The CEO of Stellantis, Carlos Tavares, speaks freely about the future of the group. On the sidelines of the dynamic test of the new Alfa Romeo Tonale, the Portuguese manager spoke of the impact of the war in Ukraine, but also of energy, sustainability and electrification.
The impact of the war in Ukraine on Stellantis
“The impact of the war on Stellantis is marginal for now, there is a limited economic impact on the company. But it is clear that the impact of this war on the external environment, such as on inflation, will be very significant but it will be like this for everyone, not just for Stellantis", explained the manager, adding that "We are in the same conditions as the competitors . The external environment will be damaged, it's true, but things are under control for Stellantis”.
The energy supply
“The question mark today is what Europe, as a global region, will do on the energy supply front,” Tavares said. "I believe that Europe will accelerate electrification with less dependence on fossil fuels", he added, underlining how the war in Ukraine has brought the energy question back to the table, also reopening the debate on nuclear power.
The supply of clean energy, said the CEO of Stellantis, “is exactly the point we have been raising for 7 years, unfortunately the level of active listening by governments has not been very high. Now we ask ourselves: where will the energy come from?”. How will it end? According to Tavares there will be “a rift in Europe, there are those who will increase renewable energy (for example in Portugal it is 61%). Other countries will go back to what they have always thought, for example France to nuclear power and the Eastern bloc will have to decide whether to go back - stick to fossil fuels for longer - or accelerate on renewables. Or find new sources of gas”.
“As Western societies we should have started with (clean) energy before imposing electric vehicles,” he stressed. “In the last 7 years we have told the heads of state that we need to start with energy. A few years ago the level of trust in car manufacturers was not very high. We listened to the stakeholders but we weren't listened to much. We have always said that we would produce electric cars, today they exist and can be bought”, but “there was another strategic point and that is energy”.
Chip problems continue
“The supply of semiconductors is still problematic. It's getting better with some vendors, less so with others. The situation is similar to 2021, we will not see major improvements in 2022,” Tavares said. “The difference is that the number of problematic supplier companies is decreasing, many suppliers have figured out how to manage their supply chain and can help us. Others haven't been able to do it." Speaking of the future, the CEO predicts that "Things will start to improve in 2023. In my plan, I don't foresee an improvement as early as 2022, I want to maintain sustainable forecasts".
The brands of the group
"Often they tell me to cut a brand, but I don't think it's ethical, a brand has a long history behind it, I love our brands and I want all my brands, including the Italian ones, to have a chance," he said Tavares. "I'm trying to give all Italian brands a chance, so that they can demonstrate their talent and have recurring profits that allow them to have a clear future", he said, explaining that he gave "10 years to the CEOs of each brand to plan products and strategies and now they have the funds available”.
