Auburn Hills (United States) (AFP) - Jeep and Fiat owner Stellantis said Thursday that it would invest 60 billion euros in a five-year push to restore profitability by emphasizing growth in North America and reducing capacity in Europe.

The strategic blueprint presented at the group’s North American headquarters in Michigan comes after a series of announcements by CEO Antonio Filosa, brought in last year to get the world’s fourth-largest automaker on stronger financial ground.

“We are uniquely positioned to offer delight, functionality and affordability,” Filosa said in a statement, as the Italian-French-American auto giant seeks to pivot from deep losses in 2025.

Stellantis will trim its annual costs by 6 billion euros in 2028 compared with 2025. It is targeting annual sales of 190 billion euros in 2030 from 154 billion euros in 2025.

Investors appeared unconvinced, with shares falling more than 7 percent at one point before finishing up 0.4 percent in New York.

The company said it would focus in particular on four of its 14 brands – Jeep, Ram, Peugeot and Fiat – where it would concentrate 70 percent of its planned investments, viewing these names “with their multi-regional presence, as natural first launchers for all new global assets.”

In one key decision, Stellantis plans to trim European production capacity by 20 percent.

The Europe capacity cuts will result in a reduction of 800,000 vehicles per year.

This would be achieved by “repurposing plants,” such as in Poissy outside Paris, and “leveraging partnerships” such as in Madrid and Zaragoza in Spain, as well as Rennes in western France, it said.

Filosa said there would be no plant closures.

The joint venture between Stellantis and Dongfeng would see the Chinese firm’s Voyah EVs built at a Stellantis plant in Rennes for the European market, the companies said Wednesday.

But the CFDT union said Thursday that it fears a “new wave of job losses” as it called for workers to gather on June 16 outside Stellantis headquarters at Poissy.

Filosa said at a press conference that none of the vehicles at the joint venture sites with Chinese partners compete directly with Stellantis vehicles.

- Targeting North America -

North America represents “the biggest opportunity for our growth and our profitability,” Filosa said, adding, “we are not betting on an acceleration (in the US market).”

The company is eyeing a 35 percent rise in volumes for the US market alone, where it plans seven new products priced below $40,000 and two at less than $30,000.

The plan includes adding a retail presence in US markets where Stellantis hasn’t been active and introducing vehicles in categories where it is under-represented.

By 2030, Stellantis plans more than 60 new vehicle launches, 50 “significant” refreshes, across all brands and powertrains, including 39 internal combustion engine or “mild” hybrid electric vehicles, according to a press release.

Filosa said the “very mature European market will serve as a laboratory” for the US market.

Apart from the four global brands, the company’s plan designates five other brands – Chrysler, Dodge, Citroen, Opel and Alfa Romeo – as “regional” brands, while DS Automobiles and Lancia will be managed by Citroen and Fiat respectively.

Stellantis also said this month that it was considering strengthening its alliance with Leapmotor so the Chinese group can produce its own cars at two of the European auto manufacturer’s Spanish plants.

With Dongfeng, Stellantis will produce in China Peugeot and Jeep models for the Chinese market and internationally. Stellantis also plans a European joint venture with Dongfeng that will begin with a collaboration in Rennes, France.

The deal aims to boost Stellantis brands while also letting Dongfeng build locally at a plant in western France, allowing it to avoid hefty EU tariffs on Chinese EV imports.