Stellantis Spending $6 Billion on New Gasoline Engines that Run on Ethanol

March 07, 2024

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by Adrian Padeanu (Motor 1) ... Stellantis is the next auto juggernaut to signal it has no intention of abandoning piston-powered cars anytime soon. The automotive conglomerate that owns 14 brands is spending the equivalent of $6 billion in South America on new engines and vehicles.

Touted as being the largest investment ever in South America's automotive sector, the expenditure will support the launch of over 40 cars and the development of flex-fuel engines. In case you're unfamiliar with the term, it refers to an internal combustion engine engineered to run on gasoline and ethanol.

Stellantis is also planning vehicles with hybrid-flex and plug-in hybrid-flex setups for even better efficiency by combining the versatile combustion engine with a battery. In addition, it'll produce at least one fully electric car in the region. The investments will be made between 2025 and 2030.

These electrified flex-fuel engines are being developed to accommodate multiple models across Stellantis' extensive portfolio. Moreover, all will be compatible with existing production lines in South America to keep costs low. New flex-fuel hybrid models are due to come out in late 2024, and some vehicles are getting a dual-clutch automatic transmission.

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Toyota has also expressed its long-term commitment to combustion engines by announcing development has started on a new family of ICEs. While emissions regulations are not as harsh in South America as they are in Europe, the EU's ban on new cars that have harmful emissions from 2035 might be pushed back. READ MORE

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Excerpt from Motor 1: Porsche Thinks The Combustion Engine Could Survive Beyond 2035 in The EU

Porsche Chief Financial Officer Lutz Meschke attended the world premiere of the Macan EV this week in Singapore where he let it slip the combustion engine's future might not be as dark as claimed. Speaking with Automotive News Europe, the company's CFO said: "There's a lot of discussions right now around the end of the combustion engine. I think it could be delayed."

He was referring to the sales ban on new cars with combustion engines in the European Union from 2035. For the sake of clarity, the ban refers to cars that generate emissions, so in theory, hydrogen-burning combustion engines or ones that run on synthetic fuels could be allowed. In March 2023, Reuters reported on the European Commission's draft to allow sales of new ICE cars after 2035 provided the vehicles run on climate neutral fuels.

Later in September, the news agency followed-up with a story about another draft demanding automakers to demonstrate that their cars can run entirely on e-fuels that are carbon neutral.

In the case of Porsche, the Zuffenhausen-based marque projects more than 80 percent of cars delivered globally annually will be EVs by 2030. In the meantime, a gas model will be prematurely retired in the European Union where the first-generation Macan will cease to exist later this year due to upcoming cybersecurity regulations. The fully electric, second-generation model will indirectly take its place, but at a much higher price tag. READ MORE

Excerpt from Europa Wire: Stellantis announced a record investment plan for the South American region totaling €5.6 billion (R$30 billion) from 2025 to 2030, making it the largest investment in the history of the Brazilian and South American automotive industry. The planned investments will support the launch of more than 40 new products during the period as well as the development of new Bio-Hybrid technologies, innovative decarbonization technologies across the automotive supply chain, and strategic new business opportunities.

The investment from Stellantis reinforces its leadership in the region, strengthens the development of the local industry, and accelerates its achievement of the Dare Forward 2030 long-term strategic plan as the region maintains its leadership in offering clean, safe and affordable mobility in Brazil and South America.

“This announcement solidifies our trust and commitment in the future of the South American automotive industry and is a response to the favorable business environment here,” said Stellantis CEO Carlos Tavares. “As a critical part of our ‘third engine’ growth strategy, South America will take a leading role in accelerating the decarbonization of mobility together with our employees, our supply chain network and our partners. I want to thank each team member involved in helping create and execute our investment strategy so that, together, we can achieve our industry-leading carbon neutrality ambition.”

As part of its Dare Forward 2030 strategic plan, Stellantis is investing more than €50 billion in electrification over the next decade and is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions. South America plays a leading role in the “third engine” – the aggregation of the South America, Middle East & Africa and China and India & Asia Pacific segments – and is a thriving contributor to growing Stellantis’ revenue targets outside North America and Europe.

New Propulsion Systems Featuring Bio-Hybrid Technologies

One of the beneficiaries of this investment are the cutting-edge Bio-Hybrid technologies, which combine electrification with hybrid engines powered by bio-fuels (ethanol) on three different levels. The Stellantis facility in Betim, Brazil is the Company’s global center of expertise for Bio-Hybrid technology, continuing its legacy of innovation. Stellantis, under the Fiat brand, pioneered the development and application of bio-fuel engine technology, which used 100% ethanol. In the future, the region will also produce a battery electric vehicle (BEV).

