Dare Forward 2030: A Bold Strategic Plan for the Future of Mobility

speaker1

Welcome, everyone, to our podcast, where we dive deep into the future of mobility with the ambitious Dare Forward 2030 plan by Stellantis. I'm your host, and with me is my co-host, who will be asking all the tough and interesting questions. Today, we're going to explore how Stellantis plans to lead the way in sustainable and innovative mobility. So, let's get started!

speaker2

Hi there! I'm really excited to be here. So, what exactly is the Dare Forward 2030 plan, and why is it so important for Stellantis and the automotive industry as a whole?

speaker1

Great question! The Dare Forward 2030 plan is a comprehensive and bold strategic vision that Stellantis unveiled in March 2022. It's designed to transform the company into a leader in sustainable and innovative mobility by 2030. The plan is built around three fundamental pillars: Care, Tech, and Value. Each of these pillars is grounded in a strong foundation of global diversity, iconic brands, and operational excellence. By focusing on these areas, Stellantis aims to achieve a carbon net zero by 2038 and double its net revenues to €300 billion by 2030. It's a ambitious plan that sets a new benchmark for the industry.

speaker2

Wow, that sounds incredibly ambitious! Can you tell us more about the foundation of Stellantis that supports this plan? How does a company with such a diverse portfolio of brands and a global presence ensure that it can achieve these goals?

speaker1

Absolutely! The foundation of Stellantis is a crucial element of the Dare Forward 2030 plan. It's built on a strong legacy of over a century of experience, with a diverse workforce spanning 170 nationalities across all regions of the world. This global diversity brings unique perspectives and experiences, which are essential for innovation and problem-solving. Additionally, Stellantis has a house of iconic brands like Jeep, Fiat, and Peugeot, each with its own unique identity and customer base. This diverse portfolio allows the company to cater to a wide range of market segments and customer needs. Lastly, Stellantis has a proven track record of operational excellence, which ensures that the company can efficiently execute its strategic plans and meet its ambitious targets.

speaker2

That makes a lot of sense. So, moving on to the first pillar, Care. How does Stellantis ensure that ethical responsibility and sustainability are at the core of its operations? Can you give us some specific examples of how they are implementing this?

speaker1

Absolutely, the Care pillar is all about ensuring a sustainable future for customers, employees, and the planet. One of the key targets under this pillar is to reduce the company's carbon footprint by 50% by 2030 compared to 2021 levels. To achieve this, Stellantis is investing heavily in electrification and sustainable manufacturing processes. For example, they are transitioning their entire fleet to battery electric vehicles (BEVs) in the European Union by 2030 and aiming for a 50% mix of BEVs in the U.S. market. Additionally, they are committed to achieving carbon net zero by 2038, which involves not only reducing emissions from their vehicles but also from their supply chain and manufacturing operations. They are also focusing on improving customer satisfaction and ensuring that their products and services are safe, reliable, and accessible to all.

speaker2

That's really impressive! Moving on to the Tech pillar, what are some of the breakthrough ideas and technologies that Stellantis is embracing to reinforce its leadership in offering innovative, clean, safe, and affordable mobility? How do they plan to stay ahead in the rapidly evolving tech landscape?

speaker1

The Tech pillar is where Stellantis is really pushing the boundaries of innovation. They are investing heavily in electrification, with a goal of having a 100% mix of battery electric vehicles (BEVs) in the EU and a 50% mix in the U.S. by 2030. This involves developing advanced battery technologies and infrastructure to support widespread adoption of electric vehicles. Additionally, Stellantis is focusing on the digital revolution, including software and artificial intelligence (AI) to enhance the driving experience. They are also making significant strides in autonomous driving, with the aim of offering Level 4 autonomous vehicles by 2024. This will not only improve safety but also make mobility more accessible and convenient for everyone. They are also investing in hydrogen fuel cell technology as an alternative to battery electric vehicles, especially for larger vehicles and long-range applications.

speaker2

That's fascinating! And what about the Value pillar? How does Stellantis plan to create value for all stakeholders, and what specific strategies are they using to achieve this?

speaker1

The Value pillar is all about being 'second to none' in value creation for all stakeholders. Stellantis has identified seven accretive businesses, each with its own profit and loss (P&L) statement, which will help diversify and strengthen the company's revenue streams. These businesses include everything from traditional automotive manufacturing to mobility services, energy solutions, and financial services. By diversifying their revenue streams, Stellantis aims to reduce dependency on any single market or product and ensure sustainable growth. They are also fostering an entrepreneurial mindset within the organization, encouraging innovation and agility. This involves creating a culture where employees are empowered to take risks and drive new initiatives. The goal is to achieve double-digit adjusted operating income margins throughout the decade, which will not only benefit shareholders but also employees, customers, and the broader community.

speaker2

That's really inspiring! Now, let's talk about the carbon net zero goal by 2038. What specific steps is Stellantis taking to achieve this, and how are they ensuring that this ambitious target is met?

