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Stellantis CEO says automaker won’t sell electric vehicles at a loss

by SuperiorInvest

Carlos Tavares, CEO of Stellantis, poses during a presentation at the New York International Auto Show in Manhattan, New York, on April 5, 2023.

David Dee Delgado | Reuters

stellantis will not sell electrified vehicles such as hybrids and all-electric models at a loss as other automakers have done, Chief Executive Carlos Tavares said Friday.

Tavares, who has been skeptical about consumer adoption of electric vehicles, said the company is currently making money on its electrified vehicles and will continue to do so with its next-generation vehicles, about which Stellantis released additional details on Friday. .

“Being in both Europe and the United States, we are making money with electrified vehicles,” Tavares said during a panel discussion on Friday. “We’re making money, and it’s in our discipline to make sure we make money on whatever we sell because if we don’t, the business won’t be sustainable.”

Some automakers, including one of Stellantis’s predecessors, Fiat Chrysler, have sold electric vehicles at a loss to stimulate sales, meet fuel economy standards or build capacity in the hope that the vehicles will eventually become profitable.

Stellantis currently has 25 electric vehicle models available worldwide and expects to launch another 23 by the end of this year.

The company previously announced an all-electric version of the Jeep Wrangler SUV and a Dodge muscle car. An all-electric version of the Ram 1500 pickup truck is also expected to launch early next year.

Tavares said the automaker remains committed to its plans to invest 50 billion euros ($54.4 billion) in electrified vehicles and related technologies through 2030, despite slower-than-expected adoption in many countries.

“There is no such thing as slowing down the EV roadmap for Stellantis,” he said Friday during a virtual media roundtable.

However, Tavares said those plans could change based on consumer demand and potential political changes that could result from this year’s elections in the United States and Europe.

New architecture

Some of Stellantis’ upcoming vehicles will be on the company’s “STLA Large” platform, which revealed details on Friday.

The STLA Large platform is just one of four architectures, or vehicle brains, that will underpin the company’s next-generation models.

The company said it plans to launch eight new vehicles, including all-electric models, on its STLA Large platform that will underpin vehicles through 2026. Stellantis did not specify how many of those vehicles would be electric, as the platform will also support other powertrains, such as plug-in hybrid electric vehicles (PHEV), non-plug-in hybrids and traditional internal combustion engines.

Stellantis said EV models on the large platform will be available in 400- and 800-volt battery EV architectures, enabling a variety of charging speeds and a driving range of approximately 500 miles for the sedans.

Tavares said vehicles with the platform will be launched first in the North American market, starting with the Dodge and Jeep brands, followed by Alfa Romeo, Chrysler and Maserati.

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