Vauxhall owner Stellantis has warned of a coming “invasion” of cheap Chinese cars as it pressures its suppliers to cut costs to compete.
The firm, which also owns Peugeot, Fiat, and Jeep, will also use its heft to demand lower prices from partners as it tries to bring down the cost of electric cars. [emphasis, links added]
Chief executive Carlos Tavares, who has been outspoken before on the high cost of battery-powered cars and the risk they pose to the mass ownership of cars, said suppliers should prepare to comb over their businesses and cut costs as he has done.
He said Stellantis faces a “brutal scenario” where it must compete with Chinese-made cars that are a quarter less expensive while having to invest billions into electrification.
Mr. Tavares told a French radio station that China’s export ambitions amounted to an “invasion”.
Chinese carmakers are targeting European markets including the UK with predominantly electric cars, undercutting companies like Volkswagen and Stellantis.
Big firms including Warren Buffett-backed BYD; Chery, which makes Land Rover models in China; and Great Wall through its Funky Cat brand plan to sell their cars in the UK.
Cheap labor costs and a much more mature supply chain for battery components in China puts the country at a distinct advantage.
Europe has plans for many gigafactories, but less than a dozen are up and running compared to more than a hundred in China.
Beijing’s investments in lithium mining and refining also put it in an advantageous position, while European countries play catchup.
Read rest at The Telegraph
