by Gilles Guillaume

PARIS (Reuters) – Stellantis does not intend to embark on a price war in the wake of Tesla because its cars are cheaper than those of the Californian group and because it would be contrary to the objectives of the profitable growth plan of the manufacturer born from the merger between PSA and FCA.

“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 we have no intention of changing it at the moment,” said Stellantis general manager Carlos Tavares during a visit to the Metz (Moselle) factory.

“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.

Carlos Tavares warned against this price pressure from the American group, but also from Chinese car manufacturers. “On arrival, if we don’t recognize the value of the very high-tech products we make, at some point someone has to pay the difference,” he said.

For the managing director of Stellantis, the Californian group wishes above all to bring its prices back into line with the market standard and is “more concerned with growth than with profitability”.

“At some point, it will pose little problems for this company,” he added.

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.

FROM MANUAL GEARBOX TO ELECTRIFIED GEARBOX

The group also announced on Thursday a ramp-up in the production of electrified gearboxes at its Metz plant to reach a capacity of 600,000 units per year from 2024.

The eDCT dual-clutch gearbox, produced by the e-Tranmissions joint venture between Stellantis and Punch Powertrain, is at the heart of the automaker’s new 48V hybrid offering, paired with a 1.2 liters manufactured at the nearby Trémery site.

The transformation of the Metz site, from the manual gearbox to transmissions adapted to hybrids, is at the heart of the 2030 strategic plan focused on electrification and software.

A transformation is also underway at the Trémery site, long the largest diesel engine factory in the world, where Stellantis has launched production of electric motors through its joint venture EMotors.

The two projects represent an investment of 180 million euros – for industrialization and training in particular. Eventually, 500 employees should join the JV in Metz.

(Gilles Guillaume, edited by Nicolas Delame and Jean-Stéphane Brosse)

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