Updates headline, share movement in paragraph 6, Reuters exclusive in paragraph 14, details on product reveals in paragraph 17, and financial details in paragraph 23

By Nora Eckert, Giulio Piovaccari and Gilles Guillaume

AUBURN HILLS, Michigan, May 21 (Reuters) - Stellantis STLAM.MI on Thursday laid out a 60 billion euro ($70 billion) strategy that marks a shift under new CEO Antonio Filosa, combining a wave of new partnerships, a sharper focus on core brands and a push to better monetise excess factory capacity.

The five-year investment, which includes 60 new models by 2030 - among internal combustion engine, hybrid and fully electric - underscores a break from the approach of former CEO Carlos Tavares, with Filosa more open to external collaboration.

"The plan is grounded in reality... And it is designed to create a condition for profitable and sustainable growth," Filosa told investors at the group's capital markets day.

A string of announcements ahead of and during the event highlighted the new direction, with Stellantis expanding partnerships in both manufacturing and technology.

INVESTORS RESPOND CAUTIOUSLY

Investors reacted cautiously to the long-term nature of the targets and limited visibility on execution. After drops earlier in the day, New York-listed shares in the company were about flat in midday trading.

Fabio Caldato, a fund manager at Stellantis investor AcomeA, said investors were concerned about how quickly the group could deliver on its ambitions.

"Expectations were high, and the initial reaction primarily reflects execution risk and limited visibility regarding the implementation of the plan," he said, adding that there had been "no significant indication" on whether less strategic brands might be phased out.

GROWING RELIANCE ON PARTNERSHIPS

New partnerships include production tie-ups with Chinese groups Leapmotor 9863.HK and Dongfeng 600006.SS, as well as cooperation with Tata Motors TAMO.NS and its JLR unit in the U.S. In technology, the carmaker is working with firms such as Qualcomm QCOM.O, Applied Intuition and self-driving startup Wayve.

The strategy reflects a growing reliance on partners to share costs and accelerate development, particularly in expensive areas such as software and autonomous driving, while Stellantis is seeking to turn a long-standing weakness - excess manufacturing capacity - into a source of revenue by offering contract production to third parties, rather than bearing the cost of underused plants.

BRAND HIERARCHY AND AFFORDABLE OFFERINGS

Filosa set out a clearer hierarchy across Stellantis' 14-brand portfolio, the largest in the industry.

Around 70% of brand and product investment will be concentrated on Jeep, Ram, Peugeot and Fiat, along with its Pro One commercial vehicles division. Reuters first reported that the strategy would focus on these four brands.

Other marques, including Chrysler and Alfa Romeo, will be repositioned more regionally, with Lancia and DS shifting towards specialised roles under Fiat and Citroen.

The group's product push will centre on a broad range of more affordable models aimed at supporting volume growth, as well as profitability.

Brand leaders showcased several unreleased models in sessions with reporters, in an attempt to demonstrate how the company's new offerings will claw back market share from rivals. In a crowded design dome with glittering starlights on the ceiling, executives showcased dozens of vehicles, some that were unveiled with booming music and puffs of smoke.

"This is more than a product strategy. It's a profit strategy," said Tim Kuniskis, head of North America brands.

Jim Walen, a Stellantis dealer in Seattle, on Thursday said he was favoring plans for more affordable vehicles, especially a smaller pickup truck.

"I love it. It's spot on. It's exactly what the market needs," he said.

PLATFORM SHIFT

Stellantis said it would invest 24 billion euros in platforms, powertrains and technologies, while targeting 6 billion euros in annual cost cuts by 2028 compared with 2025.

It is targeting positive industrial free cash flow in 2027, increasing to 6 billion euros in 2030, and adjusted operating income margin of 7% by the end of the decade.

Stellantis on Thursday guided for revenue in North America to grow by 25% by 2030, with adjusted operating income margins of 8% to 10%, while Europe revenue is seen rising 15% with margins of 3% to 5%.

($1 = 0.8615 euros)