The loss of life of the interior combustion engine has been exaggerated since among 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 biggest funding ever in South America’s automotive sector, the expenditure will assist 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. As well as, it will produce no less than one totally electrical automotive within the area. The investments will likely 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. Furthermore, all will likely be suitable with current manufacturing strains in South America to maintain prices low. New flex-fuel hybrid fashions are as a result of come out in late 2024, and a few autos are getting a dual-clutch computerized transmission.
The area represents large enterprise for the automotive conglomerate contemplating Stellantis has a market share of 31.4 p.c in Brazil and 23.5 p.c throughout the whole lot of South America. It additionally tops the gross sales charts in Argentina and Chile. Final 12 months, Stellantis moved greater than 878,000 autos within the area. It is also the chief within the business car phase, with a share of 28.6 p.c.
The primary purpose why Fiat was Stellantis’ best-selling model in 2023, for the third 12 months in a row, was due to its glorious efficiency in South America. The Italian automaker is a shadow of its former self at house in Europe and practically absent in North America but it surely’s doing massive enterprise in lots of Latin American nations.
Toyota has additionally expressed its long-term dedication to combustion engines by saying improvement has began on a brand new household of ICEs. Whereas emissions rules are usually not as harsh in South America as they’re in Europe, the EU’s ban on new automobiles which have dangerous emissions from 2035 is likely to be pushed again. Porsche Chief Monetary Officer Lutz Meschke mentioned so at first of the 12 months in an interview with Automotive Information Europe.
