a Carlos Tavares decisive and outspoken the one who launched a strong criticism of the institutions, with the aim of protecting his sector. According to the CEO of Stellantis, who spoke at a Reuters conference, the substantially imposed transition to electric to car manufacturers, who are struggling to absorb this change.
According to Tavares, the main reason would be in the production costs, which have risen, according to him, as much as 50% compared to vehicles with combustion engines. A cost that cannot be paid by the end customer: “There is no way to pass on 50 percent of the additional costs to the final consumer because most of the middle class will not be able to pay“.
The electric and electrified range of Stellantis
The criticism of the taxation is clearly aimed at Europe, which has set increasingly restrictive emissions limits, and at the countries that have already sales bans for petrol and diesel cars. Recently Stellantis also presented a plan (which we had described to you here) with important investments to support the transition to electric, putting on the plate 30 billion euros.
But the CEO is confident that these will be difficult times for the sector, with concrete financial risks: “Over the next five years we will have to digest 10% productivity per year in an industry used to delivering productivity improvements of 2 to 3%. The future will tell us who will be able to digest this and who will fail.“.