The Stellantis car company is worried about the effects of the ban on internal combustion engines, which could hit the entire car market hard.
–
The upcoming ban on the sale of new cars with internal combustion engines, which should probably happen in Europe as early as 2035, should save the climate, but it will be a big challenge for the car industry and the entire market, which may even become devastating. Especially if electric cars don’t become cheaper by then, as warned the chief production director of the Stellantis car company.
Specifically, Stellantis, one of the world’s largest car manufacturers, is said to be planning to cut the price of electric cars by up to 40% by 2030, according to Bloomberg, Arnaud Deboeuf, chief manufacturing officer of Stellantis, announced during a speech at the Tremery plant in France.
–
–
The way to reduce prices should be to manufacture some components in-house, but at the same time, the company plans to put more pressure on suppliers to reduce product prices. If electric cars don’t become cheaper, “the market collapses,” Deboeuf should have warned. According to him, this is now a big challenge.
At the same time, Stellantis, which includes the brands of the original PSA and FCA concerns, plans to launch over 75 purely electric models during this decade. Electrification will also include the conversion of some plants purely for the production of electric cars.
So the company is about to invest quite a lot in its transition to an electric future, but at the same time, it believes that it will be able to maintain a strong return on investment. Part of the income could be payments for software and services, or for premium models.
–
–
The plans to reduce the prices of electric cars therefore look promising, however, according to colleagues from Bloomberg, the trend is rather the opposite. The increase in the price of precious metals, materials, inflation and the gradual reduction of incentives to switch to electromobility forced many manufacturers of electric cars to increase their prices. In the case of Tesla, prices were supposed to rise by an average of even up to 6,000 dollars for this month alone. But not even the Ford and Rivian companies avoided rising prices overseas.
However, car companies are also concerned about the availability of batteries, especially in Europe. Above all, between 2024 and 2027, when car companies will be intensively preparing for the transition to pure electromobility, their own battery production plants will probably either not be completed or will not offer sufficient capacity. Thanks to this, the Western automobile industry could lose its strength and Asian companies could come to the fore.
–
