Leaders of two major European car producers have highlighted concerns about speeding up Europe's shift to electric cars amid ongoing EU disputes over phasing out traditional combustion engines. Carlos Tavares from Stellantis (owners of Peugeot, Vauxhall, Jeep and Citroën brands) along with Martin Sanger, sales head at Volkswagen passenger vehicles, voiced these concerns during the Paris auto show to counteract those resisting this eco-friendly change.
Tavares emphasized that delay in transition would result in higher production costs rather than a smoother switch from old models for new ones due to maintaining both systems concurrently on the assembly line—a costlier approach he refers as a "trap." Sanger, aligning with Tavares' viewpoint, urged governments at their earliest convenience towards phasing out combustion engines.
The next few years are critical for many of Europe’s key car manufacturers while the EU tries to counter China-imported EV competition via imposition on import tariffs up until 45%. This pressure has forced some producers already retracting their original strategies to phase out combustion engines.
Sander, managing Volkswagen's passenger car sales and marketing department, expressed his hope that politicians will display clear commitments towards an electric future which should concurrently ignite customer demand for EV cars—his sentiments echoed at the Paris motor show, a prominent industry gathering each year.
Under immense pressure following profit warning due to weak US demands in September, Tavares conducted multiple media appearances on Monday alone; he also participated several events during this timeframe. When interviewed by French radio RTL channel, apart from not ruling out job cuts and potential plant closures or brand sell-off—which the company had already hinted at earlier about UK plants risk specifically —Tavares stated that efforts would be necessary to keep up with Chinese competition for sustained profitability.
Adding a different perspective was Stella Li, executive vice president of BYD (a large conglomerate from China), who criticized the proposed EU import tariffs as unjustly high and unfair towards European consumers—potentially dissuading less affluent ones from EV purchases. She emphasised that these levies are not a justified judgment, voicing concerns about their impact on consumer choices at this significant juncture in the auto industry's evolutionary journey to more sustainable practices and technologies worldwide.
Read next
Jaguar Land Rover suppliers voice ‘everything is against us’ amid cutbacks
David Roberts, chair of Coventry-based Evtec, says the outlook for Britain’s automotive sector is grim, with “everything against us.” Evtec is a tier 1 supplier to Jaguar Land Rover, which this week announced 4,000 job cuts over two years despite chancellor John Healey’s attempt to talk
Europe’s fighter jet plans in disarray: what comes next?
When former ECB president and Italian PM Mario Draghi urged Europe to catch up economically with the US and China, defence collaboration was prescribed. No more should each nation build independent boats, tanks or jets; allies should share costs and technologies.
Europe stumbled at the first hurdle. German Chancellor Friedrich
John Healey supports growth but insists Labour must be truthful about spending
John Healey has stated that his primary goal as chancellor will be to boost economic growth, while acknowledging that Labour must be straightforward about controlling public spending at next month's budget.
In his first major address since assuming the role in July, Healey said the leading focus of