America invests $6 billion in the engine of the future: Not hydrogen, not ammonia, but alcohol-derivated:One of the biggest automakers in the world, Stellantis, is about to embark on a $6 billion project to create new internal combustion engines that run on ethanol, establishing the company as a major role in the global automotive industry going forward.
The $2 billion investment earmarked for South America would be a record for the region’s automotive sector and serves as a reminder that internal combustion engines are far from extinct, even in spite of the growing trend toward electrification of vehicles.
By using flex-fuel engines, hybrid technologies, and upcoming de-carbonization projects, Stellantis is presenting a long-term vision for both conventional and non-conventional energy sources throughout its strategic evolution.
The rationale behind Stellantis’ flex-fuel engine wager: Recognizing how their $6 billion strategy incorporates ethanol
The production of flex-fuel engines—engines that run on both gasoline and alcohol—is the main focus of Stellantis’ investment ambitions. Not only are these engines more environmentally friendly than gasoline-powered ones, but they also offer a more flexible solution for regions like South America where ethanol is more readily available.
For example, Brazil has been a global leader in ethanol production because of its output of sugarcane, and Stellantis has successfully utilized this resource by utilizing flex-fuel technology. By putting flex-fuel engines into service, Stellantis is demonstrating that it has plans in place to both help reduce global carbon emissions and address the energy needs unique to the South American region.
How Stellantis is fusing electrification and flexibility in hybrid-flex and electric systems to create a more environmentally friendly future
Stellantis has revealed ideas for hybrid and plug-in hybrid-flex systems, which combine electricity and flexibility, in addition to flex-fuel engines. By combining the benefits of both fuel types, these hybrid technologies will provide consumers with an extremely effective and ecologically friendly form of transportation.
As a result, a battery component will be included in the next generation of hybrid-flex engines to improve fuel economy and lower pollutants. In order to improve the cars’ performance and lower their greenhouse gas emissions, hybrid technology will also be added.
With hybrid flex vehicles, the corporation is getting ready for a more inclusive and eco-friendly mobility market that does not rely solely on internal combustion engines.
The South American car industry: The reasons Stellantis is making significant investments here to support development and innovation
It is noteworthy that Stellantis’s investment in South America is a component of an expanding trend wherein the area has a major role in the international strategy of the corporation. With a 31% market share, the business is better positioned to provide its clients with the greatest products that satisfy their needs.
In 2023, Stellantis sold about 878,277 cars in the area, indicating a significant amount of growth as the business introduces its new flex-fuel and hybrid models. Stellantis is also dedicated to manufacturing a minimum of one additional all-electric car, or EV, to meet the demand in the local market.
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How the new OTMS-compliant gasoline engines from Stellantis are reshaping the future: Reimagining internal combustion
Thus, it is possible to see Stellantis’ $6 billion wager on new gasoline engines that comply with OTMS as a vote of confidence in internal combustion engines’ capacity for future adaptation.
While electrification is the main emphasis of most automotive industry goals, Stellantis anticipates a more balanced approach with hybrids and flex-fuel vehicles. Stellantis has made ethanol, a byproduct of sugarcane, a primary investment focus because it is a widely used energy source in South America.
Utilizing a single energy source is not the only objective here; it is also important to do this in the region with the largest global carbon emissions. The business plans to continue its dominance in the region and address customer expectations by creating and introducing over 40 new vehicles into the market between 2025 and 2030.