Stellantis Says EU's 2035 Combustion Engine Ban Means Auto Industry Is “Doomed” Unless EVs Get Cheaper

Stellantis Says EU’s 2035 Combustion Engine Ban Means Auto Industry Is “Doomed” Unless EVs Get Cheaper

Today in “saving the environment while destroying the entire global economy news”, major European auto manufacturer Stellantis is warning that unless EVs start to get cheaper, that the industry is “doomed” thanks to new deals to try and phase out internal combustion engines.

The company said it is looking to cut the cost of making EVs 40% by 2030, according to a new report from Bloomberg/MSN. This week, the EU pushed forward its agenda to stop the sale of all internal combustion vehicles by 2035. 

Chief Manufacturing Officer Arnaud Deboeuf said Wednesday that “the market will collapse” if electric vehicles don’t get cheaper. He called it a “big challenge”. 

Stellantis is doing their part trying to keep up with the increased government regulation – they are working on introducing more than 75 fully electric vehicle models this decade and transforming many of its French car plants to exclusively produce EVs. 

Stellantis is also working to develop 5 battery factories across North American and Europe, with the goal of producing 400 gigawatt-hours of cells by 2030. 

But EV prices have been rising, not falling. Tesla, for example, has raised prices by about $6,000 per vehicle this past month. Ford and Rivian have made similar moves, thanks to the rising cost of raw materials associated with EVs. 

Chief Executive Officer Carlos Tavares said that the new mandate shows that policy makers appear to “not care” about whether or not automakers have the raw materials necessary to be able to facilitate such a change. 

Increased battery demand between 2024 to 2027 will benefit Asian producers, he said, and will put at risk cell output in the West, Bloomberg reported. 

Meanwhile, the company also said it is looking at generating its own energy, due to the cost of rising prices associated with the Russia/Ukraine conflict and global inflation. “We have significant areas where we could put solar panels,” Tavares commented. 

Tyler Durden
Fri, 07/01/2022 – 05:45

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