EV transition to be ‘significant burden’ for auto suppliers, Stellantis CEO says

By Thomson Reuters May 29, 2024 | 8:43 AM

MILAN (Reuters) – Stellantis Chief Executive Carlos Tavares said on Wednesday the transition to electric mobility would involve a “significant burden” also for auto suppliers, as the industry races to cut costs.

Tavares said production costs for electric vehicles are higher than those for equivalent petrol cars, forcing automakers to cut them in every aspect of their operations, including supply chains and logistics.

“The EV race has become a cost cutting race,” he said during a Bernstein conference.

(Reporting by Giulio Piovaccari and Gilles Guillaume, editing by Alvise Armellini)