Jeep Plans Line of Fully Electric SUVs

Jeep will still sell gasoline-engine SUVs, but the move is intended to give buyers the option of purchasing an emissions-free version.

Other well-known Detroit brands, like Ram, Chrysler and Dodge, will also shift more of their lineups to electrics as Stellantis, a car company formed last year through the merger of PSA Group and Fiat Chrysler Automobiles NV, revealed new targets to reduce carbon emissions and boost electric-vehicle sales.

“The competition is fierce, and we are ready to take on the fight for the top spot,” Mr. Tavares said.

As governments globally tighten restrictions on tailpipe pollutants, major car manufacturers like Stellantis are under pressure to shift away from the combustion-engine vehicles that have long ruled the car business.

The U.S. and other countries overseas are also trying to speed the transition by offering tax credits to buyers that lower the higher upfront costs of purchasing an electric vehicle.

Mr. Tavares has been outspoken on the need for government incentives, arguing that the costs of developing and building battery-powered models are still much higher than conventional gas-powered cars and trucks.

By 2030, the company said it wants half of its sales in the U.S. and all of its sales in Europe to be fully electric models.

Now one of the world’s largest auto manufacturers, Stellantis sold 6.5 million vehicles last year through its collection of automotive brands, which also include European names like Peugeot, Alfa Romeo and Maserati.

The company’s stock declined nearly 8% Tuesday, falling more sharply than the broader market.

Mr. Tavares, the former PSA Group chief who has led Stellantis for a little more than a year now, is racing to catch up with

General Motors Co.

GM -4.71%

,

Volkswagen AG

VOW 0.37%

and other rivals that have in recent years taken bold steps to transition their global operations to electric vehicles. Traditional auto makers are also confronting stiffening competition from

Tesla Inc.

TSLA -0.70%

and other new electric-vehicle startups like

Rivian Automotive Inc.

that have captured the minds and wallets of investors.

Mr. Tavares has previously said Stellantis plans to spend more than $35.5 billion on electric vehicles through 2025, a figure that is roughly on par with its competitors.

On Tuesday, he offered a more detailed look at the company’s longer-range plans in the U.S. and overseas, including outlining new financial targets. By 2030, Stellantis said it aims to more than double revenue globally to $337 billion, while sustaining double-digit operating margins through the entire period.

Additionally, Stellantis plans to further diversify into new business lines and boost revenue overseas, including in China where both PSA and Fiat Chrysler have long lagged behind rivals in sales.

Stellantis posted strong revenue and profit in 2021, but it is still heavily dependent on North America and Europe for its earnings.

Mr. Tavares said he is aiming for a better geographical balance, in part by elevating the company’s luxury brands in China.

North America and Europe currently generate about 85% of the company’s global revenue. By 2030, he aims for those two regions to be a smaller percentage—about 72%—as it grows sales and share in other markets.

Write to Christina Rogers at christina.rogers@wsj.com