Stellantis: “Electric cars must be cheaper before the fuel ban in 2035”

The European Union wants to ban the sale of new petrol and diesel engines from 2035. However, Uwe Hochgeschurtz, CEO of Stellantis in Europe, sees a problem. Even in eight years, electric cars will still be too expensive for many.

“Europe must ensure that almost everyone can afford an electric car by 2035,” says Hochschurtz. He leaves it open whether this should be done through subsidies or other incentives. “The ban on new gasoline cars is coming, but I think a lot of people won’t be able to afford an all-electric car even then,” Stellantis CEO Carlos Tavares said in July.

A boost for the used car market

Of course, even in 2035 there will still be an extensive second-hand market for consumers to go to, but ideally you want to send as few Europeans as possible in that direction, says Hochschurtz. Otherwise you will give the used car market a huge boost and the EU’s climate targets will not go down well.

Production costs of electric cars

Hochschutz: “If you look at the production costs of an electric vehicle, they are on average 10,000 euros higher than those of a conventional car. At Stellantis we benefit more and more from economies of scale, which reduces costs, but on the other hand we see that raw materials are becoming more and more expensive. And I don’t see this latest development going away any time soon.”

Compact A-Segmenters not profitable

In addition, compact electric cars in the A segment are not profitable for manufacturers. This already applies to city cars without any electrification. A-Segmenters have to meet the same strict safety rules as larger models, but the price has to stay low. “That’s impossible,” said Hochschurtz. Stellantis will therefore not release smaller electric vehicles than the B segment.