For the CEO of Stellantis, the conversion of the automotive market to electric is too fast

Stéphane FiccaHardware & gaming specialistDecember 03, 2021 at 11:05 am61

The CEO of Stellantis reports an electrical transition that is a little too “fast”.

The latter has some reservations, particularly with regard to the changes imposed on the automotive industry.

Stellantis CEO worried about electric transition

Founded at the beginning of the year, Stellantis is a multinational automotive group which markets just under fifteen brands, including Peugeot, Fiat, Alfa Romeo, Citroën, DS, Jeep and Opel. A group led by Carlos Tavares and which works, like many others, towards the path of electromobility.

However, the CEO of Stellantis recently expressed some reservations about the transitions imposed on manufacturers by electrification. The electric strategy would thus be too expensive for many manufacturers, and certain conditions imposed in particular by the European Commission would be too heavy.

So many measures imposed on the various manufacturers which would add up to 50% additional costs to a conventional vehicle. “It is impossible for us to pass on 50% of additional costs to the final consumer, because most of the middle class will not be able to pay”, explains Carlos Tavares.

The CEO of Stellantis believes that manufacturers will have to make “sacrifices”, and in particular agree to lower their margins, so as not to inflate the price of their vehicles (too much). While the major authorities are campaigning for a rapid electric transition, Carlos Tavares indicates that this acceleration could quickly prove to be counterproductive.

Some vehicles could thus display serious quality concerns and other problems related to too rapid electrification. According to him, the industry could soon be pushed to its limits, which could cause the pure and simple disappearance of certain manufacturers.

Source: Clean Technica