The production of the first vehicles equipped with Bio-Hybrid technology is flexible and can be integrated into various models manufactured by Stellantis. It is compatible with all production lines of the Company in the region. The new hybrid and electric technologies are expected to strengthen Brazilian engineering and the domestic industry. The Bio-Hybrid technology is supported by three hybrid powertrains that will be gradually produced and introduced to the market. These new technologies include Bio-Hybrid, Bio-Hybrid electrified dual-clutch transmissions (eDCT), Bio-Hybrid Plug-In, and BEV (100% electric). The new hybrid technologies will start to be available by the end of 2024.

Stellantis Strengthening in South America

Stellantis is the leader in the three main markets in South America: Brazil, Argentina, and Chile. Last year, Stellantis total sales in the region surpassed 878,000 vehicles, with a 23.5% market share. The Company is the sales leader in Brazil with a 31.4% market share and maintains leadership in light commercial vehicle sales in South America, with a 28.6% market share. Fiat is the best-selling brand in Brazil and South America, and the Fiat Strada pickup is the best-selling vehicle in the country and the region.

With this investment, Stellantis will be increasingly prepared to design, develop, and produce modern cars in the region, while also expanding its business. In Argentina, for instance, the company acquired a 19.9% stake in Argentina Litio y Energía S.A., a significant step toward establishing a cluster of sustainable battery materials to meet the electrification goals outlined in its global plan.

In addition, with the acquisitions of companies Norauto and DPaschoal, Stellantis has become the largest auto parts distributor in South America and has plans to further expand its presence in the aftermarket segment.

About Stellantis

Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com. READ MORE

Excerpt from Ecoticias: However, America has just introduced the ultimate engine that outperforms all known fuels, including all zero-emission vehicles (ZEVs). Some have defined it as “the eco version of a polluting gas” or as “an improved version of alcohol”, but it goes far beyond that: we tell you all the details about the project that is going to change everything.

America has unveiled the “engine of the future”: No hydrogen, no ammonia, no electric

The world’s largest carmaker, Stellantis, operating under the 14 brands, which include Fiat, Peugeot, and Jeep – has, in a recent statement, revealed it will invest $6 billion into the South American market to build a generation of motors capable of running on either gasoline or ethanol.

This entailed investment is considered the largest of its kind in the region for automotive, and will effectively underwrite choice for more than forty new products and introduce a new line of “Bio-Hybrid” technologies, which combine electric and ethanol technology.

The most important part of the investment plan for Stellantis is the flex-fuel kind of internal combustion engines vehicles that are designed to use a blend of gasoline and ethanol. These engines can be designed in such a way that they can switch between the two fuels at will.

This fuel comes from Brazil, but America has developed it: A new engine to revolutionize the world

The new flex-fuel engines that Stellantis is to unveil will also have a hybrid plug-in hybrid added, therefore making a unique combination of the flexibility of the combustion engine, an electric motor, and a battery. This “Peugeot e-THP Bio-Hybrid” strategy’s objective appears to be to offer consumers the benefits of flex fuels.

Ethanol, a renewable fuel produced from agricultural crops such as sugarcane and corn, has been applied as a gasoline blend or as a stand-alone fuel in many regions of the world, especially Brazil.

Ethanol is a better fuel than gasoline, hence, it is commonly incorporated in the standard blend due to its environmentally friendly nature since it generates less carbon during burning. The investment in ethanol-powered engines as made by Stellantis as a means of exploiting the ethanol usage.

Stellantis’ plans, in detail: The first ethanol engines to be developed

Flex-fuel vehicles that can burn a mixture of gasoline and ethanol have been available for years, but the Stellantis’ new generation engines should be more efficient. According to the company, the new Bio-Hybrid engines will offer a range of powertrain options, including:

Bio-Hybrid: Integrates an internal combustion engine (involving a petrol detonation engine) with electrical drive.
Bio-Hybrid eDCT: Equipped with a bio-hybrid powertrain with an electric dual clutch.
Bio-Hybrid Plug-In: An accessory that is plugged into the car for recharging, which can also be drawn from the mains.

The termed power train configurations are said to be even more efficient in terms of fuel consumption and emissions than the conventional combustion engines, although they are still accompanied by the corresponding versatility and power needed by customers. Out of the total capital expenditure of $300 billion, $6 billion has been planned for South America to be invested.

What could be the first ethanol engine in history will be a step forward that will make it difficult for hydrogen (FCEVs) to advance. In fact, it is a breakthrough that Stellantis already announced several years ago, but that has now come to fruition, with America playing a leading role in the research of this fuel. We could even be talking about an improved version of methanol engines (don’t confuse the terms) and one that reduces emissions. READ MORE