by Gilles Guillaume, Giulio Piovaccari and Joseph White
PARIS/MILAN/DETROIT (Reuters) – Stellantis wants to avoid being drawn into a price war that would destroy its profitability, the automaker’s chief executive said on Friday, adding that the Red Sea crisis had not occurred at this stage. major impact on industry supplies.
“If you lower your prices without regard for the reality of your costs (…) then you will have a bloodbath,” Carlos Tavares said during a press conference on the launch by Stellantis of a new architecture electric for large, high-power cars. “I’m trying to avoid a race to the bottom.”
One of the most profitable groups in the sector, Stellantis today remains protected against a downward trend in prices which could place several competitors “in difficulty” and make them takeover targets, he added.
“I will adjust (the prices) at the same pace as I reduce costs. I know a company which suddenly lowered its prices and which saw its profitability melt,” continued Carlos Tavares.
Tesla has just lowered its prices again, this time on its Model Y SUV in Germany and France, a week after a price drop in China in the face of uncertainties about demand for electric vehicles, raising fears of a war of prices in 2023. price.
On supply disruptions caused by changes in maritime transport routes due to attacks in the Red Sea, Carlos Tavares indicated that apart from the lengthening of transport times, he did not expect an impact major part of the crisis, although it disrupted the production of several manufacturers.
“It could have an impact on the cost (…) so there could be good discussions on how to offset this cost. But at this stage, I don’t see any other impact,” he said. declared.
STRONGER THAN A BIG V8
Stellantis has unveiled a new vehicle architecture which will serve as the basis for eight large sedans and SUVs launched by 2026 as part of the electric offensive of the manufacturer born from the merger between PSA and FCA, in Europe but also now beyond -Atlantic.
This platform, named “STLA Large”, will be industrialized in several factories, first in North America then in Italy, and inaugurated by the Dodge and Jeep brands, followed by Chrysler and Maserati, indicated Carlos Tavares.
One of the group’s four new generation architectures, dedicated to electric but which can also serve as a basis for hybrid or gasoline vehicles, STLA Large uses electrical powers of 400 to 800 volts and powerful battery packs ranging from 85 to 118 kWh .
It allows a range of 800 km and acceleration such that 0 to 100 km/h can be reached in two seconds with the first generation of components.
These performances will help convince customers who are fond of American muscle cars or luxury and sporty models to go electric.
“The STLA Large platform has the potential to support exceptional power capable of exceeding that of current V8 Hellcat engines,” added Stellantis in a press release, referring to the eight-cylinder gasoline engine of the Dodge Challenger and its whopping 909 horsepower.
As part of its strategic plan, Stellantis plans to invest more than €50 billion over the next decade in electrification to achieve its target of 100% battery electric car (BEV) sales for passenger cars in Europe and 50% of BEV sales for passenger cars and pickups in the United States by 2030.
(Report by Gilles Guillaume, edited by Sophie Louet)
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