Stellantis CEO Warns of EV Transition Challenges

Stellantis CEO Carlos Tavares has raised concerns about the unintended consequences of EU tariffs on Chinese electric vehicles, suggesting they may exacerbate overcapacity issues in Europe and encourage Chinese manufacturers to establish local production. He warned that a prolonged transition to electric vehicles (EVs) could trap automakers in a costly scenario where they must invest in both EVs and combustion vehicles. Tavares emphasized the need for stable regulations and expressed his commitment to all-electric vehicles by 2035, despite recent dips in EV sales across Europe, particularly in Germany. He argued against calls to delay emissions regulations, highlighting the urgency of addressing climate issues. Tavares has faced scrutiny for Stellantis's rising inventories in the U.S. market, attributing this to strategies set by local teams rather than his directives. Overall, Tavares's remarks underscore the complex challenges facing the automotive industry amid shifting market dynamics and regulatory pressures.