Wednesday, June 29, 2022
News EV 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.

Stellantis will Work on Solid-State Batteries with Factorial Energy

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.

Trending Now

New Vehicle Quality Took a Hit in the Last Year

The 2022 J.D.Power Initial Quality Study found an 11% increase in problems per 100 vehicles on average Buick is the best-ranking brand and...

The Ford F-150 Lightning is Recalled Over a Non-Compliance Issue

The Tire Pressure Monitoring System was not programmed correctly at the factory This could lead to an accident due to improperly inflated tires ...

Ford Unveils its Electric SuperVan in Goodwood

Ford promised it would bring something commercial and capable to this year's Goodwood Festival of Speed in England, and it delivered in the form...

Confirmed: More than 800 Horsepower for the Polestar 5

Several manufacturers will be making the most of their presence at the Goodwood Festival of Speed this week, and Polestar is among them. Indeed,...

Hyundai Unveils the Ioniq 6 Ahead of Launch in July

The Ioniq 6 takes most of the styling cues found in the Prophecy concept Sustainable materials are used throughout the interior The technical...
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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.