Stellantis

In 2018, low-carbon vehicles represented just 0.2% of total sales of the companies that now form Stellantis, with no increase in 2019, but with a bigger jump in 2020 to 2.3% of total vehicle sales. This was driven by an increased range of EV models on sale, particularly from the Groupe PSA part of the business, such as the Peugeot E-208. The company will need to significantly scale on its low-carbon vehicle sales to reach the 64.5% low-carbon vehicle sales share by 2030 expected by its 1.5°C pathway.

Stellantis is aiming for “low-emissions vehicles” (battery electric vehicles and plug-in hybrid electric vehicles) to make up 70% of passenger car sales in Europe and 35% of light duty vehicle sales in the USA by 2030. Additionally, 23% of vehicle sales in 2020 were from outside of Europe and the US, but no low-carbon vehicle targets have been set for other regions.

Between 2015 and 2020, the average fuel economy of Stellantis internal combustion engine vehicles worsened from 6.54 litres of gasoline equivalent per 100 km (Lge/100km) to 7.72 Lge/100km. This was likely due in part to an increasing proportion of sales from heavier and less fuel-efficient vehicles. For example, pickup truck sales went from 8% of total sales in 2015 to 16% in 2020. The fuel efficiency of internal combustion engine vehicles needs to improve by 2% per year after 2020 to deliver a 1.5°C pathway.

Stellantis will publish its transition planning in full as part of the Stellantis strategic plan in spring 2022. The company can use this opportunity to conduct climate scenario analysis and ensure planning is aligned with a 1.5°C scenario. Already, Stellantis has set out financial measures, committing EUR 30 billion (USD 34 billion) to electrification and software and setting targets to reduce battery pack costs. Stellantis can also establish robust climate governance, by ensuring board-level oversight, hiring executives with expertise in the low-carbon transition and linking executive renumeration to emissions reduction.

Stellantis has inherited Groupe PSA’s significant mobility business, which offers car-sharing, car rental and ride-hailing services under its Free2Move brand, which had approximately 1.2 million customers in 2020. Stellantis has announced that it will be complemented with a new joint venture with Engie EPS called Free2Move eSolutions. Stellantis can show its commitment to clean mobility by setting clear targets and a deployment schedule for scaling up this business. It is also involved in the battery manufacturing business through its joint venture Automotive Cells Company, which is targeting 120 gigawatt hours of battery capacity by 2030.

Stellantis has not yet set emissions targets. It is aiming for 70% of passenger car sales in Europe and 35% of light duty vehicle sales in the U.S. to be battery electric or plug-in hybrid vehicles by 2030.

Stellantis is investing USD 34 billion in electrification and software between 2021 and 2025. It plans to offer electrified vehicles across all 14 of its brands and is aiming for 40% reduction in battery cell cost by 2024 and 60% by 2030. It aims to introduce solid state battery technology by 2026.

In 2020, 2.3% of Stellantis vehicle sales were low-carbon vehicles. Groupe PSA invested 32% of its R&D budget in clean technology in 2020, but no similar information was disclosed by FCA.

The company’s scope 3 emissions intensity increased from 98 grammes of CO2 per passenger kilometre (gCO2/p.km) in 2015 to 111.3 gCO2/p.km. Stellantis saw an increase in its scope 1 and 2 emissions intensity between 2018 and 2020.

Stellantis has had limited success to date in reducing emissions. It is now making significant financial commitments to electrification which may help it scale low-carbon vehicle sales. Stellantis continues to be a member of at least five trade associations that have opposed climate policy.