Tuesday, May 21, 2024
NewsEV Cost Burden Too Great According to Stellantis CEO

EV Cost Burden Too Great According to Stellantis CEO

Competition from smaller EV start-ups and government policies could lead to quality issues

  • Pressure on automakers to develop EVs could bring major consequences.

  • One consequence could be major job losses.

  • The timelines are extremely stringent.

The external pressure put on global automakers to develop and deliver more EVs in the next decade or so is excessive. Stellantis NV Chief Executive Carlos Tavares believes that there are huge risks involved in fast-forwarding electric vehicles on top of the still higher costs to do so.

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Of the involved and potential risks, Tavares says that automakers require time to engineer and test these new technologies. Stellantis will boost productivity at a pace far higher than industry norms. From the typical 2-3%, they will run at a staggering 10%. This will be one way to avoid job cuts but it represents a huge cost increase.

“What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle,” Tavares said to Reuters. “There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay.”

As some countries have announced the ban of new ICE sales as early as 2030, speed is of the essence. This could lead to quality issues and potentially numerous other related problems. These circumstances could snowball into lower profit margins and eventually to thousands of job cuts.


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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai


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