According to Reuters, Stellantis CEO Carlos Tavares stated during a speech to the Italian Parliamentary Committee in Rome that current EU carbon emission regulations have increased the costs of the European automotive industry by 40%, while consumers remain reluctant to purchase expensive electric vehicles.
In the electric vehicle market, competition from China has added further pressure on the European auto industry. Tavares noted that Chinese automakers hold a 30% cost advantage over European manufacturers in the electric vehicle sector. He emphasized that this has created "unbearable pressure on the European auto industry."
Tavares also mentioned that unless electric vehicle prices become comparable to traditional gasoline vehicles, the market acceptance of electric vehicles will not improve. He believes that government-provided incentives are the only way to support demand for electric vehicles.
However, Tavares clarified that he is not advocating for changes to the EU's carbon emission reduction regulations, despite calls from organizations like the European Automobile Manufacturers Association (ACEA) and automakers such as Renault to revise mid-term carbon emission reduction targets for next year. "Stellantis is ready, but we just hope that policies and regulations remain stable," he said.
Additionally, Tavares pointed out that energy costs in Italy are too high, being twice as expensive as in Stellantis' Spanish production facilities, which he described as a significant disadvantage for Italy's automotive industry.
Italy has previously criticized Stellantis for its declining car production within the country. This year, Stellantis' production in Italy is expected to drop from 751,000 vehicles last year to below 500,000.
Facing pressure to improve Stellantis' performance after the company issued a profit warning, Tavares added that the automaker's parts suppliers, many of which are small businesses, will also have to bear the strain of Stellantis' cost-cutting measures.