According to Carlos Tavares, the rise in car prices due in particular to their electrification could make them inaccessible to a large number of people. Reducing costs and maintaining government aid are essential, according to the boss of Stellantis.
It will probably not have escaped your notice that the price of cars continues to rise, month after month. The reasons for this are multiple, ranging from the rise in raw material prices to the shortage of semiconductors and the cost of electrifying ranges for manufacturers. This inflation seems set to last. During the presentation of Stellantis’ “Dare Forward 2030” plan, which directs the group’s production towards cars 100% electric in Europe by the end of the decade, its general manager Carlos Tavares had warned of the impact of the switch to all-electric power imposed by the regulations on car accessibility. He details his thinking today. If manufacturers fail to reduce their costs enough to finance their electrification, “ the middle classes will no longer be able to buy new cars “, he warns.
Rising prices and ecology
According to Carlos Tavares, electric vehicles will remain more expensive than their thermal equivalents for a few years again. ” I am very concerned about accessibility. This is becoming more and more of a problem as inflationary pressure mounts “, he says. And, during his strategic presentation, the leader had underlined the possible ecological impact of this price increase. ” Unit selling prices will be higher due to electrification technologies. (…) If we make all-electric cars a reality but no one can buy them, we won’t solve the problem of global warming. (…) We have to market the products, which we do, but we also have to make sure that they remain affordable so that our customers can buy them. “, he had indicated.
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Essential government aid according to Carlos Tavares
One of the tools available to manufacturers is a reduction in costs in various areas, including distribution for Stellantis. ” Distribution costs are very high. As an industry we all need to finance electrification, and each region has a different regulatory framework. We are currently discussing this with the European associations of distributors. Discussions are progressing well “, explains the leader. By 2024, Stellantis plans to increase the number of its online sales by eight compared to the 100,000 orders in 2021, with the resulting closures of physical points of sale.
The Euro-American group also pleads for government aid to be maintained (ecological bonus, conversion bonus, etc.) for another five or six years, until production volumes bring down costs and enough charging infrastructure is available. so that thermal enthusiasts can switch in number to electric. Insisting on the responsibility of the States, in particular with regard to the social and industrial risks of a brutal transition towards “zero emissions”, Carlos Tavares says to himself ” ready to discuss it with anyone who wants to talk about it “.
Source: Stellantis, The Detroit Office
