PARIS (Reuters) – Stellantis does not intend to embark on a price war in the wake of Tesla because it would run counter to the objectives of the strategic plan of the manufacturer born from the merger between PSA and FCA, its chief executive Carlos Tavares said on Thursday.
“I have no intention of getting into a price war, that hasn’t been our winning strategy for ten years, I don’t believe that’s the ‘Dare Forward 2030’ strategy, and for the moment we have no intention of changing it,” said Carlos Tavares during a visit to the Stellantis factory in Metz (Moselle).
“On the other hand, if the whole market were to experience a drop in prices, we would have to adjust to the market, and we will have to accelerate, like my competitors, the reduction of costs to keep the sustainability of the company”, a- he added.
Tesla has rattled the global auto industry in recent months with drastic price cuts on its electric cars in many markets.
For Carlos Tavares, this strategy reflects the fact that the Californian group is “more concerned with growth than with profitability”.
As part of its “Dare Forward 2030” strategic plan, Stellantis, one of the most profitable manufacturers in the industry, aims to double its net sales and maintain a double-digit trading operating profit margin over the decade.
(Gilles Guillaume, edited by Nicolas Delame)
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