Carlos Tavares spoke about the FCA / PSA merger, and the causes and consequences of the creation of Stellantis. The roadmap provides for ten electrified vehicles before the end of 2021, and 35% of electric cars in 2030.
The CEO of PSA, who takes the leadership of the brand new group, formalized its creation. “There were 12,500 pages of documents for the authorities to receive information on the merger” explains Tavares. “Everything was done on time, there was no delay because of Covid-19, and Stellantis has been around since Saturday, January 16. “
A saving merger for the two groups
He confirmed that the new auto giant is Dutch, with a seat in Amsterdam. If a concern is present for the maintenance of jobs in the face of such a merger, the Portuguese explains that it has preserved the social aspect of the two groups.
” A situation in which we could not have merged would have been dramatic for jobs. The merger is a shield that protects us from social and employment problems. It guarantees the sustainability of the company. Also, if you don’t have enough ladder, you can’t provide clean and affordable mobility“, He reports.
Stellantis will allow savings for both FCA and PSA, with technical synergies that will reduce internal expenses, but especially with regard to suppliers. Tavares explained that 80% of purchases are linked to outside suppliers. The new group will reduce costs for all production volumes, in order to be more competitive. The desired objective is to dilute the R&D costs of the two groups. Electrification is also at the center of attention.
Priority for electrification and shared mobility
Stellantis’ goal is to sell 35% electric cars by 2030, and a majority of electrified vehicles, thanks to the many hybrid and plug-in models to come. On Day 1 of the creation of Stellantis, the group offers 29 electrified models. Ten will join the catalog before the end of the year, and each new model will have its electrified version by 2025.
In addition to electrification, Stellantis also relies on shared mobility. According to Tavares, this will have an impact on the number of vehicles sold, and therefore in circulation in the future. Shared mobility solutions will be implemented more easily thanks to group companies, Free2Move and Leasys.
Finally, the autonomous car is also part of Stellantis’ projects. The partnership between Fiat Chrysler Automobiles and Waymo, a Google subsidiary specializing in autonomous vehicles, will continue to be active with Stellantis.
Tavares worries about the costs of electrification
The CEO of the group is worried about the price of electrification to Stellantis and the repercussions on customers. According to him, governments must also find a way to compensate for the additional cost of this electrification. He does not propose a solution, but implies that another alternative must be found.
“We have the technology and the manufacturing capabilities. But can we be sure that this mobility will be affordable enough for the purchasing power of citizens? Electrification represents an increase in costs. Either companies put themselves in danger by reducing their margins to remain affordable, or they increase their prices to keep their margins ”, explains Tavares. “Electrification is not going in a direction where products would be affordable for everyone. It is up to governments to ask the question, to improve environmental protection? Are we continuing to work on heat engines while trying to improve them? Are we finding other solutions? It is not for us to answer them ” he continues.
This improvement can be achieved through additional aid, as well as aid to businesses. Tavares assures in any case that a global strategy is not viable under current conditions.
“We bring the technology, the manufacturing capabilities, the sales and marketing network, but can customers afford that kind of mobility? It is complex and expensive. Even if the prices will go down, we cannot deploy this technology to the whole world. Many communities cannot afford the costs of these technologies. “