Stellantis CEO warns that a recession could slow EV adoption

Carlos Tavares, chief executive of Stellantis, warned that the recession could slow the growth of EV adoption, especially if the government cuts spending and incentives.

Speaking from Germany during a virtual roundtable event, Tavares said central banks need to be careful in their decision-making and indicated that increased spending on credit services due to high interest rates could reduce government spending at a time when consumers need it. Get as much support as possible to get an EV.

“If you lose the ability of the middle class to buy electric cars because you support them less, because you don’t have that much money, because you need to take care of the budget deficit,” Tavares said, “because you can’t continue. To increase debt, because debt Care is very expensive, because of rising interest rates, you are widening the gap. “

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Tavares has previously warned that in 2024 or 2025, the automotive industry will experience a shortage of high-voltage batteries while waiting for further production online. The carmaker will begin production in 2025 at a North American battery plant in Cocomo, Indiana, and as it and other major battery sites come online, there could be a shortage of raw materials by 2027 or 2028.

With that in mind, Tavares said it is important to keep emissions requirements stable, noting that some companies will not be able to keep up due to supply-chain constraints. Detroit News Report

“The only thing that really helps deliver is stability,” Tavares said. “Stop playing with the rules. Leave the rules as they are, and let people do the right thing with a lot of focus and a lot of rigor. “

Stellantis is investing 35 35.5 billion in electrification and software by 2025, and expects half of its U.S. sales to be for EVIs by 2030. The carmaker is ready to withstand a small car market because it is being converted to EV, Tavares added.

“If demand goes south because the purchasing power factor is not there, we need to be able to live with a lower customer base,” he said. To do this, Stalantis is working to keep 50 percent of its break-even point sales. “With less sales, at least for a certain period of time, that means protecting the company and ensuring the stability of the company that we have to keep our break-even point, which is exactly what we’re doing.”

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