Stellantis boosts Mirafiori hub with new eDCT production, secures €100M investment By Investing.com

TURIN, Italy – Stellantis N.V. (NYSE:) has announced the start of production for electrified dual-clutch transmissions (eDCTs) at its historic Mirafiori complex in Italy, marking the latest phase in a €240 million investment to transform the site into the Mirafiori Automotive Park 2030. The eDCTs will be used in Stellantis-brand hybrid vehicles, with the facility slated to produce up to 600,000 units annually.

The launch of eDCT production complements the eight new activities introduced at Mirafiori since Stellantis’s inception, which include a Battery Technology Center, Circular Economy Hub, and the forthcoming grEEn-campus. These developments are part of Stellantis’s broader vision to evolve into a sustainable mobility tech company, with Mirafiori serving as a central hub for the company’s design, engineering, manufacturing, supply chain, and recycling operations.

In addition to the eDCT production, Stellantis’s CEO Carlos Tavares announced an extra €100 million investment to enhance the Fiat 500e. This investment aims to make the model more accessible and attractive to customers by incorporating new generation battery technology, potentially increasing production at Mirafiori. This move is supported by incentives to boost the electric vehicle market and is expected to provide a better customer experience through a more favorable range/price ratio.

Mirafiori, one of Stellantis’s three primary global decision centers, is at the forefront of the company’s Dare Forward 2030 strategy, which includes a commitment to carbon net zero by 2038. The site’s transformation aligns with Stellantis’s sustainability goals, contributing to a projected 36,000 tonnes of CO2 equivalent emissions savings upon project completion.

The Mirafiori Automotive Park 2030 is a testament to the site’s 80-year history and current role in producing vehicles like the Abarth 500e, Fiat 500e, and Maserati models, with over 90% of its output exported. The park also houses various innovative initiatives, such as the SUSTAINera Circular Economy Hub and the upcoming grEEn-campus, aimed at fostering a carbon-neutral and collaborative workplace.

Stellantis has invested over €5 billion in its Italian operations in the past five years, signaling a continued commitment to the country’s automotive industry. The company’s collaboration with the Polytechnic of Turin, which began in 1999, will further contribute to the development of a design and sustainable mobility campus within the Mirafiori area.

This news is based on a press release statement from Stellantis N.V.

InvestingPro Insights

Amidst the significant advancements at the Mirafiori complex, Stellantis N.V. (STLA) presents a strong investment profile, as evidenced by key metrics and InvestingPro Tips. Notably, Stellantis holds more cash than debt on its balance sheet, an indicator of financial stability that could support the company’s ambitious €240 million investment in the Mirafiori Automotive Park 2030. Moreover, the company is trading at a low P/E ratio of 4.2, which when compared to its near-term earnings growth, suggests an attractive valuation for investors.

InvestingPro Data further reveals Stellantis’s robust financial health, with a sizeable market capitalization of $104.41 billion, reinforcing its status as a prominent player in the Automobiles industry. The company’s revenue growth over the last twelve months as of Q4 2023 stood at 5.54%, highlighting its ability to expand amidst a dynamic automotive market. Additionally, a substantial dividend yield of 4.63% underscores Stellantis’s commitment to returning value to shareholders, a factor that may appeal to income-focused investors.

For those seeking a deeper dive into Stellantis’s performance and potential, more InvestingPro Tips are available, including insights into the company’s profitability, price trends, and analysts’ predictions for the year. With an additional 11 tips listed on InvestingPro, investors can further assess the merits of including Stellantis in their portfolios. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with comprehensive data and analysis.

As Stellantis continues to innovate and invest in sustainable mobility solutions, these financial metrics and insights serve as a testament to the company’s growth trajectory and strategic positioning within the industry.

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