The transition towards electric mobility does not give peace to the big names in the sector. Carlos Tavares, CEO of Stellantis, as reported by the Reuters agency, is at loggerheads with the British government. A tension, that with London, which adds to the increasingly delicate relations with the Italian executive and the unions, in this case on the unclear future of the production system on the Peninsula. Mirafiori doc.
In Tavares, looking at the United Kingdom, the so-called Zev (Zero Emission Vehicle) plan introduced at the beginning of the year which imposes practically immediate minimum sales targets for electric vehicles is not exactly popular. In case of failure to reach the targets, the law provides for the administration of heavy fines. So the top manager at the helm of Stellantis defines this provision as “bad for the country”.
According to Tavares, this provision is completely disconnected from reality as the state of the art sees the demand of the British market for electric vehicles representing half of the imposed target (minimum share of 22% in 2024, which progressively becomes 80%, by 2030, and 100% by 2035). «We are at double the real demand», underlines Tavares. «It is a rule – the CEO of Stellantis always warns – which in addition to putting margins at risk, would force manufacturers to start a real war on the price lists with serious repercussions on profitability».
What is happening in the United Kingdom represents just one of the many problems not taken into account by the EU plan for “all electric” from 2035, with the simultaneous stop to the production and sale of internal combustion vehicles. Hasty decisions dictated by ideology which are starting to bring out uncomfortable situations and strong employment fears.
The latest update on the global automotive scenario, drawn up by AlixPartners, highlights, in this regard, how the electric turning point «for Western car manufacturers today does not yet have a response in terms of demand and economic and financial sustainability». Furthermore, AlixPartners always warns, «in Italy 30% of the workforce of component companies will be impacted by the electricity transition which, barring increasingly awaited regulatory rethinks, drives the majority of the reconversion challenge together, obviously, with the volumes expressed by the market ; the risk for Italian component manufacturers is 7 billion in value loss by 2030 and 40 thousand positions in potential redundancy”.
Time for rethinking, meanwhile, for Hertz (car rental) which has announced the gradual elimination of more electric cars than initial plans: 30 thousand will be put up for sale, compared to the 20 thousand expected, out of a fleet of 60 thousand units.
The reason: low level of demand and high repair costs.
