AMSTERDAM and MUNICH - Stellantis N.V. (NYSE:STLA) and Infineon Technologies AG (OTC:IFNNY) announced a collaboration focused on enhancing the power conversion and distribution in electric vehicles (EVs). The partnership includes significant supply and capacity agreements for Infineon's PROFET™ smart power switches and silicon carbide (SiC) CoolSiC™ semiconductors.
The collaboration aims to advance Stellantis' electric vehicle power architecture, aligning with the company's ambition to provide clean, safe, and affordable mobility. Infineon's PROFET™ smart power switches are set to replace traditional fuses, streamline wiring, and allow Stellantis to pioneer intelligent power network management in its vehicles. The SiC semiconductors are expected to standardize power modules across Stellantis' EVs, enhancing performance and efficiency while reducing costs.
In addition, the partnership will see the use of AURIX™ microcontrollers in the STLA Brain zonal architecture, which is part of Stellantis' software-defined vehicle strategy. A Joint Power Lab is also being established to define future scalable and intelligent power architectures.
Maxime Picat, Stellantis Chief Purchasing and Supplier Quality Officer, highlighted the strategic importance of securing semiconductor solutions to support the company's electrified future. Peter Schiefer, President of Infineon’s Automotive Division, emphasized Infineon’s role in driving decarbonization and digitalization of mobility through dependable electronics that improve car efficiency and user experience.
Infineon, with its market-leading position in automotive microcontrollers, is prepared to meet the market demand for automotive semiconductor solutions. The company's production capacity is backed by the world's most cost-competitive SiC fab in Malaysia, a new Smart Power Fab in Dresden, Germany, and a joint venture with TSMC and partners.
Stellantis, a major global automaker, is executing its Dare Forward 2030 strategic plan, aiming to become a carbon net zero mobility tech company by 2038. Infineon is a leader in power systems and IoT, driving decarbonization and digitalization with its products and solutions.
This news is based on a press release statement from Stellantis N.V. and Infineon Technologies AG.
In other recent news, Stellantis faced a significant decline in its third-quarter shipments and revenues, with CFO Doug Ostermann reporting a 20% drop in shipments to 1.15 million units and a 27% decrease in revenues to €33 billion. Despite these challenges, Stellantis is committed to a multi-year product transition and a new partnership with Leapmotor (HK:9863) to enhance profitability and market adaptability. In the political landscape, former U.S. President Donald Trump, in his campaign, threatened Stellantis with a 100% tariff on the company's vehicles if it attempts to relocate jobs from the United States to Mexico. These are recent developments that have emerged, focusing on the automotive giant's financial performance and potential political implications.
The company is reducing U.S. dealer stock from 430,000 units to 330,000 units by November 2024, and is targeting over 500,000 annual sales by 2030 through its partnership with Leapmotor. Stellantis maintains its full-year guidance of 5.5% to 7% AOI margins and expects industrial free cash flow of negative €5 billion to negative €10 billion. The company is also undergoing a portfolio transition to introduce appealing products and reduce platform complexity, adjusting MSRPs for some 2025 models to enhance consumer transparency and reduce reliance on incentives. It is important to note that these developments and plans are part of Stellantis's strategy to navigate through its current challenges and prepare for a stronger 2025.
InvestingPro Insights
As Stellantis N.V. (STLA) forges ahead with its electric vehicle strategy through partnerships like the one with Infineon Technologies AG, investors might find additional context from InvestingPro's data and tips valuable.
According to InvestingPro data, Stellantis has a market capitalization of $40.68 billion USD, reflecting its significant presence in the global automotive industry. The company's P/E ratio of 2.91 suggests that it's trading at a relatively low earnings multiple, which could be attractive to value-oriented investors considering the company's push into EV technology.
An InvestingPro Tip highlights that Stellantis "holds more cash than debt on its balance sheet." This strong financial position could be crucial as the company invests in new technologies and partnerships to support its EV ambitions. Additionally, another InvestingPro Tip notes that Stellantis "pays a significant dividend to shareholders," with a current dividend yield of 8.88%. This may appeal to income-focused investors while the company transitions its product lineup.
It's worth noting that InvestingPro offers 12 additional tips for Stellantis, providing a more comprehensive analysis for investors interested in the company's prospects as it navigates the shift to electric vehicles.
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