Stellantis adding vehicle flexibility
Company ready to adapt to EV politics
DETROIT — On the surface, you wouldn’t think the platform beneath a new generation of automobiles has anything to do with politics and elections.
But at Stellantis, new large vehicle underpinnings announced Friday are key to the company’s ability to adjust to European and U.S. government electric vehicle requirements that could change depending on this year’s elections.
CEO Carlos Tavares said the company’s new large platform is flexible enough to handle batteries and electric motors, gas-electric hybrids and internal combustion engines. The company also can build midsize to large vehicles on those underpinnings, including sedans, crossover vehicles, SUVS and even off-road Jeeps.
That flexibility is important, he said, because policies promoting EVS as a way to fight climate change could be rescinded depending on who is elected president or to European parliaments this year.
Tavares often has said that EVS cost 40 percent more to make than vehicles with combustion engines, boosting prices beyond what the middle class can afford. Governments have tried to promote EV sales with subsidies and tax credits, but some countries are starting to rethink those.
“As soon as you do not fix the affordability issue by giving me a significant subsidy that will fix it, then I stop buying,” Tavares said of consumers. “That message is loud and clear.”
Electric vehicle sales growth already is slowing in many countries with consumers balking at the added cost as well as limited range and too few charging stations. On Friday, Ford said it was cutting production of the F-150 Lightning electric pickup after weaker-than-expected electric vehicle sales growth.
Some political candidates, including GOP front-runner Donald Trump, have criticized the move to EVS, indicating they would end policies to promote them.
Stellantis, maker of Jeep, Ram, Dodge and other vehicles, has plans for two scenarios, one if populist candidates who are against EVS win, the other if Ev-friendly candidates are elected, Tavares said. “One is to accelerate (EVS), the other one is to slow down,” he said. “Not necessarily stop. We need to fix the global warming issue.”
Tavares said in some European countries, governments are imposing electric vehicles on consumers who can’t afford them. So many are keeping their current vehicles longer, raising the average vehicle age, which he said is a “disaster” for the planet.
Stellantis, he said, makes money on its EVS now, unlike many competitors. Those who can’t get strong prices for their vehicles won’t have money to invest in lower-cost new ones and could wind up being consolidated into another company or going out of business, he said.
If companies keep cutting EV prices to attract buyers and don’t make money, there could be a “bloodbath” in the industry, Tavares said.
Stellantis said vehicles built off the new large platform will be built at multiple North American and European factories. In North America, it’s likely that the first new vehicles to come out will be a replacement for the Dodge Charger muscle car and a new version of the Jeep Wagoneer S.