Stellantis Revises South America Strategy to Combat Chinese Competition

Stellantis NV is revising its technology and electrification strategy for South America to counter the growth of Chinese competitors. South America Chief Operating Officer Herlander Zola stated that the company must adapt to a market where Chinese automakers provide advanced technology at competitive price points, noting that the Jeep brand has particularly suffered from this offensive.

Market shifts are most evident in Brazil, where Jeep has struggled to renew its product line, and in Uruguay, where electrified vehicle adoption jumped from 2% to 30% in a single year. In response, the company is evaluating alternative power sources, including sugarcane ethanol-powered vehicles and a flex-fuel version of range-extender technology developed with partner Leapmotor.

Stellantis plans to launch the Avenger small SUV as an initial step to recover lost market share. The company expects to present a fully revised technological road map for the region later this year.