Stellantis (formerly Fiat-Chrysler) CEO: Transition to Electric Vehicles will be complicated

Everyone living in 2022 is aware that the world is trying to move towards the future with a more sustainable source of mobility that mainly focuses on electric vehicles. However, the world’s no. 4 carmaker by production, Stellantis’ CEO Carlos Tavares believes that the mobility shift by electrification is not the best available option for a better future.

In a recent interview with some European news outlets, Tavares said that the strategy to eliminate the existence of combustion engines to make way for electric vehicles by the European Commission is a strategy that is a political choice associated with both environmental risks and social risks and that BEVs are not the technology chosen by the industry.

The Stellantis CEO in the joint interview by France’s Les Echos, Handelsblatt, Corriere della Sera and El Mundo mentioned, “What is clear is that electrification is a technology chosen by politicians, not by industry,” In addition, he stated that there are plenty of different alternative technologies that furnish cheaper and faster ways of reducing carbon emissions.

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While elaborating on his view, Tavares said, “Given the current European energy mix, an electric car needs to drive 70,000 kilometres to compensate for the carbon footprint of manufacturing the battery and to start catching up with a light hybrid vehicle, which costs half as much as an EV (electric vehicle),”

Additionally, he also criticized the European Commissions strategy of banning internal combustion engine cars by adding that the change from ICE vehicles to electric vehicles will put a lot of strain on the automobile manufacturers and suppliers and said, “The brutality of this change creates social risk,”

Furthermore, Tavares also touched on the subject of Stellantiss’ facing various struggles with the ongoing electrification. During the interview, the CEO subtlety modulated his promise of not shutting down the manufacturing plants in Europe while saying, “I generally hold on to the promises I make, but we also need to remain competitive,” He also detailed on the topic by mentioning the production costs of vehicles in Italy and said that they were, “significantly higher, sometimes the double of those at plants in other European countries,” mainly due to “exorbitant” energy prices.

While celebrating the first anniversary of the recently formed merger of the PSA Group and Fiat Chrysler Automobiles – Stellantis, the company CEO said, “It’s no coincidence that Stellantis was born precisely when our world requires a new kind of spirit, one that supports this human imperative by providing clean, connected, affordable and safe freedom of mobility for all.” In addition, he also revealed that the brand has planned investments of more than €30 billion (Rs 248,010 crore) by 2025 for electrification and software.

The company has also revealed that the brands long term plan will be announced on the 1st of March 2022 and it will give an insight into “the future of mobility with innovation and sustainable solutions” from Stellantis.

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