Chapter 1: Stellantis and the UAW Negotiations

Recent reports from CNBC indicate that Stellantis may be compelled to shut down 18 manufacturing plants in the United States due to ongoing negotiations with the United Auto Workers (UAW) union. The UAW members are understandably resistant to this decision, which Stellantis claims will reallocate investments towards modernization initiatives. For example, the company is conceptualizing a “Mega Hub” for its parts and distribution network, aimed at enhancing future operations in North America.

This situation exemplifies the complexities of Concept Development. In its quest to maintain a leading position in the global market, Stellantis is exploring innovative approaches to the production and distribution of its vehicles, catering to both North American and international customers. This modernization effort not only focuses on the logistics of vehicle components but also aligns with the company's broader strategy to penetrate global markets.

Additionally, this initiative reflects Stellantis' ambition to embrace a digital transformation akin to industry giants like Amazon and Alibaba, who dominate the global e-commerce landscape. For more on the latest investment trends in global e-exports, refer to Areas & Producers.

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As reported by Arab News on September 10, 2023, Saudi Aramco and Stellantis have announced their readiness to utilize advanced drop-in eFuel without requiring modifications to existing powertrains, following extensive testing conducted at technical centers across Europe. This initiative aims to reduce carbon emissions when compared to traditional fuels, as part of Saudi Aramco's strategy to produce low-carbon synthetic fuels for light-duty passenger vehicles.

In a significant industrial partnership, Saudi Aramco and TotalEnergies signed contracts to establish a state-of-the-art petrochemicals facility at the SATORP refinery in Saudi Arabia on June 24, 2023. This agreement, officiated by Saudi Aramco president and CEO, Amin H. Nasser, and TotalEnergies chairman and CEO, Patrick Pouyanne, marks a pivotal moment in strengthening ties between Saudi Arabia and global partners.

These agreements highlight the strategic considerations producers must navigate amid geopolitical trends. Saudi Aramco, for instance, faces the challenge of balancing relationships with key partners like France and the United States against its crucial customer base in China. This aligns with Stellantis' Dare Forward 2030 Vision, which has been a focal point since the 2023 Consumer Electronics Show (CES) in Las Vegas.

To kick off the CES, Stellantis made headlines by unveiling its latest Dodge Ram electric pick-up truck, the Ram 1500 Revolution, aimed at capturing a share of the growing electric vehicle (EV) market.

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Under the leadership of CEO Carlos Tavares, Stellantis has also established a joint venture aimed at designing and producing EV batteries. This partnership, known as the Automotive Cells Company (ACC), initially formed between TotalEnergies and Stellantis, welcomed Mercedes-Benz as an equal partner in 2021. The goal is to ramp up industrial capacity to approximately 120 GWh by 2030 to meet the rising demand for high-quality battery cells and modules.

As stated by the CEO of Saft (a TotalEnergies subsidiary), “ACC aims to establish itself as a leader in Europe while making significant strides on the international stage.”

Prior to forming ACC, TotalEnergies unveiled its electric mobility strategy in 2019, targeting the deployment of over 150,000 EV charging points across European cities by 2025, including 22,000 in Amsterdam and 3,000 in Antwerp.

Moreover, TotalEnergies has expanded its footprint beyond Europe, collaborating with China Three Gorges (CTG) to enhance e-mobility initiatives across Asia. The ACC is committed to ensuring efficient battery design and fulfilling the demand for EVs and other transport modes, with R&D centers established in Bruges, France, and a pilot production line set to launch in Nersac, France.

The ACC initiative is part of a broader trend where automakers and energy companies are partnering to enhance their positions in the EV market. This trend began with TotalEnergies’ acquisition of 2,000 EV charging points from Viessmann Group in Germany, solidifying its presence in the European e-mobility market.

In July 2021, TotalEnergies also partnered with Singapore’s Bollore Group to acquire over 1,500 EV charging points, which established it as the owner of Singapore’s largest EV charging network, Blue Charge.

Following this acquisition, TotalEnergies’ President of Marketing & Services remarked, “With this acquisition, TotalEnergies is advancing its transformation and expanding its presence in global cities like Paris, Amsterdam, London, and Brussels, where we are actively developing EV charging infrastructure.”

On April 27, 2022, ACC entered into a supply agreement with Umicore, a Belgium-based global materials company, focusing on next-generation high-nickel cathode materials. Notably, the batteries produced from Umicore’s materials will be recycled at ACC’s facilities in France, indicating a commitment to sustainable practices in EV battery manufacturing.

Furthermore, the development of solid-state batteries remains a priority for the future of EV production. On October 19, 2022, ACC and ProLogium Technology signed a memorandum of understanding to collaborate on solid-state battery development. This partnership is crucial in addressing supply chain challenges in battery materials across Asia, Europe, and the United States, potentially leading to faster market entry for EVs.

For further insights, read the complete article in Areas & Producers: French President Emmanuel Macron & Stellantis CEO Carlos Tavares During Electric Vehicle (EV) Revolution.

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