Stellantis N.V. (STLAM) Earnings Call Transcript & Summary

So Pillar #5 now about Connected Services. Regarding this, our goal is clear: deliver our Dare Forward ambitions with EUR 5 billion in connected services revenue by 2030. So how are we going to achieve this? We'll do it in 3 steps: one, connect 100% of our vans and pickups. This will be completely the case for all Stellantis commercial vehicles by the end of this year; two, ensure that connectivity is immediately activated at customer delivery on each and every vehicle, both in Europe and also in North America. This will be a reality from early 2024 as the delivery of all the new models presented today; and three, deploy services packages focusing on business continuity and business efficiency. Features like digital maintenance monitoring, just bringing a peace of mind. Geo-fencing, that eliminates driving outside the approved perimeter and enhance, therefore, the safety of the fleet and also optimizing its usages, but also EchoDrive coaching, charge management software to optimize EV fleet and real-time driver alerts to reduce accidents, energy consumptions and also insurance costs. These are the results expected by each and every business owner. And additionally, we will improve the availability for our customers by providing easy and fast upgrades via the over-the-air technology, such as remote software updates, remote ADAS upgrades and refining EV drive modes by, for instance, adapting the delivery route to the traffic conditions. All of this being while vehicles remain in the field. So moment has come to see our new products. As I told you, the world of commercial vehicles has never seen before a full renewal of an entire lineup on the same day. And I directly hand over to Luca Marengo, Head of Fund Products, to introduce them. Luca.

