New electric cars are hard to come by for less than 30,000 euros. That should change. However, Europe as a location will probably not benefit from this, fears one of the most powerful corporate bosses.
The supply of cheap electric cars in Europe will grow rapidly. However, the vehicles will hardly come from Europe, believes Stellantis boss Carlos Tavares. The disadvantages in the cost structure in comparison to China and other countries would prevent that. However, he does not say where it is to be produced. The Group’s cheapest electric model is currently the Fiat 500, a small car for around 30,000 euros. Stellantis also includes Opel, Peugeot, Fiat and Jeep. In general, the manager draws a bleak scenario for European car manufacturers at the industry meeting in the Ruhr area. So far, only about one percent of the upcoming fundamental transformation of the industry can be seen. Striving for the remaining 99 percent could also lead to social upheaval. Last but not least, he has in mind what he considers to be the excessive costs for the industry in Europe: These would harbor the risk of the auto industry migrating – Europe would then be transformed from an industrial location to a Excursion destination for Chinese and American tourists. He does not consider protectionism or the repatriation of imports from low-wage countries to be a solution. Instead, Europe must accept the competition – and work more, or at least smarter. (SPX)