(Yicai Global) March 2 -- Stellantis is planning an asset-light business model in China to reduce fixed costs and boost revenue to EUR20 billion (USD22.1 billion) a year by 2030, the European car manufacturer said yesterday.

No further details on its promised ‘new’ China strategy were given in the firm’s "Dare Forward 2030" global agenda released yesterday. Globally, the Amsterdam-based company has set its sights on doubling yearly revenue to EUR300 billion (USD333.2 billion) with annual sales of five million units by 2030.

Stellantis, formed in January last year through the mega-merger of French auto giant PSA Group and Italian-American multinational Fiat Chrysler Automobiles, has two joint ventures in China whose sales have in recent years suffered a cliff-like decline. Last year the two companies shifted just 120,000 vehicles and as of March 2021 they had run up a deficit of CNY11 billion (USD1.7 billion).

The Amsterdam-based company, though, is determined not to give up on the China market. In January it said that it plans to take control of its JV with Guangzhou Automobile Group and hike its stake to 75 percent from 50 percent.

It is also in negotiations with Wuhan-based Dongfeng Motor to adjust the equity structure of their JV Dongfeng Peugeot Citroën, Yicai Global learned from people with knowledge of the matter. The proposal is for the shareholding split to remain 50:50, but that Stellantis should hold a 75 percent stake in Dongfeng Peugeot and Dongfeng Motor 75 equity in Dongfeng Citroën.

Stellantis plans to halve its carbon emissions by 2030 and achieve net-zero by 2038, according to the ‘Dare Forward 2030’ agenda. To do this, the company intends to have more than 75 pure-electric vehicle models on offer by 2030. It will only sell electric vehicles in Europe by 2030 and half of its car sales in the US will be zero emission by then.

Editor: Kim Taylor