Stellantis CEO says hybrids are a top priority for the U.S. market

The Stellantis sign is seen outside the Chrysler Technology Center, Jan. 19, 2021, in Auburn Hills, Mich. (AP Photo/Carlos Osorio, File)

DETROIT — Stellantis CEO Antonio Filosa said on Thursday that the automaker is focusing on hybrid production in the U.S. market, a shift from his predecessor’s focus on fully-electric models.

“We truly believe that hybrid is going to be one of the favorite powertrains in the U.S.,” Filosa said, speaking at a conference organized by Goldman Sachs.

He clarified that the automaker is focusing more on traditional hybrids rather than plug-in hybrid models, for which he doesn’t see the same demand.

Filosa highlighted the automaker’s Jeep Cherokee hybrid, and said Stellantis is trying to expand offerings across its lineup.

The CEO is trying to reverse steep market-share losses in the U.S. that contributed to the departure of his predecessor, former CEO Carlos Tavares, who abruptly left one year ago.

The new head of Stellantis, which has 14 brands including Chrysler, Ram and Jeep, began in his role about six months ago following a lengthy search to replace Tavares.

Filosa this week joined the CEO of Ford Motor in meeting with U.S. President Donald Trump to discuss his proposal to slash fuel economy regulations.

Loosening these regulations allows automakers to increase production of gasoline-powered models, and eases pressure on electric vehicle production.

Stellantis this year brought back its HEMI 8-cylinder engine on some models after dealers and customers pushed for it. There were 10,000 orders for the Ram with a HEMI V-8 the day of the announcement, Filosa said, and 50,000 orders within six weeks.

“There is a big mix improvement and volume improvement opportunity there,” he said.

Stellantis’ market share was at seven per cent in the U.S. in the first half of the year, Filosa said, and it crept up to eight per cent in the third quarter. He expects the automaker to gain more market share with upcoming vehicle launches.

(Reporting by Nora Eckert in Detroit and Giulio Piovaccari in Milan; Editing by Mike Colias and Franklin Paul)