Carlos Tavares, CEO of Stellantis: “Why don’t we ask our competition to manufacture” electric cars for customers in France?
Stellantis chief executive Carlos Tavares said old and new automakers are competing on the same page, following a dispute with France over where it is expanding production of the electric Peugeot e-208 and after European leaders opened their doors to Elon Musk.
Governments with a voluntary interest in automakers are “a smart thing” in transitioning to electric vehicles, while emphasizing the importance of avoiding “discrimination,” Tavares said Monday.
Stellantis and French Finance Minister Bruno Le Maire clashed because Stellantis favored Spain to develop the capacity of the electric edition of the best-selling model.
“We want to be on the same playing field,” Tavares said in an interview at the Paris Air Show. “Why we ask our competition to manufacture” electric vehicles for customers in France. “It’s an idea. “
Governments across Europe are scrambling for the long-term car production jobs with the switch to electric cars requiring fewer workers. Making all-electric versions of successful compact cars is challenging because of high battery costs that erode low profit margins.
Stellantis last week unveiled the main points of an electric vehicle for its Citroen Lopass that costs less than 25,000 euros ($27,329) and is expected to go on sale early next year and will be manufactured in Slovakia.
Tesla CEO Elon Musk met last week with French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni to discuss investments in new electric vehicle and battery factories.
Macron’s government has said Tesla will build an electric car factory in France. It is looking to turn northern France, once a commercial stronghold, into a hub for battery and electric car manufacturing.
Spain has also sought to increase its battery and electric vehicle production capacity to help offset an expected decline in combustion-engine cars. VW has announced plans to build a $7. 7 billion EV center in Valencia. Local media reported earlier this month that Tesla was in talks about building a battery factory in the coastal area of Valencia.
Musk’s charm offensive in Europe also comes as Tesla’s only factory on the continent, outside of Berlin, has grown more slowly than expected due to the withdrawal of environmental equipment and Germany’s abundant bureaucracy.
These headaches led some to speculate that Musk was looking for a more favorable site for his next local factory. While it’s unlikely you’ll want it for Tesla’s existing product lines, the company is running a next generation of lower-cost electric vehicles.
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