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Stellantis Chief Executive Carlos Tavares anticipates a significant battle with Chinese rivals in the European electric vehicle (EV) market, foreseeing substantial consequences for Western automakers.
Tavares emphasized the challenges posed by tariffs on Chinese vehicle imports to Europe and the United States, cautioning against the potential impact on Western automakers’ competitiveness and restructuring efforts.
Tariffs and Their Implications:
Tavares warned that tariffs on Chinese EV imports could fuel inflation in regions where they are imposed, potentially affecting sales and production.
He described tariffs as a “major trap” for countries pursuing such policies, suggesting they would not shield Western automakers from competition from lower-cost Chinese manufacturers.
Competitive Landscape and Social Consequences:
Stellantis anticipates a tough price battle with Asian rivals in the European EV market. Tavares highlighted the rapid growth of Chinese automakers in Europe, projecting a 10% market share and up to 10 assembly plants’ worth of production.
He emphasized the need to address overcapacity and competition from Chinese OEMs to prevent adverse social consequences.
Engagement with Labour Unions:
Stellantis is engaging in “rewarding discussions” with labor unions at its European operations, with alignment on the risks and strategies to navigate the challenges ahead.
Tavares expressed confidence in collaboration with labor unions to address the evolving landscape in the automotive industry.
