CEO Carlos Tavares Highlights Economic Rationale and Competitive Landscape Amidst Chinese EV Brands
PARIS, July 5, 2023 – In a recent interview published in Le Figaro, CEO Carlos Tavares of Stellantis, the world’s No.3 carmaker, announced that the production of the electric Peugeot e-208 would remain in Spain, defying the French government’s efforts to localize manufacturing. Tavares emphasized that the economic equation associated with relocating the project to France would not serve the best interests of the company or the nation.
While the French government is encouraging the production of locally made electric vehicles (EVs), Tavares presented a compelling case against the shift. Despite the potential benefits of reducing carbon footprints and offering social leasing programs for EVs, Tavares highlighted the higher costs associated with electric vehicles compared to their fossil-fuel counterparts.
According to industry data, European carmakers are planning to introduce more affordable EV models, spurred by government subsidies. In France, for instance, the government plans to provide subsidies for EVs produced within Europe. Additionally, a social leasing program aims to make EVs accessible to lower-income households at approximately €100 ($108) per month.
French Finance Minister Bruno Le Maire urged Stellantis to consider producing small electric vehicles, such as the Peugeot 208, in France while continuing to manufacture higher-end models elsewhere. Le Maire acknowledged Tavares’ penchant for challenges and proposed the idea of producing specific parts of the vehicles within the country.
Addressing the competitive landscape, Tavares voiced his concern about the encroachment of lower-cost Chinese brands in the European market. Stellantis aims to counter this threat by unveiling its first European-made affordable electric car, the new Citroën e-C3, in mid-October. Tavares acknowledged the need for more affordable European models, noting that Chinese EV brands boast 20-25% lower costs compared to their European counterparts.
As the battle for market share intensifies, industry observers eagerly await the outcome of Stellantis’ strategic decisions. The choice to keep production in Spain for the Peugeot e-208 is a calculated move, taking into account the economic viability of the company and the competitive challenges posed by the influx of Chinese EV brands into the European market.
