Stellantis Prioritizes Making EVs in Midst of Chip ShortageWith only so many semiconductors to work with, Stellantis NV is putting electric cars before combustion-engine vehicles as consumers respond to sweeteners including significant subsidies.
“We will continue to manage all powertrains together but EVs come first,” Anne-Lise Richard, Stellantis’s head of e-mobility, said in an interview in Milan. “We see more costumers that are willing to buy EVs now.”
Demand for EVs has accelerated particularly in Europe, where generous government incentives have made the models attractive relative to traditional cars. While programs on offer vary from country to country, buyers in Germany can expect to slice 9,000 euros ($10,438) off the sticker price of a fully electric car.
Europe’s second-biggest carmaker, formed from the merger of France’s PSA Group and Fiat Chrysler this year, is splurging 30 billion euros on EVs and software to compete with a wave of new electric models from competitors like Volkswagen AG. Electrified models made up 14% of Stellantis’s deliveries during the first half in Europe, and 4% in the U.S. By the end of the decade, the carmaker expects their share to rise to 70% and 40%, respectively.
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