Stellantis CEO Says Rush to Affordable EVs Will End in Disaster
Stellantis NV’s Carlos Tavares is gearing up for an era of auto-industry consolidation, predicting the rush to offer more affordable electric vehicles will end in a “bloodbath.” He’s paid particularly close attention to one company he perceives as vulnerable: Renault SA.
The 65-year-old chief executive isn’t taking formal steps to pursue Renault, which is virtually off-limits due to the French state’s ownership and influence over the two manufacturers. What he has done is upstage his archrival at every turn, and ready his company to capitalize on any setbacks.
Financial Times: Renault cancels planned IPO of EV unit Ampere
Renault has cancelled plans to list shares in its new electric vehicle and software business, a pivotal part of chief executive Luca de Meo’s turnaround plans for the French carmaker.
The company had planned to hold an initial public offering of its new Ampere business, which combines its EV skills and software into a new unit. The aborted flotation is the latest casualty of slowing growth in EV sales worldwide, as mainstream car buyers balk at higher prices of battery-powered cars.
De Meo had described the unit as a European rival to “Tesla and the Chinese”, and told the Financial Times last year it should be worth “up to €10bn”.
But on Monday, Renault said that “market conditions” and the rising profitability of the wider company meant it would cancel the plans to float shares.
De Meo added that the Europe-wide slowdown in EV growth was “one of the elements” behind the decision, but stressed that the electric market was still going to be “dominant” in Europe because of the region’s decarbonisation regulations.
“EV is a train that has already left the station. Ampere will be one of the drivers of Renault to be one of the champions of decarbonisation,” he said.
But the decision may mean that alliance partners Nissan and Mitsubishi may now not invest in the unit, finance chief Thierry Piéton said. Both Japanese carmakers still have the option to invest, but “whether they come in or not is something we need to discuss”, Piéton said on Monday evening.
This is just the electric vehicles before the massive introduction of more voltage needed by our housing industry kicks off to power the crap technology.
Being last to the bandwagon saved trillions more of idiotic spending.
Is Renault still a thing? Wow, I thought they went the way of Citroen.
Anywho…Toyota CEO Akio Toyoda was right, the technology simply isn’t there and there’s a silent majority of automotive engineers, designers and corporate boardroom denizens who know it but won’t admit it publicly for obvious reasons. God forbid you piss off the
subsidyclimate high priests.And I don’t know what that says about Elon Musk but I’ll let others figure it out the hard way.
But the decision may mean that alliance partners Nissan and Mitsubishi may now not invest in the unit, finance chief Thierry Piéton said.
Hmmmm…sounds like the kiss of death to me.
Lol…”Ampere”. Fire your ad guys.
Just today Volvo announced it’s no longer funding it’s EV division.
Why it seems like only a couple years ago Vulva was going to permanently end their ICE lineup. I’m old enough to remember it!
https://www.media.volvocars.com/global/en-gb/media/pressreleases/277409/volvo-cars-to-be-fully-electric-by-2030
How long before that press release disappears down the delete key hole?!?!?!?!
Yup….this EV thing kind of reminds me of a super nova collapsing into a black hole.
https://www.wsj.com/business/earnings/volvo-car-evaluating-potential-reduction-of-shareholding-in-polestar-85e29826?mod=djemalertNEWS
“In a sign of investor unease about automakers’ march toward an EV future, Volvo shares surged more than 20% Thursday on its decision to cut off funding to Polestar.”
“Polestar” is a stupid name for a car company which I’m sure results in smaller sales figures. “Subaru” as well, which I’ve always maintained would have sold millions more cars over the last 50+ years if they had adopted a cooler name when they expanded beyond their Japanese homeland.
….see also “Yugo” and “Peugeot”. Lol
“…there’s a silent majority of automotive engineers, designers and corporate boardroom denizens who know it (the uselessness of EVs) but won’t admit it publicly for obvious reasons”
Government subsidies?
Lord knows I tried to educate a certain car company’s execs about this!
I am planning to save money on my next car.
We are going to buy a small EV that anyone in the family can push.
And if it s too cold or slick to start, push, we don’t need to go there anyway.
Governments should never be in the business of picking winners and losers.
Because their choice is always a loser…..for the tax payer.
The upcoming failure of Canada’s battery plant investments will only benefit the political class and their contributors….it will be the tax payer who takes in the shorts.
Instead of investing in decarbonization may I suggest a much more beneficial strategy of
investing in decommunization.