Thank you, Xavier, and good morning, everybody, from my side. During the Dare Forward 2030 event, Stellantis stated that in the commercial vehicle scenario, at least one measure launch per year in relevant segment is necessary to maintain the right pace of innovation. We are keeping our promise. And actually, we are going much further. Free new brands for our brands covering all market areas for our unique 2-digit model launch, the greatest commercial vehicle offensive ever. Starting from our 360-degree approach, we consistently focused on the most important product for our customers. No compromise. This is the essence of our customer-centric strategy. To achieve all our objectives, we addressed 3 areas in particular, human-machine interface, driver assistance and second-generation 0-emission powertrains. Let's see the features, all our new vehicle share. The human-machine interface has been completely renewed, both onboard and offboard taking into account the expectation of our professional customers. We have new cockpits, a new infotainment lineup and most importantly, connectivity is a standard on all product lines. The advanced driver assistance systems adopted on our vans offer increased safety, higher productivity and stress-less driving for the full peace of mind of both drivers and owners. All vehicles in all segments are equipped with at least 18 ADAS. And on top, we introduced safety and functional IT grades such as LED headlamps. At Stellantis, we are focused on providing clean, safe and affordable mobility. Our in-house second-generation, 0-emission professional systems go exactly in this direction. As it allow us to increase the performance, improve quality, reduce costs to the benefit of our customers. Our sophisticated regenerative braking systems take into account the vehicle Nash and road dynamics. And finally, the exclusive 400-volt electric power takeoff makes all our EV vehicles easily affordable. So before discovering our new lineup, let me underline the extraordinary result our brands have achieved with the current generation of their vans. 10 million units sold worldwide. This is our DNA and the foundation on which our relationship with customer is built. And this is where we start from to move forward. Please welcome the all new Stellantis compact van range. Citroën, [indiscernible] Opel/Vauxhall combo and Peugeot Partner. These are the models, all based on the same multi-energy platform, but at the same time, they fully respect the new identity and language of the brand that they belong to. Customers will find on these vans, the values, the features and the distinctive markers they expect from their favorite brand. Opel and Vauxhall focused on technology and their brand marker is high-tech lighting. Opel and Vauxhall vans are equipped with Matrix headlamps that provide wide night vision and prevent the risk of dazzling oncoming traffic. Peugeot distinctive value is allure and customer will find on the new partner, the design and the refinement of the exclusive high cockpit, Fiat is well known for its user-friendliness and its product ingenuity and customer will be once more attracted by the intelligent solution of its magic cargo space. Finally, Customers signed on Citroën's interior and advanced comfort seats, all the traditional care of the brand for well-being on board. But let's focus now on what's new on our current advance. The human-machine interface sees a fully new infotainment lineup, including the unique smartphone station. Simply connect to your smartphone, we have the dedicated app and it will become the control panel of the entire vehicle, also interacting with the steering wheel buttons. Connectivity and simplicity of use go hand in hand here. The smartphone station represents a smart, practical and economical way to upgrade the experience on board. The offer is completed by 2 fully connected entertainment system, featuring large over 10-inch display, Apple CarPlay and Android Auto, full connectivity and on the top level, a full digital experience with embedded navigation and over-the-air updates opportunities. Driver assistance offer 18 ADAS, including the new dynamic surround vision. We support the customer in all maneuvers showing different camera views on what's behind or next to the vehicle. Our second-generation compact EV Rams reach best-in-class range up to 330 kilometers, 50 kilometers more than the current model. The heat pump we have introduced optimizes energy use in winter conditions, thus reducing waste and extending autonomy. But now it's time for our compact vans to leave the scene. Let me summarize what our compact van range has to offer. 4 body types, 2 lengths, payload, auto van turn, loading length up to 3.44 meters and choice between BV version with extended range and latest generation internal combustion engines. A wide innovative range, full of choices and features launched at a price accessible to all customers. Well, we are only at the beginning of our 12 model product presentation. Compact vans have left the scene and the stage is now ready to welcome our capable and agile mid-size vans. Citroën Jumpy, Fiat Scudo, Opel/Vauxhall Vivaro and Peugeot Expert. As you see, also mid-size van have been fully renewed each based on its brand identity. What's new here? In terms of a human-machine interface, a new instrument panel with more functions and style and many more storage compartments, a new 10-inch digital instrument cluster together with a new infotainment lineup featuring full connectivity, digital experience and ready to be always updated through over-the-air capabilities. The vehicle is equipped with 18 ADAS, including the dynamic surround vision system for safer driving and easier parking. Coming to electrification, we confirm our offer of 2 different 0 emission technologies, battery-electric vehicle and hydrogen fuel cell. This pioneering choice makes our mid-size van range unique in the competitive scenario. The updated hydrogen model will be launched by mid-2024 adopting the Stellantis exclusive mid-power system that offers all the advantages of electric traction, hydrogen battery technology with no compromise on capability. It will provide up to 400-kilometer autonomy, a record in the segment and fast refueling in less than 5 minutes, assuring a maximum flexibility of usage to our customer. Second generation BEVs are available with battery packs at 50 or 75-kilowatt hour and improved the range up to 350 kilometers. Well, time to change the scene again. Mid-size range summary, 6 body types, including the new recreational vehicle base, 2 lengths, payload up to 1.4 tons, volume in excess of a 6.6 cubic meter. And of course, choice between BEV, we've extended range, ICE and fuel cell models. And now dear guests, we conclude our display of new products with the new large van [indiscernible] to a generation of vehicles that made a history in this segment. Citroën Jumper, Fiat Ducato, Opel/Vauxhall Movano and Peugeot Boxer. What's new here? Their new human-machine interface is all around improving comfort, functionality and life on board and present a new fully configurable digital cluster, eat and work seat bench, along with an array of other new features and functionality. Large vans are large objects moving in restricted spaces, either they are delivery operators or motor drivers, customers highly appreciate driving assistance systems. And our model simply have the best equipment in the segment, thanks to the new edge power steering and the combination of adaptive cruise control with stop and go function, lane centering and traffic genesis, Movano, Boxer, Ducato and Jumper are the first large vans to reach level 2, which is the most advanced level of autonomous driving applicable on the road today. Talking of electric, we're beating all records. We offer best-in-class EV range up to 420 kilometers, 140-kilometer more than today, 110-kilowatt hour battery pack and fast charging at 150 kilowatts, meaning from 0% to 80% charge in less than 1 hour. Next year, we will launch the first ever fuel cell large van, adopting the same heat-power architecture of our midsized models, we scaled for the large van customer purpose. This hydrogen fuel version will reach up to 500-kilometer range with just 5 minutes over a field time. We have also renewed all our internal combustion powertrains, delivering high durability, high efficiency and high comfort up to 180-horsepower and 450-newton-metre peak torque, coupled with a new 8-speed automatic transmission. This combination allows for 9% lower consumption compared to current generation models and positions us at the top of the segment in terms of fuel efficiency and low CO2 emissions. Well, large vans are leaving us now. To conclude a quick sum up of what our large band range offers. 7 body types, 4 lengths and 3 heads, payload up to 2 tons, volume capacity up to 17 cubic meter, gross vehicle weight up to 5 tons and second-generation battery electric vehicle with best-in-class range, new internal combustion engine and exclusive hydrogen fuel cell version offer introduction. It is important to highlight that unlike other OEMs, we brought the purity of our all forward concept also in the electric territory. This enables Movano, Boxer, Ducato and Jumper to offer best-in-class space efficiency. In fact, our 6-meter version have the same capacity of our competitor's 6.5 meter vans. This is a great moment for our current and future customer for Stellantis and for all of us. 12 name plates across our brands, covering all light commercial vehicle segments, hitting the market at the same time. A launch like no one had ever seen before at the start of a commercial vehicle offensive that will make ways in the market. Thank you.

Thank you, Luca. So as you've understood, our leading positions worldwide do not prevent us from accelerating even further and expressing the strong Stellantis ambition on this commercial vehicle business. Today, we have shown you our 360-degree business approach, reminded you, based on 5 pillars, all of them to be the preferred business partner for our customers. You understand that this is a very important project for us, a very important project for our company. A project for which the full commercial vehicle team is 100% mobilized, a project for which the entire Stellantis company is mobilized. This is just key to our future. We said in the Dare Forward 2030 commitment that we would take full leadership by 2030. But these commercial vehicles offensive will enable us to achieve it by 2027. This is why we had to give to this project. We had to give to this ambition a real dedicated name Stellantis Pro One. [Presentation]

Stellantis Pro One is born. Why Pro One? Pro because we are professionals providing answers to professionals. And One, because our 6 brands converge to one force, dedicated to one priority, customers. Customers are the heart of everything we do in our 360-degree business partner strategy and to make it short worldwide leadership by 2027. This is really a historical moment. So let's celebrate it with the final product parade. [Presentation]