Jeep Plans Line of Absolutely Electrical SUVs

Jeep will nonetheless promote gasoline-engine SUVs, however the transfer is meant to present patrons the choice of buying an emissions-free model.

Different well-known Detroit manufacturers, like Ram, Chrysler and Dodge, may even shift extra of their lineups to electrics as Stellantis, a automotive firm shaped final 12 months by way of the merger of PSA Group and Fiat Chrysler Vehicles NV, revealed new targets to scale back carbon emissions and increase electric-vehicle gross sales.

“The competitors is fierce, and we’re able to tackle the struggle for the highest spot,” Mr. Tavares stated.

As governments globally tighten restrictions on tailpipe pollution, main automotive producers like Stellantis are below stress to shift away from the combustion-engine automobiles which have lengthy dominated the automotive enterprise.

The U.S. and different international locations abroad are additionally attempting to hurry the transition by providing tax credit to patrons that decrease the upper upfront prices of buying an electrical car.

Mr. Tavares has been outspoken on the necessity for presidency incentives, arguing that the prices of growing and constructing battery-powered fashions are nonetheless a lot larger than standard gas-powered automobiles and vans.

By 2030, the corporate stated it needs half of its gross sales within the U.S. and all of its gross sales in Europe to be totally electrical fashions.

Now one of many world’s largest auto producers, Stellantis offered 6.5 million automobiles final 12 months by way of its assortment of automotive manufacturers, which additionally embrace European names like Peugeot, Alfa Romeo and Maserati.

The corporate’s inventory declined practically 8% Tuesday, falling extra sharply than the broader market.

Mr. Tavares, the previous PSA Group chief who has led Stellantis for a bit greater than a 12 months now, is racing to meet up with

Common Motors Co.

GM -4.71%

,

Volkswagen AG

VOW -0.55%

and different rivals which have lately taken daring steps to transition their world operations to electrical automobiles. Conventional auto makers are additionally confronting stiffening competitors from

Tesla Inc.

TSLA -0.70%

and different new electric-vehicle startups like

Rivian Automotive Inc.

which have captured the minds and wallets of traders.

Mr. Tavares has beforehand stated Stellantis plans to spend greater than $35.5 billion on electrical automobiles by way of 2025, a determine that’s roughly on par with its rivals.

On Tuesday, he supplied a extra detailed have a look at the corporate’s longer-range plans within the U.S. and abroad, together with outlining new monetary targets. By 2030, Stellantis stated it goals to greater than double income globally to $337 billion, whereas sustaining double-digit working margins by way of all the interval.

Moreover, Stellantis plans to additional diversify into new enterprise strains and increase income abroad, together with in China the place each PSA and Fiat Chrysler have lengthy lagged behind rivals in gross sales.

Stellantis posted robust income and revenue in 2021, however it’s nonetheless closely depending on North America and Europe for its earnings.

Mr. Tavares stated he’s aiming for a greater geographical stability, partially by elevating the corporate’s luxurious manufacturers in China.

North America and Europe presently generate about 85% of the corporate’s world income. By 2030, he goals for these two areas to be a smaller share—about 72%—because it grows gross sales and share in different markets.

Write to Christina Rogers at christina.rogers@wsj.com