Stallantis CEO notes EV cost burden is too much for automakers

Stellantis NV CEO Carlos Tavares said that external pressure on automakers to accelerate the shift to EV is too much. In a sing that his company did not adequately prepare itself for the EV revolution, he warned that this fast shift to electrify could threaten jobs and vehicle quality.

In an interview at the Reuters Next Conference, Tavares went on to say that costs are currently beyond the limits of what the auto industry can sustain. For instance, he brought up that electrification brings 50% additional costs compared to a traditional ICE vehicles.

However, manufacturers such as Stellantis cannot pass on that 50% cost to the consumer, as the average middle-class family could not afford the car.

The other issue revolves around quality. The faster an auto manufacturer produces something, the less time for testing and quality control. This is a concern, as governments and other outside forces force auto manufacturers to develop EVs quickly.

To combat this push, Stellantis is looking to improve productivity by 10 per cent per year. The increased productivity will allow for a greater lead time for development.

Finally, Tavares did not mince words when it came to government intervention. He noted that government should focus on the energy sector rather than the automotive industry regarding climate change. He further stated that they should be investing heavily in EV charging infrastructure.

Source: Reuters

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