Speaking at the Bernstein Strategic Decisions conference, Stellantis CEO Carlos Tavares emphasized the challenges faced by automakers in the shift towards electric vehicles (EVs). Tavares stated, “You are going to see a huge shift of the supplier base. The sourcing will move from the Western world to the best cost countries.” He highlighted the need for automakers to sell EVs at the same price as equivalent petrol models, despite their production costs being 40% to 50% higher, necessitating cost-cutting measures across operations.
Tavares noted that the transition to EVs is hindered by affordability issues, as customers are reluctant to buy expensive EVs without government support. He explained, “The Western world consumer is telling the Western world government, okay, there is the global warming issue, fine, but if you don’t help me, I will not help you.”
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To address these challenges, Stellantis is focusing on multi-energy platforms that can support both EVs and hybrid electric-petrol vehicles. Tavares believes these platforms provide flexibility in product offerings and are crucial in facing uncertainties in the market.
In a bid to offer more affordable EV options, Stellantis is set to launch a Jeep model in the U.S. priced below $25,000. This follows the successful launch of the Citroen e-C3 EV in Europe, priced at 20,000 euros ($21,600). Additionally, Stellantis’ joint venture with Leapmotor will offer the T03 model in Europe for less than 20,000 euros.
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Regarding potential mergers and acquisitions (M&A), Tavares stated, “If an opportunity comes, we will of course consider it, but we have to be fit at the moment where that opportunity is passing by.” He emphasized the importance of maintaining Stellantis’ strong business position while remaining open to strategic opportunities.
