The EU plans to phase out petrol and diesel cars for electric vehicles, but Stellantis CEO Carlos Tavares sees cheaper and faster ways to reduce carbon emissions.
The European Commission’s strategy to phase out combustion engines in favor of electric vehicles is a choice that involves environmental and social risks, Stellantis CEO Carlos Tavares said in an interview.
Since the merger of Fiat Chrysler and Peugeot PSA Group, Tavares has developed a € 30 billion electrification plan, which has helped Stellantis’ shares grow by more than 60% in their first year.
“What is clear is that electrification is a technology chosen by politicians, not industry,” he said in a joint interview with Les Echos, Handelsblatt, Corriere della Sera and El Mundo.
He added that there are cheaper and faster ways to reduce carbon emissions.
“Given the current European energy mix, an electric car has to travel 70,000 kilometers to offset the carbon footprint of battery production and start catching up with a light hybrid vehicle that costs half as much as an electric vehicle.” he said.
He also said that banning internal combustion engines from Europe by 2035 means that carmakers need to start rapidly transforming their factories and supply chains.
“The brutality of this change creates social risks,” he said.
In a detailed interview that addressed the various challenges facing Stellantis, Tavares also clarified his promise not to close factories in Europe.
“In general, I stick to the promises I make, but we also need to stay competitive,” he said, citing production costs in Italy, which were “considerably higher, sometimes twice as high as those in other factories.” European countries ”, mainly due to“ exorbitant ”energy prices.
Pointing to Rome, where the government is working to reduce industrial costs, he said: “It will take some time for the measures to be implemented. We will discuss this again at the end of 2022. “
Stellantis will announce a new long-term strategic plan on March 1.