Home Business Tavares (Stellantis): the balance of the group’s first year of activity

Tavares (Stellantis): the balance of the group’s first year of activity


He blows out the first candle Stellantis, the car giant born last year from merger between Fca and Peugeot and the CEO Carlos Tavares during an interview with CorSera, outlines the balance of the first year of activity, also giving some anticipation of the new business plan which will be unveiled on March 1st.

Tavares: Termoli candidate for an Italian gigafactory

Tavares has announced that gigafactories will be built in France, in Germany and maybe even in Italy, in Termoli to be exact.

“We are negotiating with the Italian government, on Termoli, but we have not yet concluded ”said Tavares who, with regard to the high production costs in Italy, suggests the way forward.

A year ago, I noticed that in Italy the cost of producing a car was significantly higher, sometimes double, compared to factories in other European countries, despite a lower labor cost. This has to do with the organization of production, which needs to be improved. If we apply the good practices that exist in our group to Italy, Italy itself will have good potential.
A particular problem that concerns you is the oversized price, excessive, energy. We have had an extremely virulent discussion with energy suppliers on this point. Compared to other countries where we produce, it stands out (…) It takes some time for things to be put into practice: we will talk about it again at the end of 2022. Any brutal approach would have been inappropriate, we must first analyze and understand ”.

Stellantis, the electric road

Tavares then says he is skeptical about electrification which, in his opinion, is one technology chosen by politicians, not from industry.

There were cheaper and faster ways of reducing emissions. The method chosen does not allow car manufacturers to be creative to come up with different ideas. It is a political choice (…) Our battle now is aimed at minimizing the impact of the additional costs of 50% of electric vehicles.
It means having average productivity increases of 10% per year in five years, while the automotive industry, particularly in Europe, reaches between 2% and 3%. Basically we have to go from 2% or 3% to 10%. A competitive spirit guides us at Stellantis and in a few years we will see which producers survived and which didn’t. In ten or fifteen years we will also know the real results of electrification in terms of reducing greenhouse gas emissions. To put it simply, not looking at the entire life cycle of electric cars is very reductive. It should not be lost sight of the fact that there will be social consequences and we risk losing the middle class, which will no longer be able to buy cars. So it is too early to say whether the European approach is reasonable (…) With the Europe’s energy mix, an electric vehicle must travel 70,000 kilometers before it compensates for the CO2 footprint created by the manufacture of the battery. Only then does it begin to widen the gap with a light hybrid vehicle. We also know that a light hybrid vehicle costs half as much as an electric one. Ultimately, it is better to accept highly efficient thermal hybrid cars so that they remain affordable and provide immediate CO2 benefit, or it is necessary to have 100% electric vehicles that the middle classes will not be able to afford, while asking governments to continue to increase their budget deficits to provide incentives? This is a social debate that I would like to have, but for now I don’t see it ”.

The shortage of semiconductors

Finally an access to the semiconductor crisis which, according to the number one of Stellantis, will last at least until the end of the year.

Starting from the summer, the new production capacity created in the world will begin to restore balance between supply and demand (…) The impact on the production volumes of the global automotive industry is 15-20%. So much. We need to review our business model and think about optimizing the engineering part, to protect ourselves from similar problems in the future.

We still have a lot to do to keep improving our new company, but we are on the right track, ”said Tavares. «The race has begun and Stellantis will be able to make a difference in the difficult sector in which it operates. We will know how to seize the opportunities along the way, making sure that our stars continue to shine “

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