Profitability must not be compromised
You don’t have to count on Stellantis brands to reduce the prices of its electric cars by thousands of euros. Stellantis CEO Carlos Tavares does not seem to have any interest in participating in the price war in the car world.
Electric models in particular are regularly thrown into the promotional bin. Tesla seems to be master in lowering the prices of its cars by thousands of euros, but is far from the only car manufacturer that regularly implements drastic price cuts. Carlos Tavares – CEO of Stellantis – says he wants to avoid participating in the so-called price war. This is evident from reporting from Automotive News.
“If you start cutting the prices of your products and lose sight of the total cost, you will end up with a bloodbath,” says Tavares. “I’m trying to avoid a race to the bottom.” Tavares wants to keep the profitability of his brands intact at all costs. “I know a car brand that has implemented drastic price cuts, and the company’s profitability has completely collapsed,” the CEO continues, without indicating which brand it concerns.
The Stellantis CEO’s statements come shortly after Tesla implemented another price reduction on the Model Y.
– Thanks for information from Autoweek.nl