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Thursday, 02 December 2021 19:23

Stellantis CEO: EV Transition Costs ‘Beyond the Limits’ the Auto Industry Can Sustain

Written by Maria Merano, Teslarati

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Stellantis CEO Carlos Taveres said the pressure for legacy automakers to accelerate the shift to electric vehicles could threaten jobs and vehicle quality as traditional carmakers struggle to manage the higher costs of producing EVs. 

Taveres said the costs of transitioning to EV production are “beyond the limits” of what the current auto industry can sustain, in an interview with Reuters Next. He also highlighted the pressure legacy OEMs get from governments and investors to speed up the transition to EVs.
 
“What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle,” he said.” “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.”

 

He said traditional automakers would have to either charge higher prices and make fewer cars or accept lower profit margins to keep up with the additional costs of transitioning to electric vehicles. Taveres emphasized both paths lead to cutbacks. 

 

Many union leaders in Europe and North America agree thousands of people could lose their jobs if the auto industry transitioned to EV production. U.S. President Joe Biden is trying to tread the line between pushing legacy OEMs towards transitioning to EVs and providing job security in the auto industry. 

 

Biden has openly supported the Detroit Big Three’s---Ford, General Motors and Stellantis---EV goals, while puzzlingly ignoring Tesla’s role in the current electric vehicle revolution. Biden seems keen on only promoting automakers affiliated with unions in his bid to make the U.S. a powerhouse in the global electric vehicle market, all while ignoring...


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