Stellantis CEO voices concern over affordability of electric vehicles: Report

Electric vehicles cost way more than combustion-engine vehicles that follow carbon emission standards, making it almost an exclusive purchase.
By HT Auto Desk
| Updated on: 16 May 2021, 05:53 PM
A flag with the logo of Stellantis. (File photo) (Reuters)
A flag with the logo of Stellantis. (File photo) (Reuters)

As the world of automobile goes gaga over electrification and beams with an assurance that this move is in tandem with concerns of climate change, one may ask how this goal will be achieved as electric vehicles are way too expensive for the larger section of the customers. This concern was recently voiced by Stellantis CEO Carlos Tavares who said if electric cars are not affordable, then the issue of carbon emission is going to be much worse, as reported by Insideevs.

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As per the report, car companies that make combustion-engine vehicles that comply with emission standards cost about €10,000 in Europe, however, as soon as these become electric, the cost may go up to more than €30,000. If the production of these affordable cars is stopped, then the customers who would have gone for this option will prefer to stay with combustion-engine cars, therefore, causing more pollution than intended.

(Also read: More than 1,600 to lose jobs at Stellantis Illinois factory due to chip shortage)

As per the report, Tavares said that despite having a full range of electric vehicles, if affordability is the issue, the problem of carbon emission will be difficult to handle. He also added that there are going to be social impacts if car companies are forced to sell EVs. The people who develop and manufacture combustion engines will either be left with nominal options of work or may also lose their jobs.

The Stellantis CEO pointed out those automobile companies that intend to go all-electric may have to make their teams smaller by laying off people who have been traditionally trained. He also added how companies are rationing their options to make more profits. According to the report, one such example was Ford which aims to sell only trucks and SUVs to generate higher revenues. He also highlighted that affordable cars are responsible for most sales for the car companies.

First Published Date: 16 May 2021, 05:53 PM IST

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