EV cost burden not sustainable - Stellantis CEO

Speaking in an interview at the Reuters next conference released on Wednesday (December 1), Tavares said the pressure potentially threatens jobs and vehicle quality as producers struggle to manage the higher costs of building EVs.

"What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said.

"There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay."

Tavares also said that the automobile industry was well placed to deal with crises, citing issues with the supply chain and the emergence of a new COVID-19 variant, Omicron.

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