Without cheap electric cars, Stellantis foresees the collapse of the car market

Stellantis is one of the automotive groups that speaks the clearest in relation to electric mobility. Its CEO, Carlos Tavares, has done it on several occasions, and now also the manufacturing director Arnaud Deboeuf at an event held in France, at the group’s facilities in Tremery. The manufacturer is not against the electrification of the car industry and in fact has one of the most complete offers on the market. But he is critical in how he gets to her. In this case Debouef asserts that “If electric cars are not sold cheaper, the market will collapse.”

The Stellantis Group aims to reduce the production costs of its electric vehicles by 40% by 2030 has assured its manufacturing director. For it, need to manufacture in-house some of its core components and also put pressure on suppliers to lower the price of your products.

After approving the European Parliament the ban on sales of combustion vehicles in 2035 and being one of the largest automobile groups in Europe, it has warned that the industry is doomed unless electric vehicles reduce their prices. “If electric vehicles don’t get cheaper, the market will collapse,” Deboeuf said, adding that this is precisely “the big challenge.”

Stellantis plans to introduce more than 75 all-electric models during this decade transforming some of its car plants located in France so that they only manufacture electric vehicles. While the company is investing heavily in this transformation, it is also committed to maintaining strong profitability, based on the expansion of its business lines towards added services and softwarein addition to the benefits that some of its premium models leave.

Virtually all manufacturers are increasing the sales prices of their electric vehicles, which maintain a general upward trend. The increase in the cost of raw materials is making some models unprofitable, said Ford’s chief financial officer, John Lawler, in a conference with his investors. With EU lawmakers in favor of giving up fossil fuels, most manufacturers will switch to producing only electric vehicles in the next 10 years.

Carlos tavares bad cop suppliers electric cars
Carlos Tavares maintains his course towards electrification and also his criticism of the politicians whom he accuses of not having noticed the consequences for manufacturers and their suppliers.

While Stellantis has said it will comply with the regulations, Carlos Tavares, its CEO, has also been critical of politicians’ decisions, accusing them of “not caring” if automakers have enough raw materials to support the change.

Increased demand for batteries for electric vehicles between 2024 and 2027, the period before the facilities now being built in Europe come online, will benefit Asian producers and “put at risk” cell production in the WestTavares said during a tour of the factory in Metz, France during a trip intended to show how the automaker is transforming some of its French combustion engine and gearbox plants to make electric vehicle parts.

Stellantis is setting up five large battery factories in Europe and the United States, where it will produce 400 GWh of battery cells per year in 2030. Tavares added that he does not rule out buying a lithium mine to ensure the supply of this fundamental raw material. He is also considering to what extent he could produce your own energy to cushion price increases in the event of supply disruptions as a result of the Russian invasion of Ukraine. “We have significant areas where we could put solar panels,” she said.

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