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Stellantis, Tavares: “Prices will rise with the shortage of components”

According to the head of Stellantis, Carlos Tavares, the increase in the prices of the cars could preclude access to some customers.

Stellantis CEO Carlos Tavares believes that rising car prices may limit accessibility for some customers. The Financial Times reported it, highlighting how this comment comes when the fourth manufacturer in the world went beyond its profitability targets in 2021. A result, I always write the newspaper, partially the result of price increases, while the lack of chips in 2021 slowed down the production of the Italian-French giant by 20 percent. This resulted in an almost tripling of net profits to a record € 13.4 billion.

“With the various shortcomings , whether it is semiconductors or raw materials, what we see is that the price of cars will increase” , Tavares said, highlighting the need to “protect the accessibility of the middle classes to new cars “ .

The average transaction prices for Stellantis’ North American cars, which also includes Ram pickups in the States, recorded a 20 percent increase in 2021 to $ 47,000, a level higher than that of the rivals Ford or GM, Tavares said.

The Russia-Ukraine crisis and the Kaluga plant

According to the CEO of Stellantis, the Russia-Ukraine crisis will not have repercussions for its business, despite the fact that the company has a plant in Kaluga , south of Moscow. The conglomerate could move production elsewhere, based on the impact of European and US sanctions, he added.

“We were using the Kaluga plant as a complement ,” said Tavares, noting that 10,000 units were built in the factory, part of the overall 1.2 million sales of light commercial vehicles in every corner of the planet.

“If we cannot supply the plants, we have to transfer that production to other plants or simply limit ourselves and raise the price,” concluded Tavares.