Managing costs and the consequent reduction of electric car prices is a problem that many car manufacturers are facing. Among these are also the brands of the Stellantis Group, which has the goal of reducing the costs of raw materials needed for the construction of battery-powered cars. Stellantis CEO Carlos Tavares has several options in mind regarding this.
Stellantis: Carlos Tavares has several options to reduce the costs of electric cars
During his visit to the Stellantis plant in Melfi, Italy, the Portuguese manager released some statements about this. The head of the Stellantis Group declared that he began thinking about a solution after the continuous delays of suppliers on the delivery of materials. Tavares has therefore started to think about producing the necessary materials internally, instead of relying on third-party suppliers.
According to Automotive News Europe, Stellantis, as well as other car manufacturers, is putting a lot of pressure on suppliers, with the aim of obtaining a reduction in costs and, consequently, containing the prices of future electric cars of the Group’s brands.
The biggest concern is related to Chinese competition, which offers electric cars on the market with an excellent quality/price ratio. Moreover, with the continuous expansion of oriental manufacturers in the West, prices will go down more and more year by year, reaching the prices of “traditional” cars. However, Chinese manufacturers have an advantage thanks to significantly lower raw material costs.
To date, Stellantis collaborates with several suppliers in managing production levels related to electric cars of the Group’s various brands. However, Carlos Tavares has stated that all partners are adjusting investments related to electric car batteries in order to meet market demand. During his speech at the Melfi plant, he specified that electric vehicles will soon be produced in the factory as well, although he will have to review costs, especially with regard to energy costs.