speaker1

Achieving carbon net zero by 2038 is a significant and challenging goal, but Stellantis is taking a multi-faceted approach to make it happen. They are focusing on reducing emissions from their vehicles, supply chain, and manufacturing operations. For vehicles, the transition to electric and hydrogen fuel cell vehicles is a key strategy. They are also working with suppliers to reduce emissions in the supply chain, including sourcing materials from more sustainable and responsible sources. In manufacturing, they are investing in energy-efficient technologies and renewable energy sources to power their plants. Additionally, they are exploring carbon capture and storage technologies to offset remaining emissions. This comprehensive approach ensures that all aspects of the company's operations are aligned with the goal of achieving carbon net zero by 2038.

speaker2

That's really comprehensive. How does Stellantis leverage its global diversity and iconic brands to support these strategic goals? Can you give us some examples of how different brands are contributing to the overall vision?

speaker1

Absolutely, the global diversity and iconic brands of Stellantis are key assets that support the Dare Forward 2030 plan. Each brand brings its own unique strengths and customer base, which allows Stellantis to cater to a wide range of market segments and customer needs. For example, the Jeep brand is focusing on electrification and sustainability while maintaining its iconic off-road capabilities. The Fiat brand is leveraging its expertise in city cars to develop compact and efficient electric vehicles. Peugeot and Citroën are investing in advanced battery technologies and hydrogen fuel cell vehicles to cater to the European market. The diversity of these brands ensures that Stellantis can offer a comprehensive portfolio of sustainable and innovative mobility solutions to customers around the world. Additionally, the global presence of Stellantis allows them to tap into different market trends and customer preferences, which helps in driving innovation and growth.

speaker2

That's really interesting. So, how does Stellantis ensure operational excellence and maintain its house of brands while pursuing these ambitious goals? What specific strategies are they using to achieve this?

speaker1

Operational excellence is a cornerstone of Stellantis's strategy, and they are using several strategies to maintain it while pursuing their ambitious goals. One key approach is through lean manufacturing and continuous improvement processes, which help to optimize efficiency and reduce waste. They are also leveraging advanced technologies, such as artificial intelligence and data analytics, to enhance production processes and improve quality. Another important strategy is fostering a culture of collaboration and innovation, where employees at all levels are encouraged to contribute ideas and drive improvements. This involves cross-functional teams and a focus on agile methodologies. By maintaining a strong focus on operational excellence, Stellantis can ensure that they can efficiently execute their strategic plans and meet their ambitious targets.

speaker2

That's really impressive. How does Stellantis ensure that customer experience and stakeholder engagement are at the forefront of their operations? Can you give us some examples of how they are engaging with customers and stakeholders?

speaker1

Customer experience and stakeholder engagement are critical components of the Dare Forward 2030 plan. Stellantis is taking a multi-faceted approach to ensure that customers and stakeholders are at the core of their operations. For customers, they are focusing on providing a seamless and personalized experience, from the initial purchase to ongoing support and service. This involves leveraging digital technologies to enhance the customer journey, such as online configurators, virtual showrooms, and mobile apps. They are also investing in after-sales services to ensure that customers are satisfied and loyal. For stakeholders, Stellantis is fostering open and transparent communication through regular stakeholder dialogues, including with investors, employees, suppliers, and local communities. They are also committed to responsible purchasing practices and human rights, ensuring that their operations are ethical and sustainable. By prioritizing customer experience and stakeholder engagement, Stellantis can build strong and lasting relationships that support their strategic goals.

speaker2

That's really reassuring to hear. Finally, can you give us a brief overview of the financial ambitions and strategic targets set out in the Dare Forward 2030 plan? How does Stellantis plan to achieve these ambitious financial goals?

speaker1

Absolutely, the financial ambitions of the Dare Forward 2030 plan are ambitious and designed to ensure sustainable growth and value creation. Stellantis aims to double its net revenues to €300 billion by 2030, which is a significant increase from the 2021 levels. To achieve this, they are focusing on several key strategies. First, they are diversifying their revenue streams through the seven accretive businesses I mentioned earlier, which will help reduce dependency on any single market or product. Second, they are investing heavily in innovation and technology to stay ahead of the competition and meet changing customer needs. Third, they are maintaining a strong focus on operational excellence and cost efficiency to ensure that they can deliver sustainable profits. Additionally, they are expanding their presence in growing markets outside of North America and Europe, such as Asia and South America. By executing these strategies, Stellantis aims to achieve double-digit adjusted operating income margins throughout the decade, which will not only benefit shareholders but also support the company's broader strategic goals.

speaker2

That's a fantastic overview! Thank you so much for joining us today and sharing all these insights about the Dare Forward 2030 plan by Stellantis. It's clear that they have a bold and comprehensive vision for the future of sustainable and innovative mobility. We can't wait to see how it all unfolds. Thanks, everyone, for tuning in, and stay tuned for more exciting episodes!