Stellantis unveils $70 billion turnaround plan, targets positive cash flow by 2028

Stellantis unveils $70 billion turnaround plan, targets positive cash flow by 2028

• Stellantis CEO Antonio Filosa will lay out out a new five-year strategic plan Thursday worth 60 billion euros (US$69.7 billion).
• The automaker also plans to target annual cost savings of 6 billion euros by 2028.
• Stellantis is holding its first investor day with Filosa as CEO at the company's North American headquarters near Detroit.

AUBURN HILLS, Mich. — Stellantis said Thursday it plans to invest 60 billion euros (US$69.7 billion) under a new five-year strategic plan by CEO Antonio Filosa that also targetsannual cost savings of 6 billion euros by 2028.

The plan includes putting 36 billion euros toward the company's massive portfolio of automotive brands to launch more than 60 new vehicles as well as major refreshes of 50 other models, including all-electric vehicles, hybrids and traditional internal combustion engines.

The other 24 billion euros will be put toward global vehicle platforms and new technologies for the automaker and its products, according to the company.

Tune in Thursday, May 21, at 10:25 a.m. ET: CNBC's Phil LeBeau interviews Stellantis CEO Antonio Filosa. Watch in real time on CNBC+ or the CNBC Pro stream.

Stellantis also said it plans to achieve positive free cash flow by 2028 after losing 22.3 billion euros last year that included a 22 billion euro restructuring away from all-electric vehicles.

Under the plan, Stellantis will not eliminate any of its 14 automotive brands, but it will fold operations of its DS and Lancia European units into Citroen and Fiat, respectively, according to the company.

Fiat is one of four designated "global brands" alongside Jeep, Ram Trucks and Peugot. That division also includes the Pro One commercial operations. Its regional brands will include Chrysler, Dodge, Citroen, Opel and Alfa Romeo. It also owns luxury brand Maserati.

Filosa — who began leading the automaker less than a year ago — and other executives are set to lay out details of the "FaSTLAne 2030" plant hroughout the day Thursday during his first investor day as CEO at the company's North American headquarters near Detroit.

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