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“It will be an exciting battle”

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“It will be an exciting battle”

An electric car is an expensive purchase. A truism that is changing around the world. The number one of one of the major European manufacturers is now settling accounts with Stellantis boss Carlos Tavares. It’s going to be really tough for German automakers.

Stellantis boss: Europe’s car manufacturers have to defend themselves

Stellantis boss Carlos Tavares expects hard times for the European auto industry. The long-established manufacturers would have to change and the accept the challenges of the competition, who convince with cheap cars not only in China and the USA. “There is only one way to solve the problem. We have to accept the competition.” said Tavares on the sidelines of the Bochum Car Symposium (source: Spiegel).

Otherwise, in the future, everyone would E-cars for less than 25,000 euros purchase price come from off the continent rather than being built locally. So far there are practically no models at such a low price from the established manufacturers. However, Chinese brands in particular could – and want to – gain a foothold on the European markets with their inexpensive products.

China manufacturers can be cheap – but also have a new self-confidence that allows higher prices:

Tavares believes that even Tesla has long since felt the pressure of cheaper competition when it comes to e-cars: “Elon has arrived in my world.” Similar to Ford boss Jim Farley, he sees them massive price cuts by the world market leader as a clear sign of this. By doing so, however, Tesla would pass on the pressure to the part of the industry that has less leeway for attractive offers with lower margins.

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As a result of Tesla’s price cuts, a price war has long broken out. However, many European manufacturers are still putting off their entry: “It will be an exciting battle”says the Stellantis boss.

Fiat, Opel, Citroen: Where else can we find room for price cuts?

Tavares is in the branch known as a cool calculator. At the helm of the still young Stellantis group, he brought together a number of brands that had been navigating difficult waters for a long time – and with them successfully earn money again. From Germany, Opel is on board with Stellantis.

The question arises, however, on which side Tavares Stellantis now sees: Has the group exhausted the savings potential in recent years or can it get even more out of it now that Tesla and the Chinese manufacturers are putting the thumbscrews on the international competition?

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