Stellantis CEO says automaker won’t sell EVs at a loss like other carmakers

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Carlos Tavares, CEO of Stellantis, poses during a presentation at the New York International Auto Show in Manhattan, New York, on April 5, 2023.
David Dee Delgado | Reuters

Stellantis won’t sell electrified vehicles such as hybrids and all-electric models at a loss like other automakers have, CEO Carlos Tavares said Friday.

Tavares, who has been skeptical around consumer adoption of EVs, said the company is currently making money on its electrified vehicles and will continue to do so with its next-generation vehicles, which Stellantis released additional details of Friday.

“Being in Europe as much as in the U.S., we are making money with the electrified vehicles,” Tavares said during a roundtable Friday. “We are making money, and it is in our discipline to make sure that whatever we sell we make money with because, if not, then the company will not be sustainable.”

Some automakers, including one of Stellantis’ predecessors, Fiat Chrysler, have sold EVs at a loss to spur sales, meet fuel economy standards or build up capacity in hopes of eventually making the vehicles profitable.

Stellantis currently has 25 EVs available globally and expects to launch another 23 through the end of this year.

The company previously announced an all-electric version of the Jeep Wrangler SUV and a Dodge muscle car. An all-electric version of the Ram 1500 pickup is also expected to be released early next year.

Tavares said the automaker remains committed to its plans to invest 50 billion euros ($54.4 billion) in electrified vehicles and related technologies through 2030, despite a slower-than-expected adoption in many countries.

“There is no such thing as slowing down for the EV roadmap for Stellantis,” he said Friday during a virtual media roundtable.

However, Tavares did say those plans could change based on consumer demand and potential political changes that could result from elections this year in the U.S. and Europe.

New architecture

A few of Stellantis’ forthcoming vehicles will be on the company’s “STLA Large” platform, which it revealed details of Friday.

The “STLA Large” platform is just one of four architectures, or brains of the vehicle, that will support the company’s next-generation models.

The company said it plans to launch eight new vehicles, including all-electric models, on its newest “STLA Large” platform that will underpin the vehicles through 2026. Stellantis did not specify how many of those vehicles would be electric, as the platform will be able to support other propulsion systems as well, such as plug-in hybrid electric vehicles (PHEVs), non-plug-in hybrids and traditional internal combustion engines.

Stellantis said the EV models on the Large platform will be available in 400-volt and 800-volt battery electric vehicle architectures, allowing for a variety of charging speeds and driving range of roughly 500 miles for sedans.

Tavares said vehicles on the platform will first be released in the North American market, starting with the Dodge and Jeep brands, followed by Alfa Romeo, Chrysler and Maserati.