Stellantis may halt EV investments if sales don’t rise, warns CEO

Francesco Armenio
Carlos Tavares, CEO of Stellantis, has stated that the Group will not waste any more money if electric car sales do not increase.

Stellantis brands continue with the transition to electric vehicles with several launches planned for the future, including the recently announced Fiat Grande Panda. However, Carlos Tavares, the Group’s CEO, has explained that he will not continue to waste money on this technology if it does not prove to be profitable. Although the market share of electric cars continues to grow, the pace has been slowing down in recent months, which worries car manufacturers.

Stellantis: Carlos Tavares ready to stop investments in electric cars if sales do not increase

Stellantis Carlos Tavares

“There is concern because the European industry is not competitive in terms of price,” Tavares explained. “The Western consumer thinks this way: ‘there is the problem of global warming, but if you don’t help me, I won’t help you’,” referring to the lack of state incentives for electric cars.

Moreover, according to the Portuguese manager, hybrid cars are best suited to face the uncertainty of electric vehicles: “We are trying to anticipate what will happen in the world in the near future, but if the sales of electric cars do not increase, we will stop investing our shareholders’ money in these technologies.” According to forecasts, the demand for electric cars will be 100% in Europe and 50% in the United States by 2030, but if this is not the case, Tavares has stated that “financial resources will not be wasted.”

However, Stellantis will not give up on its goal of reaching zero emissions, but it will do so through other routes. Tavares reiterated once again the mistake of the European Union, as well as that of the United States, on the application of additional tariffs on electric cars: “China is becoming an important part of our business, but our response must not be defensive, but offensive. Only in this way can we overcome Chinese competition.” According to Tavares, protectionism should be avoided, and we should compete on equal terms with the competition: this is the only way to grow without harming the sector.