Stellantis wants to build low-cost electric cars, but is encountering resistance in the United States from the union of employees in the car industry.
That reports news medium Automotive News. For Stellantis - the parent company of, among others Peugeot, Fiat, Citroën, Opel and ten other car brands - reaching an agreement with the union is very important, as keeping production costs low is crucial to the development of a low-cost electric car with a target price of $25,000.
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However, Stellantis' desire to keep production costs low is inconsistent with the demand of the automotive workers' union (UAW) to raise wages and improve benefits. The contract negotiations between Stellantis and the UAW are therefore very difficult. Currently, it looks like building the $25,000 electric car will be impossible.
“Stellantis’ severe budget cuts have resulted in closed factories and destroyed communities,” said UAW president Shawn Fain. “The business model that Stellantis is using is not right, and until they take a different approach, the $25,000 EV is never going to happen.” According to Fain, Stellantis has "spit in the face" of UAW members with proposals such as stricter attendance rules, reduced health care coverage and other concessions.
Stellantis CEO Carlos Tavares, speaking to Automotive News, emphasizes the importance of a positive outcome of the contract negotiations between Stellantis and the UAW: “We have to work very hard to reach that price point. It is important that we discuss with our union partners how we can make affordable electric cars in the US that the middle class can buy and are profitable at the same time.”
According to Tavares, if the negotiations fail, there is a danger that the high production costs will be passed on to customers. In this way, according to the CEO, the middle class is priced out of the EV market. After all, in this situation the price difference between cars with a combustion engine and electric cars would continue to exist.
In Europe, Stellantis is further developing the affordable EV of 25,000 euros. So will the Citroën ë-C3 will be introduced in early 2024, and the affordable electric Fiat Panda July 11, 2024 will be presented:
This post was last modified on August 17, 2023 3:22 am
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