According to Reuters, on November 19, Stellantis announced plans to deploy a new automotive system to support the flexible assembly of gasoline, hybrid, and electric models.
The company revealed details of its STLA Frame platform, which will support the production of full-size trucks, SUVs, and various other vehicle types, including critical electrical and mechanical components.
"Despite the difficulties and challenges facing the automotive industry, we remain highly focused on executing our plans," said Stellantis CEO Carlos Tavares during a conference call with reporters.
However, Tavares noted that production of the electric Ram pickup would be postponed from this year to the first half of 2025 to ensure quality. "We are dealing with a very large workload," he explained.
Stellantis stated that Ram and Jeep models would be the first to utilize the STLA Frame platform. In 2021, the company announced that the platform would be designed to accommodate a variety of models across its product line.
Vehicles built on the STLA Frame platform are expected to offer a range of 500 miles (approximately 805 kilometers) and a towing capacity of 14,000 pounds (around 6,350 kilograms). The platform will also support hydrogen fuel vehicles and extended-range electric vehicles.
Over the past two years, global automakers have been investing in electric vehicle production capacity. However, the growth in electric vehicle demand has been slower than anticipated. Currently, Stellantis primarily offers plug-in hybrid vehicles in the U.S. market but plans to increase electric vehicle sales over the next few years. The company aims to sell only pure electric vehicles in Europe by 2030 and achieve a target where pure electric passenger cars and light trucks account for 50% of its total sales in the United States.
However, the global electric vehicle industry may face increased uncertainty if the next U.S. President, Donald Trump, follows through on plans to eliminate incentives for electric vehicle production and sales.
Last week, reports suggested that the Trump team is considering eliminating the $7,500 tax credit for consumers purchasing electric vehicles as part of broader tax reform legislation. Some Stellantis plug-in hybrid models, such as the Jeep Grand Cherokee, currently qualify for a $3,750 tax credit.
Additionally, Stellantis is facing declining sales in the North American market. Previously, its popular Jeep and Ram models brought significant profits to the company. To address high vehicle inventory and falling stock prices, Tavares has replaced the management team and announced plans to retire when his contract expires in 2026. Stellantis' stock price has dropped by approximately 40% this year.