Carlos Tavares has discovered hot water: electric cars cost too much, the middle class doesn’t want them and China has a competitive advantage that is almost impossible to fill in the short term. The problem is that, instead of taking a step back on the crazy green rules of Europe that are taking us towards the abyss in small steps, in the face of this epochal challenge the CEO of Stellantis dishes out the oldest of remedies: “Pay Pants”. That is, the State. That is, the taxpayer. If the electric revolution doesn’t work, let taxes finance it.
Obviously in the hearing today in Montecitorio, Tavares (due to be released by Stellantis in 2026) did not use these terms. But we’re almost there. “Our mission is to bring safe, clean and reliable mobility to our citizens,” he said. “We all agree (not this site, ed) that global warming is a reality” and “we must do something to change the situation”. Stellantis “is ready for the transition”, claims the fact that the rules were imposed on it and it did not choose them, but will not put pressure to obtain a backtrack on the emissions rules, as instead requested by Acea. The European association of car manufacturers would like a postponement to 2027 of the regulation which provides for a drastic cut in automotive emissions by 2025, but Stellantis has dissociated itself. “In our sector – explained Tavares – the throughput time is very long. We will not ask for any changes but to guarantee the stability of the rules. The strategy established by the EU perhaps it’s not the best among all the possible ones. But we are convinced that the best strategy at this moment is not to argue about the rules.” In short: wrong choice, but better to continue digging your own grave. Great idea.
That not a trivial problem remains: buyers don’t buy electric cars, which remain unsold in dealerships (they too are angry with the EU and with Stellantis). “Why don’t we sell electric cars in Italy?”, asked Tavares. Answer: they cost too much. So “We need to make them accessible to the middle class.” And how? There are two options on the table: either by relocating or with the good old “incentives and subsidies”. That is, suggests the CEO of Stellantis, “through advantageous taxation”. However, subsidies are not free, especially in an economy that is not exactly thriving like the Italian one: they weigh on general taxation and it is no coincidence that Germany has also started to cut them sharply.
Or electric, or death. It is clear that faced with this scenario Tavares he has an easy time saying that “if we want to maintain our plants” in Italy “we have to sell the vehicles at a price accessible to the middle class”. No sales volumes, no production plants. Easy. And at the moment in Italy the plan only extends until 2030, in some cases 2033. But if Stellantis is not able to quickly reabsorb that 40% more costs than electric onesthus protecting “our margins”, the company will not be able to “assign vehicles to plants beyond 2030”. Plants which could therefore even close, while the motorist either buys used petrol cars or turns to China. “It all depends on costs. If we want to maintain activity in our plants we must sell vehicles at affordable prices for the middle class.”
Somewhat surprisingly, it must be said, Tavares’ hearing caused irritation on the left. “We expected a lot more,” he said Elly Schlein which asks the government to establish a control room. “You have already received guarantees and incentives from the Italian state. You came to Italy and enjoyed a 90% guarantee – he adds Giuseppe Conte – You brought home 6.3 billion but there were commitments in the clauses on employment levels and investments and you did not keep even one of those commitments”.
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