The prices for electric cars are falling. Since the end of the environmental bonus in Germany, many manufacturers have reduced base prices for electric models or offered attractive discounts. Now the boss of one of Europe’s largest car companies is clearly warning against continuing the price spiral.
Stellantis boss makes crystal clear warning about electric car prices
“If you cut prices without taking real costs into account, there will be a bloodbath.” The Financial Times quotes Carlos Tavares (via Manager Magazin) with this unequivocal warning to its competitors. He is CEO of Stellantis, according to VW second largest car manufacturer in Europe. Its brands include well-known names such as Fiat, Opel, Citroën, Jeep and several more.
The manager does not want to let his brands get involved in the price war that is now emerging on the electric car market. According to its own statement, Stellantis is already one of the most profitable car manufacturers in the industry. Therefore, Tavares sees Stellantis and its brands in the event of a general price decline well positioned – without having to throw around discounts.
Part of this confidence may be based on Citroën’s ë-C3. With the compact car, the Stellantis brand has that currently the cheapest modern electric car on offer without significant losses being expected. Against this background, however, the Stellantis boss’s announcement and confidence appear in a different light. He probably has no serious interest in having to deal with many of the competition’s models in the lower price segment.
A swipe at Tesla: Tavares dishes it out
Tavares does not see a danger in the price decline, but rather an opportunity: “I know a company that brutally reduced prices and whose profitability collapsed brutally,” says Tavares. According to industry insiders, he is alluding to Tesla.
The ë-C3 from Citroën is more than just impressive:
Citroën shows the ë-C3 – Europe’s first real Volksstromer
Car manufacturers could get into trouble with extreme price cuts without paying attention to costs, Tavares argues. Some people can do that qualify for a takeover – which the Stellantis boss is very familiar with. His group emerged from the merger of Groupe PSA (with Peugeot, Citroën, Opel and others) with the Fiat Chrysler group.
In addition to Tesla, VW, for example, has significantly reduced its prices as a result of the end of funding for electric cars. According to Tavares, corresponding steps from the Stellantis brands are not to be expected.
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