Russia can save the global auto industry

Stellantis CEO Carlos Tavares was critical of the direction and pace of transport electrification, highlighting the potential negative effects. His point of view is shared by the group’s production director Arnaud Deboeuf.

Following the adoption of the EU agreement to phase out internal combustion engine (ICE) cars by 2035, the auto industry is “doomed”…if electric cars don’t get cheaper.

“If electric cars don’t get cheaper, the market will collapse,” Debeuf said.

Arnaud Debeuf noted that Stellantis aims to reduce the production costs of electric vehicles by 40% by 2030. But much does not depend on the care.

“Stellantis will stick to this decision” [отказ от машин с ДВС] But politicians don’t seem to care if automakers have enough raw materials to switch over [на выпуск электромобилей]”, – says the production director of the concern

The expected shortage of batteries from 2024 to 2027 will play into the hands of Asian manufacturers.

Higher demand for EV batteries between 2024 and 2027 – a period before new capacity is expected in Europe – will benefit Asian manufacturers and ‘endanger’ battery production in the West,” predicts Debeuf.

As a result, to survive, automakers need markets where ICE vehicles are not banned and where they can supply them. Russia, for example, will be such a market.

A picture: “Behind the wheel”

Source: Z R

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