Let the auto industry do its job

The CEO of Jeeps SUVs and Ram Pickup truck said Wednesday that automakers are in top high-speed modes in their shift toward electrification and regulators should focus their efforts on the energy industry and building charging infrastructure.

Stellantis NV CEO Carlos Tavares said accelerating electricity targets could lead to job losses. He said electric cars represented a 50% increase in cost that would outpace middle-class products or lead to a corporate restructuring that would bear those costs.

“My recommendation to those who make regulations and call on XYZ to care about the energy industry, now let the auto industry take care of its job, which is to provide clean, affordable and safe mobility for our customers,” Tavares said during an upcoming Reuters virtual conference.

To achieve this goal, Stellantis must digest 10% of productivity per year for the next five years in an industry that used to deliver 2% to 3% yield, he said. Stellantis has committed to investing approximately $35 billion (€30 billion) in electrification by 2025 out of a research and development budget and capital expenditure of approximately $80 billion (€70 billion).

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