Stellantis CEO warns of limited time for EV companies losing money
Stellantis CEO Carlos Tavares predicts that automakers could start dropping out of the market due to the transition to electric vehicles (EVs) by the end of the decade. Tavares believes that legacy automakers with profitable gas- and diesel-powered vehicles are in the best position to survive this transition. The outcome of the U.S. presidential election and the European parliament election next year could impact the speed of EV adoption. Tavares estimates that automakers not making money on EVs could collapse within two to three years, depending on the obstacles faced. Stellantis expects cost parity between EVs and internal combustion engine vehicles by 2026. Tavares emphasizes the importance of profitability in the middle-class market segment and the need to reduce costs to achieve it. Despite regulatory uncertainty, Stellantis remains committed to electrification and its Dare Forward 2030 strategy. However, Tavares acknowledges weaknesses in operational excellence and logistics.