Stellantis, for Carlos Tavares the costs of electrification are beyond the limits


The CEO of Stellantis, Carlos Tavares , returns to talk about the electrification process of the automotive world, launching an alarm on the consequences that could bring a & # 39; forced acceleration imposed by institutions and investors. More specifically, the number one of the automotive group highlighted that external pressures on car manufacturers to accelerate the transition to electric vehicles put jobs and quality at risk; of vehicles.

Tavares then also highlights the economic aspect. Institutions and investors are calling for an & # 39; acceleration of the transition to electric vehicles but the costs are & quot; beyond the limits & quot; of ci & ograve; that the auto industry can support.

There & ograve; that & egrave; been decided & egrave; to impose electrification on the automotive industry which involves 50% additional costs compared to a conventional vehicle.

For the CEO it is not; It is possible to pass this additional cost on to the final consumer as most of the middle class would not be able to pay.

Car manufacturers could charge higher prices. high and sell fewer cars, or accept lower profit margins. These paths both lead to cuts.

The CEO of Stellantis then explains that the car manufacturers they need more & ugrave; time to test new technologies. Accelerating the transition would only be counterproductive because & eacute; porter & agrave; to many types of problems including that of quality & agrave; of cars. Tavares then added that Stellantis aims to avoid cuts by increasing productivity at a much faster rate; faster than the industry standard.

In the next five years we will have to digest 10% more; of productivity per year … in an industry that is accustomed to an improvement in productivity 2 to 3%.

An important effort. Precisely for this reason, the CEO also states that & quot; only the future will tell us; who will be able to deal with this situation and who will fail & quot ;. For Tavares, however, the situation is; very clear and that is; that external pressures are putting the automotive industry to the limit.

It is not; the first time that Carlos Tavares points a finger at the & quot; external pressures & quot; that would be forcing the transition to mobility; electric. In May 2021, the number one of Stellantis affirmed & ograve; that the switch to electric vehicles had been a top-down decision and imposed with “ brutality '' by governments and not decided by car manufacturers.

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