The loss of life of the inner combustion engine has been exaggerated since a number of the largest automakers are nonetheless pouring billions into new ICEs. Stellantis is the following auto juggernaut to sign it has no intention of abandoning piston-powered automobiles anytime quickly. The automotive conglomerate that owns 14 manufacturers is spending the equal of $6 billion in South America on new engines and autos.
Touted as being the most important funding ever in South America’s automotive sector, the expenditure will help the launch of over 40 automobiles and the event of flex-fuel engines. In case you are unfamiliar with the time period, it refers to an inner combustion engine engineered to run on gasoline and ethanol.
Stellantis can also be planning autos with hybrid-flex and plug-in hybrid-flex setups for even higher effectivity by combining the versatile combustion engine with a battery. In addition, it will produce no less than one absolutely electrical automobile within the area. The investments can be made between 2025 and 2030.
These electrified flex-fuel engines are being developed to accommodate a number of fashions throughout Stellantis’ in depth portfolio. Moreover, all can be suitable with current manufacturing strains in South America to maintain prices low. New flex-fuel hybrid fashions are attributable to come out in late 2024, and a few autos are getting a dual-clutch automated transmission.
The area represents large enterprise for the automotive conglomerate contemplating Stellantis has a market share of 31.4 % in Brazil and 23.5 % throughout everything of South America. It additionally tops the gross sales charts in Argentina and Chile. Last yr, Stellantis moved greater than 878,000 autos within the area. It’s additionally the chief within the business automobile section, with a share of 28.6 %.
The foremost purpose why Fiat was Stellantis’ best-selling brand in 2023, for the third yr in a row, was due to its wonderful efficiency in South America. The Italian automaker is a shadow of its former self at residence in Europe and almost absent in North America however it’s doing huge enterprise in lots of Latin American nations.
Toyota has additionally expressed its long-term dedication to combustion engines by saying growth has began on a new family of ICEs. While emissions laws usually are not as harsh in South America as they’re in Europe, the EU’s ban on new automobiles which have dangerous emissions from 2035 might be pushed back. Porsche Chief Financial Officer Lutz Meschke stated so firstly of the yr in an interview with Automotive News Europe.