Stellantis NV chief executive officer added fuel to a growing tug of war with France over where the carmaker will expand output of the EV sibling to the best-selling Peugeot 208.
(Bloomberg) — Stellantis NV chief executive officer added fuel to a growing tug of war with France over where the carmaker will expand output of the EV sibling to the best-selling Peugeot 208.
Europe’s second biggest carmaker after Volkswagen AG is leaning toward enlarging capacities for the Peugeot e-208 in Spain, Bloomberg reported in April. Finance Minister Bruno Le Maire wants Stellantis to make the compact model locally and has raised the matter with Carlos Tavares.
Stellantis has committed to making 12 EV models in France with investments to make electric motors in Tremery and a battery plant in Douvrin. Another factory in Metz is ramping up production of electrified dual-clutch transmission gearboxes, the CEO told reporters visiting a plant in Rennes Thursday.
“Don’t you think we’ve done a big part of what needed to be done in this country?,” he said. “What could I do more? You tell me. You could ask to me put the company in peril and I won’t do that.”
Governments across Europe are fighting over the future of automaking jobs with the shift to EVs requiring fewer workers. Securing output of a mass-market vehicle like the 208 would be a coup with the vehicle’s combustion version ending the 14-year reign of Volkswagen’s Golf in Europe last year. Spain is among countries offering competitive taxation frameworks and labor costs for EV manufacturing.
Stellantis’s returns in Europe lag far behind other regions, with the company seeking to ensure it’s making affordable cars for middle-class buyers, Tavares said. It’s already partnering with the French state on a €100-a-month EV leasing plan, he added, while casting doubt over the country’s future incentives for purchasing EVs in light of high debt levels.
While Stellantis has pledged to produce 12 EV models in France, they’re mostly larger, higher-end models like the e-308 sedan and e-408 crossover.
“Europe has created its own strategy and must live with the drawbacks of the strategy it picked,” Tavares added.
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