Stellantis May Shut More Plants as Electrification Costs Bite
- Automaker needs to keep cutting costs to make EVs affordable
- Stellantis still in ‘difficult’ talks with its Chinese partner
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Stellantis NV may idle additional car manufacturing plants as it grapples with higher inflation on top of the cost of electrifying its lineup, Chief Executive Officer Carlos Tavares said.
“If we don’t optimize our cost structure, we cannot absorb the additional cost of electrification,” which risks leading to elevated car prices and a shrinking market, Tavares told reporters in Las Vegas for the Consumer Electronics Show. “If the market shrinks, we don’t need so many plants. Some unpopular decisions will have to be made.”