Insights

In October 2024, at the Paris motor show, leaders from Stellantis and Volkswagen emphasized the urgent need for Europe to accelerate its transition to electric vehicles (EVs). Carlos Tavares, CEO of Stellantis, warned that delaying the shift would lead to increased production costs and hinder the replacement of traditional combustion engines. He highlighted the critical next five to ten years for major car manufacturers as they face competition from China and the EU's impending 2035 ban on new combustion engine vehicles. Martin Sander from Volkswagen echoed these sentiments, urging governments to provide clear commitments towards an electric future to boost consumer demand. Amidst these discussions, concerns were raised about the EU's proposed tariffs on EV imports, which could burden consumers and hinder access to affordable electric vehicles. Tavares also hinted at potential job cuts and plant closures as Stellantis navigates these challenges, particularly in light of a profit warning due to weak demand in the US market. The event underscored the growing tensions between European and Chinese carmakers, with calls for a more rapid transition to green driving amidst fears of economic repercussions for consumers.