German Manager Magazine: Carlos Tavares: Stellantis boss fears price decline for electric cars003048

The Opel-Mother Stellantis does not want to be drawn into a price war with other car manufacturers. “If you lower prices without taking the actual costs into account, there will be a bloodbath,” said CEO Carlos Tavares »Financial Times«

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His company is one of the most profitable in the industry and is protected against a drop in prices. Other car manufacturers, on the other hand, could get into difficulties, making them a possible target for takeovers. “I know a company that has brutally cut prices and its profitability has collapsed brutally,” he said, without elaborating. Industry observer interpreted this as a reference to Tesla

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Shortly before, according to the report, the car manufacturer had ford announced that the company is ceasing production of its in the USA wanted to reduce the popular F-150 Lightning model due to weak sales figures. They want to bring vehicle production in line with customer demand and expect “continued growth in global EV sales in 2024, albeit less than expected,” quotes the Financial Times.

Manufacturers find it difficult to offer their customers affordable vehicles – and at the same time defend and sustainably secure their profitability, Tavares told the in November MIRROR

and warned of the consequences of the electric transition. If manufacturers do not manage to “escape this dilemma, it will end badly.”

According to a report in the trade journal “Auto, Motor und Sport”, several manufacturers have capped their prices for some electric cars, including Volkswagen, the Renault-Daughter Dacia and Tesla. The Stellantis brand Citroën had also reduced prices.

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