Stellantis CEO: Cost of transition to electric vehicles exceeds auto industry's tolerance limit

On December 3, according to foreign media reports, electric drive has become a major development trend in the automotive field. Emerging car manufacturers and major fuel car manufacturers are investing heavily in electric vehicles. However, whether it is emerging car manufacturers developing electric vehicles or major fuel car manufacturers turning to electric vehicles, they are facing considerable cost pressure. Tesla, which is currently at the forefront of the electric vehicle field, has suffered losses for many consecutive years.

Carlos Taveres, CEO of Stellantis, the world's fourth-largest automaker, also said in an interview that the cost of transitioning to electric vehicles is beyond the current automotive industry's tolerance.

Carlos Tavares believes that electrification of the automotive industry will cause the cost of each vehicle to increase by 50% compared to traditional fuel vehicles, but they cannot pass the cost on to the end consumers, so most middle-class consumers cannot afford it.

Faced with the high cost of transitioning to electric vehicles, Carlos Tavares believes that traditional fuel vehicle manufacturers must either raise prices and reduce production, or accept lower profit margins to cope with the increased costs of transitioning to electric vehicles.

In an interview, Carlos Tavares also specifically mentioned that in the process of transitioning to electric vehicles, traditional fuel vehicle manufacturers face dual pressure from relevant institutions and investors, demanding that they accelerate the transition to electric vehicles.

Stellantis was formed by the merger of PSA Peugeot Citroen and Fiat Chrysler Automobiles (FCA). The merger was officially completed in January this year. It owns several automobile brands including Chrysler, Fiat, and Jeep.