Invited on France 2, Carlos Tavares was able to clarify the strategy of the Stellantis group vis-à-vis Chinese automobile manufacturers, including the partnership with Leapmotor.
The boss of Stellantis, Carlos Tavares, denies having brought the wolf into the fold by associating with the Chinese manufacturer Leapmotor. During an interview carried out live on the set of France 2 on May 16, Carlos Tavares was able to explain to the public the reasons which pushed Stellantis, a group with 14 brands (Peugeot, Citroën, Fiat, Jeep, Opel, etc.), to add an additional Chinese brand.
In October 2023, the Stellantis group surprised everyone by announcing this partnership with Leapmotor. Carlos Tavares has never hidden a certain animosity towards Chinese competitors, which did not prevent the group from joining forces with one of them. The first Leapmotor dealerships will also arrive in force in 9 European countries, including France, from the start of the 2024 school year. The first model to be marketed, thanks to Stellantis, will be the small Leapmotor T03 for less than €20,000, then the C10.
Leapmotor profits fall into Stellantis’ pocket
Stellantis is accused of making Leapmotor a Chinese Trojan horse by facilitating its introduction into Europe. The group’s boss is opposed to this criticism, he sees above all ” a quick learning strategy “, also allowing us to compare the way in which the Chinese automobile industry manages production costs. The cost of producing electric cars in China is 30% lower than in Europe, but it’s not all down to the location of the factories.
Beyond a means of making faster progress on electric mobility, Carlos Tavares points out that “ the profits from this export (of Leapmotor cars) will fall into the pocket of Stellantis. This will in turn allow Stellantis to invest more massively in new technologies. » Despite appearances, it is therefore good for the sustainability of Stellantis according to Carlos Tavares.
“ Rather than being completely defensive, we’re going to be offensive »said the boss of the group. The European Commission and certain manufacturers fear the expansion of Chinese manufacturers in Europe and are looking for solutions to slow down their arrival. For Carlos Tavares, this is not the right solution: “ We took the lead, we did not wait for Chinese manufacturers to be big enough to buy Western manufacturers. We took a position beforehand with a Chinese manufacturer to have control over it. »
The trap of rising customs duties
Carlos Tavares was also asked about the United States’ consideration of raising tariffs on Chinese cars and parts (batteries) to 100%. A measure which could strongly influence the decisions of the European Union. The boss of Stellantis judges quite harshly that this is a “ big trap “. All this contributes to creating a bubble where inflation is galloping in the area concerned.
This is not necessarily a service to local manufacturers and even less to buyers of electric cars according to him: “ Brands inside the bubble are falling behind and prices are not being driven down for the middle classes. »
Competition, including from China, is healthy and pushes the automobile industry to surpass itself: “ They started about ten years before us and they run very fast. » Chinese brands are the only ones that manage to erase the gap between the prices of thermal cars and those of electric cars. They are necessary to make electric cars affordable for the middle classes: it is thanks to high volumes that electric cars can be sold at the same price as current thermal cars.
Leapmotor cars will likely be produced in China initially and then exported. If Europe imposes excessively high customs duties, Carlos Tavares does not rule out producing the models in Europe more quickly than expected. It’s not just about circumventing customs duties, but ” to protect the affordable dimension of clean mobility for the middle classes. » Its interest is to keep Chinese models at low prices for the European market.
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