Stellantis starts with an electric Jeep, making a commitment to target new energy | Whuff News

Stellantis CEO Carlos Tavares poses next to the Jeep Avenger at the Paris Motor Show on October 17, 2022.

Nathan Laine | Bloomberg | Getty Images

CEO of Stellantis told CNBC on Monday that the company will use its facilities to produce half of the energy it needs by the middle of this decade.

“We have made the right investment so that Stellantis can, from a production point of view, by 2025 produce 50% of our energy needs in our areas,” Carlos Tavares, who spoke to CNBC’s Charlotte Reed at the Paris Motor Show, said.

Tavares’ comments came as Stellantis prepared to launch what he called “Jeep’s first pure EV” after details of the car were published last month.

According to Stellantis, the Jeep Avenger’s “target electric range” is 400 kilometers, or less than 249 kilometers.

The firm – whose brands include Fiat, Chrysler and Citroen – is set to open bookings for the Avenger on Monday, and it is set to arrive in showrooms next year.

Stellantis wants all passenger cars in Europe to be battery electric by 2030. In the US, it wants a “50% passenger car and light-duty truck BEV sales mix” at the same time.

The above target comes as major economies make plans to move away from internal combustion engines in favor of battery electric cars.

Learn more about the power from CNBC Pro

Shift to electric vehicles

During an interview with CNBC, Tavares was asked if talking about the recession, cost of living problems, inflation and energy prices will have the effect of delaying the transition to electric vehicles.

Of course, power is the first condition for the success of electrification, no wonder,” he replied.

“The question you are asking me is a question you should ask the political leaders because you know that the installation of electricity is due to principles,” he said.

“So yeah, it’s definitely a bump in the road,” he added later. “I hope it’s a short-term obstacle that we will all overcome, and Stellantis is now full speed ahead of all electric cars, starting with the new Jeep Avenger, the first pure EV Jeep.”

Asked about the EU’s plans to end the sale of new ICE cars and vans by 2035, Tavares said “it is clear that the decision to ban clean ICEs is a drastic decision.”

Expanding on his point, the Stellantis chief said he would suggest that European political leaders “be more pragmatic and less dogmatic.”

“I think there is a possibility – and a need – for a change management approach.”

Stellantis’ electric vehicle plans put it in competition with firms like Elon Musk’s Tesla and companies like Volkswagen, Fordand GM. According to the International Energy Agency, sales of electric cars are on track to hit a record high this year.

In recent years, a range of conditions have created pressure points when it comes to the supply of essential materials for EVs, an issue the IEA highlighted earlier this year in its Global EV Outlook.

“The rapid increase in EV sales during the pandemic has tested the resilience of battery supply chains, and Russia’s war in Ukraine has exacerbated the challenge,” the IEA report said, adding that prices of materials such as lithium, cobalt and nickel “he went up..”

“In May 2022, lithium prices were seven times higher than in early 2021,” it added. “Unprecedented battery demand and lack of fundamental investment in new energy supply are key factors.”

On the raw materials needed for EVs and their batteries, Mercedes-Benz CEO Kallenius outlined the current state of play as he saw it.

“Commodity prices have been very volatile over the past 12 to 18 months – some have gone up and some have come back,” he said.

Learn more about electric vehicles from CNBC Pro

“But it’s true that as we become electric, all-electric and more and more automakers enter the electric space, there is a need to increase the mining capacity and improve the capacity of lithium, nickel, and some of those materials that are needed to produce electric cars.”

“We have everything we need now, but we need to look to the medium to long term and work with the mining industry here to increase capacity.”

Source link