Tavares, without incentives too expensive electric cars

“Without incentives, electric cars are still too expensive for the middle class. The challenge is how quickly we can reduce costs to sell them even without them.” This was stated by Carlo Tavares, CEO of Stellantis, commenting on the 2022 accounts. Tavares recalled that in Germany, as soon as the incentives were suspended, the market collapsed. “We are satisfied with our electric car sales and have not yet started the offensive in the US. We are the company with the fastest growth rate of BEV sales, we have good models, our technology is appreciated,” he added he.
“Some of our competitors have cut prices for tactical reasons. I guess they did it because they are not happy with their electric sales results. We have done +41% in Europe alone and we will start in the US this year,” said Tavares , which is not worried about the price cuts of companies such as Tesla and Ford. Tavares recalled that Stellantis today has 23 Bev models on the market, that 9 new launches will be made in 2023 and that at the end of 2024 there will be 47, double that. In North America, Tavares said electrification “will be a challenge,” but the manager said he was “very confident.” He also continues the plan for gigafactories in Europe. This year, the first will be operational in Douvrin, France. “In 2023 the batteries for the tests will be produced, and from the beginning of 2024 it will be operational,” said Tavares. The group’s second European gigafactory will be built in Germany, the third in Italy, in Termoli. “The semiconductor situation is improving – he continued – we still have some problems with a couple of suppliers. Production is going well even if it’s not yet at perfect levels. We still don’t produce all the cars we would like, but we have a significant order book The offer is back. We have improved the profitability of our Asia business significantly. Stellantis in China is refocusing its business. Adjusted operating profit increased by 48%, an improvement not due to volumes but to value.” added Tavares who explained that the intention is to bring brands such as Jeep, Alfa Romeo and DS which are more profitable to the Chinese market.

The Euro7 regulation in the part concerning emissions “is useless because it is too expensive and does not bring benefits for the environment and health. It is just a distraction” he added. According to Tavares, on the other hand, the part relating to the pollution produced by tires and brakes is positive. “Stellantis doesn’t need low cost brands, but accessible models. I have many core brands like Fiat and Citroen that have a clear positioning”, added Tavares, answering those who asked him if the group needs a lower cost brand like Dacia to increase volumes.