Here are some recent developments in the automotive industry:

Stellantis Announces Over $5 Billion in U.S. Investments

Stellantis, the parent company of Fiat and Chrysler, plans to invest more than $5 billion in the U.S. This initiative includes a $1.2 billion investment in the Belvidere, Illinois plant to produce a new mid-size pickup truck, supporting 1,500 jobs. Additional funds will enhance facilities in Detroit, Toledo, and Kokomo, focusing on Dodge and Jeep models and vehicle engines. These investments aim to strengthen Stellantis’s U.S. manufacturing footprint and ensure stability for American workers.
FINANCIAL TIMES

Electric Vehicles and Heat Pumps See Continued Sales Growth

In 2024, U.S. sales and leases of electric vehicles (EVs) reached a record 365,824 in the fourth quarter, marking a 7.3% year-over-year increase. This growth was supported by tax incentives from the Inflation Reduction Act. However, the continuation of these incentives is uncertain as the current administration considers policy changes. Despite potential rollbacks, industry experts believe EV adoption will continue, though possibly at a slower pace. Similarly, heat pump sales have grown, surpassing gas furnace shipments for the second consecutive year, aided by tax credits and state-administered rebates.
WSJ

Aptiv Plans Company Split to Enhance Shareholder Value

Auto supplier Aptiv has announced plans to split into two companies: one focusing on electrical systems and the other on technology solutions. This move aligns with a growing Wall Street trend where companies break up to increase shareholder value. Aptiv’s electrical component business generated $800 million in EBITDA, while the tech segment produced $2.3 billion in 2024. A successful split could potentially revalue Aptiv’s stock by up to 90%. However, such breakups require strong business execution and growth to reassure investors.