Carlos Tavares, CEO of Stellantis, has confirmed the automotive giant’s strong backing of the European Union’s 2035 ban on internal combustion engine (ICE) vehicles, despite the hurdles of launching electric vehicles (EVs) and gaining consumer acceptance. Speaking at a media roundtable during the Paris Auto Show, Tavares emphasized that Stellantis is not only prepared for the European transition to EVs but also ready for stricter emissions and fuel economy regulations in the United States.
“We want to be on the right side of history,” Tavares stated, adding that Stellantis is not requesting any delays in the transition, as delaying would imply downplaying the severity of climate-related disasters such as fires, floods, and hurricanes. Drawing from a personal experience, he shared how his daughter had to drive through a forest fire in Portugal, highlighting the urgency of addressing climate change.
Tavares acknowledged the difficulties Stellantis faces in the shift to electrification. The company is investing approximately $15 billion annually in its EV lineup and aims to offer 40 electric models in Europe by the end of 2024. However, the U.S. market poses a significant challenge, with Stellantis experiencing a drop in sales over the first nine months of the year, compounded by large inventories of popular brands and consumer hesitation to pay a premium for EVs amid concerns over charging infrastructure.
Speaking to The Detroit News, Tavares said, “You insert an additional cost of 40% in a system, which is very constrained, obviously it creates a lot of tension, and obviously it creates anxiety… We are all facing the same reality. And my people, they also have anxiety, but we are dealing with it. We are dealing with it, and everybody needs to take a fair share and deal with it.”
