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Written by Joseph White
DETROIT (Reuters) – Stellantis will build on technology from its Chinese subsidiary Leap Motor in Europe, North America and other markets that need competitively priced models to compete with Chinese electric car makers. CEO Carlos Tavares said on Tuesday that the company has the potential to produce electric cars with a 100% capacity.
“At some point, Western governments may be tempted to block exports from China,” Tavares said. “We have the opportunity to build Leap Motor cars in a bubble. It could be in Europe, it could be in North America.”
Stellantis is considering building Leap Motor’s EVs in Italy, Automotive News Europe reported earlier this week. “There is no reason to exclude countries where Stellantis factories are located,” Tavares said.
Pressure to reduce electric vehicle costs will force consolidation among global automakers, Tavares told reporters in a video conference from New York. However, he said he was not considering any major transactions himself.
“Enough is enough,” Tavares said.
Earlier this month, Stellantis denied rumors that it was considering a merger with French automaker Renault.
Tavares said there could ultimately be as few as five major automakers as incumbents seek to achieve economies of scale to compete with BYD and other emerging Chinese automakers. Ta.
“You can debate whether it’s a good thing to use antitrust laws to prevent Western companies from coming together to fight big Chinese companies like BYD,” Tavares said.
Tavares said automakers are under pressure to “sell EVs at ICE prices” and use the acronym for internal combustion engine. “Unless we can sell EVs at ICE prices while making a profit, we are not doing what consumers expect.”
Tavares said BYD and Chinese EV makers have a 30% production cost advantage over Western automakers.
Tariffs “are a useless protection,” he said.
He said if Chinese automakers decide to build factories in Mexico to send vehicles to the United States, the Mexican government would welcome the investment.
He said the United States must choose between breaking the rules of the U.S.-Mexico-Canada trade agreement or increasing pressure on Mexican workers to move to the United States for jobs.
(Reporting by Joe White; Editing by Barbara Lewis)
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