Stallantis 2023

Abstract

The case kicks off in January 2023 at CES, where the various companies showcase their know-how and technological innovations. Carlos Tavares, then CEO of the Stellantis automotive group, repeatedly declares in speeches and press statements that the entire European automotive industry must already prepare for a terrible technological and economic war with Chinese electric car manufacturers. All European carmakers, including Stellantis, find themselves driven by new social trends and new European legislation towards all-electricity, posing an unprecedented technological and economic challenge. Carlos Tavares, with his extensive experience in the automotive industry, already knows that the Stellantis’ rapid transition to 100% electric vehicles will not come without many sacrifices. Indeed, electric car production in Europe is impossible for a large category of vehicles due to high production costs, and Carlos Tavares is already thinking of relocating part of the production to certain countries like India, so as to be able to re-import more affordable electric vehicles into Europe, ready to compete with the new Chinese electric models. However, Carlos Tavares is aware of the social and political impact of such a decision in Europe, and therefore proposes another alternative that would require action on the part of European political decision-makers. This would involve guaranteeing virtually all electric vehicle production in Europe, on the condition of subsidies from the various governments, particularly to European motorists, or through the adoption of a protectionist trade policy at European Union level. Carlos Tavares will therefore have to use both his experience and his influence with public opinion to warn politicians of the many threats to the European automotive industry when it comes to electric cars, and to urge the European Union to take radical decisions.

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