Auto Maker Stellantis to Keep EV and Gas-Engine Operations as One, CFO Says

His comments came in response to a question about whether Stellantis, the owner of Jeep, Ram and more than a dozen other automotive brands, would consider a reorganization similar to the one revealed by

Ford Motor Co.

earlier this year.

Ford plans to create two separate internal divisions: one specific to gas-powered vehicles and another focused on electric vehicles. Ford Chief Executive

Jim Farley

said he believes the company’s legacy gas-engine business was holding it back and it needs to change.

“I don’t honestly see huge benefits to doing that,” Mr. Palmer said. “I think we need to manage the company and the assets we have through this transition.”

He added that the company, formed through the merger last year of Fiat Chrysler Automobiles NV and France’s PSA Group, needs to take into account all its stakeholders, including employees, and is open to looking for other ways to foster speed and entrepreneurial behavior within the corporate structure.

Auto makers are investing billions of dollars trying to catch up with

Tesla Inc.,

the market leader in selling EVs, and prove to Wall Street that they can make the technological shift while keeping their core profit-generating business of selling gasoline vehicles healthy through the transition. The challenge is spawning different approaches.

General Motors Co.

Chief Executive

Mary Barra

also has said she views the business as stronger for keeping the two operations together, even as she continues to get questions from analysts and investors about whether a separation would help unlock more value for investors.

Stellantis has committed to ramping up production of battery-powered vehicles, setting a goal of EVs representing half of its U.S. sales annually by 2030. It also comes as traditional auto makers have tried to capture the interest of investors, who are driving up the valuations of auto startups focused solely on making EVs.

Stellantis also on Thursday reported a 12% increase in global revenue in the first quarter over the prior-year period, despite a drop in vehicle shipments due to the continuing computer-chip shortage. Mr. Palmer attributed the boost in revenue to the company getting stronger prices for its vehicles, a rise that he said is helping to offset the higher costs of raw materials being driven by inflationary pressures.

“I think we’re very confident that we can continue to offset the raw material inflation headwinds with pricing,” Mr. Palmer said.

The newly formed Stellantis is reporting stronger earnings and other improvements since the tie-up, but the stock price remains a concern, Mr. Palmer said.

Stellantis’s shares are down 27% in the year to date. The stock fell 3.4% in morning trading Thursday. Mr. Palmer said the company’s financials alone merited more attention from investors.

“There’s clearly a disparity between our share price and our performance,” he said.

Stellantis said electric sales globally were up 55% in the first quarter to 60,000 vehicles, a period in which gasoline prices have been on the rise. The company additionally said this week it would invest $2.8 billion to retool two factories in Canada, with plans to add 650 engineering jobs and a new electric vehicle in the coming years.

In March, Stellantis and

LG Energy Solution

formed a joint-venture agreement to build a new $4.1 billion electric-vehicle battery facility in Windsor, Ontario, bringing with it an expected 2,500 jobs.