This legacy automaker says it just turned a profit on EVs

Entertainment

Jeep and Chrysler owner Stellantis – hardly a hero in our EV adoption story – says that it is finally turning a profit on EVs. But that’s in no part due to US sales, since the company doesn’t sell any EVs in the country – but that is changing with a lineup on its way this year.

Speaking to journalists yesterday, CEO Carlos Tavares said that the company – which makes vehicles at its US plants for Jeep, Ram, Chrysler and Dodge brand – doesn’t plan on cutting production of EVs, reports Automotive News.

It’s a big milestone for legacy automakers, which have struggled to turn a profit on EVs even during high demand, falling woefully behind industry leaders Tesla and China rival BYD.

But still, Stellantis is hoping to position itself differently from the other members of the Big Three. “Stellatis’ strategy is very different… from the other competitors from Detroit,” Tavares said. “We’re keeping full speed on electrification.”

The company reported its third consecutive year of record profits since the merger of Fiat Chrysler and PSA Group formed the company in 2021. In the US, Stellantis makes vehicles at its US plants for Jeep, Ram, Chrysler, and Dodge brand. So far, it hasn’t sold a single EV in the US but sells them in Europe, with plans to bring EVs, starting with the Fiat 500e, to North America this year. 

Ford, which is the only automaker to officially break out EV and ICE results separately, reported a loss of $4.7 billion in EVs last year, or more than $40,000 per vehicle. General Motors didn’t break out EV results but said that it remains on track to profit from EV sales in the second half of this year. But in recent months, both Ford and GM have pulled back on their production plans on EVs, citing a drop in demand.

Taveras did say that it’s possible that company’s record profits might shift as it focuses on making EVs, athough he says he is positive that 2024 will be better than 2023, since Stellantis was among the automakers contending with a six-week UAW strike at its US plants.

“We are working very, very hard to bring the profit margins of electrified vehicles to the same level as ICEs,” he said. “We are not there yet. But we are getting closer.”

Besides the Fiat 500e, Stellantis is slated to bring a Ram ProMaster EV along with zero-emissions models from Dodge, Jeep, and Ram to the US this year. Several of its brands already have set targets for dropping ICE versions, including Alfa Romeo going fully electric by 2027 and Chrysler by 2028. Stellantis is aiming for 100% electric passenger car and light-duty truck sales in Europe by 2030, while aiming for only half of that for the US.

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