AUTONEWS
The executive president of the Stellantis group, Carlos Tavares, considered this Tuesday that “a bubble cannot be created” in the European market with import taxes on electric vehicles, because there will be “inflation within the bubble”.
Speaking to journalists at the end of the ceremony that marked the start of production of fully electric vehicles at the Mangualde unit, Carlos Tavares said that, as a global company, Stellantis has “a global vision”.
...“We know very well that we will not be protected throughout the world. Therefore, whatever decisions are taken by Europe or the United States, we will have to face Chinese competition in the rest of the world”, he stated, considering that protection could cause a lull in “this close combat”...
In the opinion of the person responsible, being protected in Europe does not allow you to win when it comes to competition in Africa and Latin America.
...“Therefore, from the company's point of view, which is a global company, we only have one possibility, which we face with great enthusiasm and with great appetite: we are going to fight the Chinese“...Stressed Carlos Tavares.
The company has the necessary technology and is “working very hard on costs” to be able to offer the middle classes, including Europeans, “electric vehicles at prices they can afford”, he added.
The Stellantis leader also said that “trying to apply rates at the individual level of companies is almost caricature in itself”.
It translates a mental complexity that is not suited to the reality of what we are experiencing. We are living in a reality that is very simple: we have the technology, we are capable of making stupendous electric vehicles and we have a cost problem that does not allow the middle classes to buy electric vehicles”, he highlighted.
In his opinion, this is the problem that needs to be addressed “at the root” and not “trying to put protections around it”.
Carlos Tavares questioned: “If you put the European market inside a bubble, inside the bubble there will be inflation and how will inflation be treated inside the bubble? With subsidies. How will subsidies be created? With taxes".
“It is obvious that in Europe there are already too many taxes. We already have an enforcement rate that is excessive,” he added.
Carlos Tavares also advised the Portuguese Government to use money from the Recovery and Resilience Plan (PRR) to “accelerate the development of the charging network” for electric vehicle batteries.
When asked about the package of measures to boost the economy that the Government is expected to announce on Thursday, Carlos Tavares asked for “help for the end consumer” and that “favor the development of electric vehicles”.
...There are two types of help: one is directly to the end consumer and the other is battery charging infrastructures”...Explained the boss of Stellantis
In the opinion of the head of the automotive group, if the battery charging infrastructures “are visible and have a high level of density, they will allow cars to have smaller batteries, with a shorter range”.
“Each of us will be reassured by the visibility of the charging stations and, therefore, no longer have that anxiety of needing 600 kilometers of autonomy. It can have a smaller battery and if the battery is smaller, the car is cheaper”, he highlighted.
The executive president of Stellantis asked the Government to help the middle classes to buy electric vehicles, saying that “we have seen across Europe that aid is between five and seven thousand euros per car”, which “makes a huge hole in the budgets of State”.
“And as soon as this aid stops, demand disappears,” he added.
In this context, if I had to give the Government a recommendation, it would be: “they can use the PRR to accelerate the development of the charging network and they can use the money they have to encourage and help the middle classes to buy electric cars at a more affordable level ”.
There is a cycle that is very positive: more charging network density means less range anxiety, which means smaller batteries, smaller batteries mean more affordable electric vehicles”, he added.
Carlos Tavares once again spoke about the need for a rail connection from the Mangualde factory to the ports of Vigo and Leixões, “a project that is progressing”.
“It is necessary from an environmental point of view, because there are fewer trucks on the road, and from a cost point of view it is much cheaper than transporting cars with trucks”, he highlighted.
The official also alluded to the need to reduce the cost of energy to a competitive value, which would be “below 70 euros per megawatt/hour” and, then, “control the volatility of this energy cost”.
“It can't always be going up and down, because we can't always change the selling price of cars just to compensate for energy,” he said.
The automotive group is committed to having, next year, all factories in the world produce “at least 50% of the energy they consume“, coming from renewable resources.
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