The maker of Jeep SUVs and Ram pickup trucks is looking to get aggressive as a venture capitalist to find the people and technologies that can help it achieve its mission toward clean, safe and affordable mobility.
Stellantis NV has launched Stellantis Ventures, a corporate venture fund with $328 million (300 million euro) announced last month as a part of its Dare Forward 2030 strategy. The allocation is devoted to help accelerate the work of entrepreneurs, another pivot toward creative collaboration amid a transformation seeking to rewrite the narrative of the legacy automaker, improve investor sentiment and better serve customers.
"We are moving fast in our transformation to a mobility tech company while reimagining the future of mobility for generations to come," Ned Curic, Stellantis chief technology officer, said in a statement. "The market is changing, the technology is changing, and the way we relate to our customers is changing. Stellantis Ventures will accelerate our transformation as we adopt new technologies developed by innovative startups, while fostering their growth potential."
Stellantis Ventures is an efficient way to support early and later-stage technology partnerships and acquisition, according to the company, which expects to accelerate integration of the startups into the company to months from years. The work is focused around sustainability, competitiveness and in-vehicle technology as well as vehicle marketing, sales and finance.
The company is looking to find cost savings to make up for the 40% to 50% additional costs electric vehicles have over their conventional counterparts. It also wants to be net-zero in carbon emissions by 2038.
Stellantis joins others in the industry that for years now have had a devoted entity for identifying, developing and partnering with innovative firms. General Motors Ventures LLC launched in 2010. Toyota Ventures LLC was founded in 2017.
Having a venture fund helps the companies to keep a pulse on technological advancements, said Stephanie Brinley, principal automotive analyst of the Americas for IHS Markit Ltd.
"It's a tool in the toolbox that can get them inside and access new technologies being developed in really early stages," she said. "What we're seeing with Stellantis is the merged company has a little more flexibility and bandwidth and ability to participate in this."
Despite only launching its venture fund now, Stellantis hasn't been out of the investment game completely. Predecessor Fiat Chrysler Automobiles NV in January 2021 announced an investment into Archer Aviation Inc., a California-based electric vertical take-off and landing aircraft startup. Stellantis has lent Archer its supply-chain relations, material capabilities and engineering know-how in hopes of advancements in longer-range and lightweight batteries and better management systems.
Stellantis in November also said it's supporting Massachusetts' Factorial Inc. in the development of solid-state batteries that could offer longer electric-vehicle range and safety benefits. A Series D funding round in January totaled $200 million led by Stellantis and Daimler AG's Mercedes-Benz.
With its venture fund, Stellantis is looking for advantages in advanced propulsion, transportation and autonomous vehicles, electronics, advanced materials, connectivity and advanced software, advanced manufacturing and supply chain, sales and financial technology, virtual reality and non-fungible tokens, and sustainability.
"We will identify the best startup potentials to accelerate the innovation potential in our company," CEO Carlos Tavares said during the Strategy Day presentation. "We intend to be a strategic investor aiming to adopt their advanced technologies."
