DETROIT — According to CEO Carlos Tavares, Stellantis could produce electric vehicles using technology from Chinese subsidiary Leapmotor in Europe, North America, or other areas where it requires competitively priced models to compete with Chinese EV makers.
According to an Automotive News Europe report, Stellantis is considering constructing Leapmotor electric vehicles in Italy. Tavares explained the report is that there’s no reason to ban any country with a Stellantis facility.
Tavares told reporters via videoconference from New York that reducing the cost of electric vehicles will push global manufacturers to consolidate. However, he stated that he is not currently negotiating any significant transactions. Stellantis rejected allegations earlier this month that the company was in talks with French automaker Renault to merge.
According to Tavares, there could be as few as five big automakers in the future as incumbents seek economies of scale to compete with BYD and other emerging Chinese automakers.
According to Tavares, BYD and Chinese electric vehicle manufacturers have a 30% production cost advantage over Western automakers. He stated that if Chinese automakers decide to build plants in Mexico to export vehicles to the United States, the Mexican government will welcome the investment.
He added that Washington must choose between violating the terms of the US-Mexico-Canada trade deal and potentially increasing pressure on Mexican workers to relocate to the United States for work.
