Stellantis Sets New Standard for Sustainable Mobility with $6 Billion Bio-Hybrid Investment in South America

In a landmark move that could reshape the global approach to vehicle sustainability, Stellantis—the $220 billion automotive powerhouse behind 14 renowned car brands—has committed to a massive $6 billion investment for South America. This investment will be rolled out between 2025 and 2030, representing the largest automotive investment in South America to date. Stellantis is betting on Bio-Hybrid technology to redefine internal combustion engines (ICEs) as a sustainable mobility option, especially in a region where biofuels like ethanol are abundant.

Pioneering Bio-Hybrid Technology

Stellantis’s Bio-Hybrid approach combines electric power with hybrid engines that run on renewable biofuels such as ethanol, a fuel source widely used in South America. The company is positioning its Betim plant in Brazil as the global center for this innovative technology. This initiative will support the production of three levels of Bio-Hybrid powertrains:

• Bio-Hybrid engines
• Bio-Hybrid with electrified dual-clutch transmissions (CT)
• Bio-Hybrid Plug-in hybrids

This investment not only reinforces Stellantis’s commitment to sustainability but also aims to push South America into a leading position in the global bio-power engine technology market.

Strengthening Market Dominance in South America

With a 31% market share in South America, Stellantis is already a leading automotive force in the region, holding top positions in Brazil, Argentina, and Chile. Over the next five years, Stellantis plans to launch more than 40 new models in the South American market. This product expansion, combined with Bio-Hybrid advancements, is designed to help Stellantis retain its dominance in a region where traditional internal combustion engines still hold significant appeal.

Stellantis is also expanding its influence by acquiring companies in the after-sale sector, positioning itself as the largest auto parts distributor in South America.

A Regional Approach to Global Sustainability Goals

While the global automotive industry shifts toward full electrification, Stellantis’s strategy allows for a tailored approach that respects regional resources and market needs. The Bio-Hybrid strategy aligns with Stellantis’s global “Dare Forward 2030” roadmap, which aims for carbon neutrality by 2038. By focusing on biofuels like ethanol, Stellantis addresses specific environmental concerns in South America, offering a lower-carbon alternative to traditional ICEs.

This localized approach allows Stellantis to contribute to decarbonization within the automotive industry while remaining adaptable to different regional demands.

Rethinking Sustainable Mobility

Stellantis’s $6 billion commitment could reshape the automotive industry’s understanding of sustainable mobility, proving that hybrid and biofuel technologies can evolve alongside electric solutions. This move cements Stellantis’s role as a global leader in sustainable mobility, demonstrating the power of adaptive strategies that prioritize regional resources and needs.

By diversifying its product offerings and focusing on Bio-Hybrid technology, Stellantis not only strengthens its market position but also reaffirms its dedication to sustainable innovation—one that bridges traditional engines and future technologies to meet global and local sustainability goals.

In sum, Stellantis’s investment is more than a financial commitment; it’s a strategic shift toward a diversified, sustainable future for the automotive industry in South America and beyond.

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