Despite the global push for electric vehicles, internal combustion engines (ICEs) aren’t ready to retire just yet. With an increasing number of automakers investing billions into the development of new ICEs, it’s clear that the automotive scene presently cohabits both worlds. Stellantis, an automotive conglomerate, recently signaled its allegiance to the ICE domain with a significant investment for new engines and vehicles. This article delves deeper into Stellantis’ investments, the development of flex-fuel engines, plans for hybrid-flex and plug-in hybrid-flex setups, the company’s market share, and other major automakers’ stance on ICEs.
Huge Investment in Internal Combustion Engines
Stellantis, which owns 14 brands, is pouring the equivalent of $6 billion into new internal combustion engines and vehicles in South America. This investment, the largest ever in the continent’s automotive sector, is slated to support the launch of over 40 new vehicles.
Development of Flex-Fuel Engines
Part of the expenditure is also set to fund the development of flex-fuel engines, internal combustion engines designed to run on gasoline and ethanol. Stellantis’ commitment to these engines marks a significant strategic shift in the company’s powertrain development approach.
Plans For Hybrid-flex and Plug-in Hybrid-flex Setups
In addition to traditional and flex-fuel ICEs, Stellantis is also exploring vehicles with hybrid-flex and plug-in hybrid-flex setups. These combinations aim to augment efficiency by pairing a versatile combustion engine with a battery. Notably, the company aims to debut at least one fully electric car in the region, with the investments slated between 2025 and 2030.
Stellantis’ Market Share in South America
Stellantis’ significant market presence in South America, boasting a market share of 31.4 percent in Brazil and 23.5 percent across the continent, emphasizes the reasoning behind their hefty investment. The company’s successful sales figures in Argentina and Chile, moving more than 878,000 vehicles last year, further underpin the strategic decision.
Other Automakers’ Stance on Internal Combustion engines
Similarly, Toyota has recently voiced its long-term commitment to internal combustion engines, announcing the start of development on a new family of ICEs. While these regulations are softer in South America when compared to Europe, automakers appear to be buoyed by suggestions that the EU’s ban on new cars with harmful emissions from 2035 might be deferred.
In conclusion, leading automakers such as Stellantis and Toyota are continuously reevaluating their strategies to align with the rapidly progressing industry. Their significant investments in ICEs indicate that while the future is electric, there’s still room for combustion engines in the automotive world.