Carlos Tavares, CEO of Stellantis, the automotive group overseeing brands like Jeep, Ram, and Fiat, issued a warning to fellow automakers, stating that electric vehicles (EVs) must not only be affordable but also profitable to avoid impending challenges. Tavares stressed the necessity of reducing costs to make EVs more accessible to middle-class consumers.
Speaking at the Goldman Sachs conference, Tavares highlighted Stellantis' commitment to lowering EV prices, citing the upcoming Citroen e-C3 priced at around $25,000 as an example of their efforts. He emphasized the importance of cost reduction and noted the company's proficiency in this aspect.
Tavares pointed to Stellantis' current lineup of electrified vehicles, stating that they are financially viable both in the United States and Europe, with EV margins nearing those of internal combustion engine (ICE) vehicles. He also mentioned the competitive landscape in Europe, where Stellantis is “fighting head-on” with Tesla for EV sales.
Referring to Stellantis' recent collaboration with Leapmotor, Tavares expressed confidence in delivering profitable EVs in Europe. He highlighted the cost competitiveness achieved through the partnership, emphasizing a sourcing point that is 30% more cost-effective than alternatives in the Western world.
Tavares cautioned that automakers unable to generate profits with EVs may face challenges in the near future. Stellantis aims to accelerate its EV offensive, introducing new electric models from brands like Ram, Jeep, and Fiat. Under its Dare Forward 2030 plan, Stellantis targets 100% electric sales in Europe by 2030 and anticipates approximately 50% EV sales share in the United States.
Fiat, a Stellantis brand, plans to launch the new Fiat 500e early next year, positioned as one of the most affordable EVs on the market. Ram's first electric pickup, the Ram 1500 REV, is set to roll out in late 2024, competing with electric trucks from Ford, Rivian, and Tesla. Jeep, another brand under Stellantis, is preparing to launch its first EVs in the United States next year, including the Jeep Recon and Wagoneer models. The company is poised to make significant strides in the rapidly evolving EV market.