To reduce the price of electric cars, Stellantis is prepared to abandon certain suppliers. CEO Carlos Tavares told journalists during a conference call from Melfi in southern Italy:
"When suppliers don't work at the same pace as our teams, our teams see a big advantage in insourcing. You come to the conclusion that you can finally do it in-house."
According to Automotive News Europe, the company, along with other carmakers, is putting pressure on its suppliers for further cost reductions.
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Chinese pressure
This news must, of course, be read in the light of the increasingly imminent arrival of Chinese competition, whose prices look set to be particularly competitive. BYD, for example, plans to offer its small Seagull (see below) at a price of less than €20,000 (approx. £17,000) next year.
The European Union is expected to take a decision soon, probably after the general election. In any case, according to analysts, Chinese carmakers already have a certain margin on profits which should not make them fear this measure too much.
Stellantis and its partners
The company's suppliers include Valeo, Continental, Magna International, Forvia and Aptiv. Tavares said that Stellantis and its partners are also adjusting levels of investment in electric vehicle batteries to meet the needs of these vehicles.
Finally, speaking about Melfi, where Jeep and Fiat models are produced, Tavares said that "productivity and quality have improved" and that he plans to allow the plant to produce its own electricity. Energy prices in Italy would be "totally uncompetitive".