the CEO of Stellantis, Carlos Tavares, answering journalists' questions at the Atessa plant was terrible. But very clear: “If we want electric vehicles to be accessible to the middle class, we must digest this additional 40 percent cost of electric engine technology compared to combustion engines. This is the brutal reality of things. We are on track to reduce these costs by 40 percent across plants thanks to the expertise of employees and managers.”
A drastic cut, which will also take place on the shoulders of suppliers. And Tavares did not save on this either: “Our suppliers – he explained – will in turn have to reduce costs by 40 percent to contribute to this reduction and guarantee the technology of electric motors”. The reason for such harshness is this: the cost structure of a vehicle is made up of 85 percent of the components and therefore there is no escape. The slimming cure will have to be drastic because otherwise the Chinese will spread, also because the EU does nothing to protect its manufacturers…
And, in fact, here too Tavares launched other torpedoes: “Europe – he concluded – leaves the market open to the Chinese so we have to face their competition which has a competitive advantage of 30 percent compared to Western competitors”.
In short, given that there will be no duties, given that EU aid will be marginal, the meaning of all this discussion is easy: either European manufacturers cut costs or it's over. Of the two, given the enormous difficulty of the first option, perhaps the second is the more truthful.
#hard #life #suppliers #FormulaPassion.it
