Carlos Tavares, Stellantis’ chief executive, stated on Wednesday that the group anticipates a serious war with Chinese rivals in the European market for electric vehicles. He expects substantial implications as a result.
Carlos Tavares, the group’s chief executive, stated on Wednesday that Stellantis anticipates a serious war with Chinese rivals in the European market for electric vehicles. He expects substantial implications as a result.
Tariffs, according to Tavares, might influence sales and output because they would simply increase inflation in the areas where they are implemented.
At the Reuters Events Automotive Europe conference, Tavares declared, “We are not talking about a Darwinian period; we are in it,” and he added that the pricing war with Asian competitors would be “very tough.”
The United States has stated it will impose 100% levies to prevent the export of Chinese EVs. Meanwhile, the European Commission is expected to announce its initial decision on prospective tariffs on Chinese EV imports on June 5. China has made threats of retaliatory measures.
“When you fight against the competition to absorb 30% of cost competitiveness edge in favour of the Chinese, there are social consequences. But the governments, the governments of Europe, they don’t want to face that reality right now.”
According to Tavares, Chinese manufacturers are already on track to sell 1.5 million cars in Europe. This translates to a 10% market share and the output of up to 10 assembly plants.
“If we let the share of the Chinese OEMs grow … then it’s obvious that you are going to create an overcapacity, unless you fight against that competition,” Tavares stated.
Tavares said Stellantis is in “very rewarding discussions” with labour unions at its European operations: “Most of the time they agree with us in terms of what is the risk that we are facing and how we should go through that period.”
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