Wednesday, July 17, 2024
NewsStellantis to Commercialize $25,000 US EV in North America

Stellantis to Commercialize $25,000 US EV in North America

Stellantis’ aspirations for affordable US EVs at $25,000 collide with UAW demands, casting doubt on realization.

 

  • Stellantis CEO aims for a $25,000 price point for affordable US electric vehicles.

  • UAW’s demand for improved worker benefits clashes with Stellantis’ cost-cutting efforts.

  • Contractual disagreements raise uncertainties about Stellantis’ $25,000 EV goal amid market demands.


 

The CEO of Stellantis, Carlos Tavares, has recently underscored the importance of reaching a $25,000 price point for making electric vehicles (EVs) affordable in the US market. Tavares stressed that achieving this pricing is critical for securing Stellantis’ long-term manufacturing prospects in the US and sustaining a viable market for EVs among the middle-class demographic. He emphasized the need to engage in discussions with the United Auto Workers (UAW) union to formulate strategies for developing sustainable and profitable EVs within this price range.

Jeep Avenger | Photo: Jeep

However, Stellantis’ path toward realizing this objective appears to be encountering challenges stemming from conflicts with the UAW. The company’s efforts to streamline fixed costs to enable the production of more budget-friendly EVs are conflicting with the UAW’s appeals for enhanced wages and improved benefits for workers. Negotiations between Stellantis and the UAW are reportedly facing significant obstacles.

Jeep Avenger | Photo: Jeep

President of the UAW, Shawn Fain, expressed his discontent, asserting that Stellantis’ cost-cutting approach has led to plant closures and negative repercussions for local communities. Fain criticized the company’s business model and its feasibility in achieving the $25,000 target. He posited that until Stellantis addresses fundamental business concerns, realizing the target price for affordable EVs remains uncertain.

2024 Jeep Avenger EV | Photo: Jeep

Fain’s discontent was palpable during a live broadcast, where he symbolically discarded Stellantis’ proposals, conveying his frustration with the company’s perceived disregard for worker well-being. The UAW president accused Stellantis of seeking stricter attendance rules, reduced healthcare coverage, and other concessions that he believes undermine the welfare of the workforce.

Jeep Avenger | Photo: Jeep

The existing four-year agreements between the UAW and Stellantis, along with other prominent automakers like General Motors and Ford Motor Company, are scheduled to lapse on September 14. This contractual impasse raises questions about the feasibility of Stellantis’ aspirations to launch an accessible $25,000 EV in the US market.

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At present, the US market does not offer any EVs priced at $25,000. The most economical option is the outgoing Chevrolet Bolt EV, priced at $27,495, inclusive of shipping charges.

Jeep Avenger | Photo: Jeep

While Stellantis faces hurdles in its US endeavors, the company is gearing up to introduce two budget-friendly EVs in the European market. Priced at approximately 25,000 euros (equivalent to around $27,300), these models are anticipated to cater to the growing demand for cost-effective electric mobility. The introduction of the Citroën e-C3 is planned for early 2024, followed by a Fiat Panda-inspired model, which is slated for unveiling in July 2024.

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