Stellantis will stay away from price wars, says CEO

Stellantis CEO Carlos Tavares said on Friday that his company will stay away from price wars or bring down prices of vehicles that could destroy profitability.

The parent of several automakers managed to get upstream in the automotive industry in 2023 compared to some competitors who tried the price reduction route.

He said “I know a company that has brutally cut pricing and their profitability has brutally collapsed” without mentioning a name.

Stellantis

The latest comments from Stellantis chief came after Tesla, the most popular global electric vehicle (EV) maker slashed prices in both Europe and China.

Tavares also gave his thoughts on the current Red Sea disruptions and said that there’s more impact from such issues on Stellantis. However, he eventually talked about the cost of transportation, which will be added to the company’s expenses due to re-routing.

Tesla and Volvo confirmed pausing production at their key plant in Germany caused of the Red Sea shipping problem.

The Stellantis veteran added that the company would continue to source its supplies from the Far East without disruption.

Stellantis also marked a major deal with SIXT a multi-billion euro agreement on Tuesday that includes the sale of 250,000 vehicles for SIXT rental vehicle fleet.

(source – GlobeAndMail)