On Friday, Stellantis CEO Carlos Tavares urged Italian lawmakers to introduce new state incentives to help consumers purchase electric vehicles, arguing that production costs in Italy remain too high. Speaking to the Parliamentary Committees for Productive Activities and the Senate Industry Commission, Tavares highlighted that building electric cars in Italy is significantly more expensive than in other countries, largely due to the high cost of energy.
Tavares’ appearance came amid concerns over Stellantis’ recent reduction in Italian production and its request for wage support for thousands of workers. Stellantis, formed in 2021 through the merger of PSA Group and Fiat Chrysler, has shifted much of its manufacturing and design operations abroad since its inception, leaving Italy’s role in the company’s production network diminished. Despite this, Tavares reassured lawmakers that Stellantis has no plans to leave Italy, emphasizing new projects for electric vehicles that will be produced domestically for both local and export markets.
The automotive sector, including Stellantis, is grappling with the global shift toward electric vehicles, a transition many companies, including Fiat, have been slow to embrace. The delay in adopting electric technology, coupled with limited investments in innovation, has left Europe trailing behind China, which now leads in electric vehicle production and related technologies. Tavares pointed out that China enjoys a competitive edge, with production costs up to 30% lower than Italy’s, further exacerbated by Italy’s significantly higher energy prices, which are double that of Spain.
Tavares stressed that without substantial incentives to stimulate demand, the shift to electric vehicles will continue to strain the Italian market. He argued that electric vehicles currently come with a 40% higher cost than traditional combustion vehicles, a burden that would eventually impact the entire supply chain. “I need to be able to sell electric vehicles at the same price as combustion vehicles,” Tavares explained. To make this viable, he called for financial support targeted at middle-class consumers to make electric vehicles more affordable.
However, Tavares’ appeal was met with skepticism by several opposition politicians. Carlo Calenda, leader of the Azione party, criticized the Stellantis CEO, accusing him of making empty promises: “The only certainty is that the million cars he promised no longer exists. He’s asking us to find a million customers through incentives. What he’s really saying is, ‘Give me the money,’ which is an unacceptable demand.”
