At first glance, one would not associate the foundation of a new era of cars with political matters or voting.

However, at Stellantis, the recent announcement of new foundations for larger vehicles is crucial in enabling the company to adapt to the evolving electric vehicle regulations set by the European and U.S. governments, which may be influenced by the outcome of this year’s elections.

The CEO of the company, Carlos Tavares, states that their new extensive platform is adaptable for various components such as batteries, electric motors, hybrid systems, and traditional combustion engines. Additionally, the company has the capability to manufacture medium to large sized vehicles using this foundation, including sedans, crossovers, SUVs, and even rugged Jeeps.

According to him, being adaptable is crucial as regulations advocating for electric vehicles in the fight against climate change may be reversed depending on the outcome of elections for the U.S. president or European parliaments this year.

Tavares frequently asserts that producing EVs costs 40% more than traditional combustion engine vehicles, resulting in higher prices that are not within reach for the middle class. In an attempt to increase EV sales, governments have implemented subsidies and tax credits, but some nations are now reconsidering their effectiveness.

Tavares stated that if the affordability problem is not addressed with a substantial subsidy, consumers will cease purchasing. This message is clearly conveyed.

Sales of electric vehicles are starting to decrease in various countries due to consumers being hesitant about the extra expense and the limited driving distance, as well as insufficient charging infrastructure. Last Friday, Ford announced a reduction in production of their F-150 Lightning electric pickup truck, citing lower-than-anticipated sales growth for electric vehicles.

Several political candidates, such as the leading Republican nominee Donald Trump in the United States, have expressed disapproval towards the transition to electric vehicles and have suggested that they would discontinue policies aimed at encouraging their use.

According to Tavares, Stellantis, the company responsible for producing Jeep, Ram, Dodge, and other vehicles, has devised two potential scenarios. One scenario would involve increasing the production of electric vehicles (EVs) if candidates who support them are elected. The other scenario would involve slowing down the production of EVs if candidates who are against them are elected. Tavares clarified that the goal is not to completely halt EV production, but rather to address and resolve the issue of global warming.

According to Tavares, certain European countries are mandating electric cars for citizens who cannot financially support them. As a result, many people are choosing to keep their current vehicles for a longer period of time, which is causing the average vehicle age to increase. Tavares believes this is harmful for the environment.

According to him, Stellantis is currently profitable with its electric vehicles, which sets it apart from other companies. Those unable to sell their vehicles at high prices will not have the funds to develop more affordable models. As a result, they may either merge with another company or face bankruptcy.

Tavares stated that if businesses continue to decrease the prices of electric vehicles in order to entice customers without generating profit, it could lead to a catastrophic situation in the industry.

Stellantis announced that the new large platform will be utilized for vehicle production in numerous factories located in North America and Europe. The initial vehicles expected to launch in North America include a successor to the Dodge Charger muscle car and an updated Jeep Wagoneer S.

According to the company, the platform is capable of supporting front wheel drive, all wheel drive, and rear wheel drive vehicles. The initial release is scheduled for this year, with a total of eight vehicles from Jeep, Dodge, Chrysler, Alfa Romeo, and Maserati expected to be available for purchase by the end of 2026.

The company has the ability to adjust the dimensions of their vehicles and make them distinct from one another through modifications in ride and handling, as well as features in the interior such as infotainment. Unlike its competitors, the company uses a single platform for both battery-powered and gasoline-powered cars, which is a rare practice in the industry where most manufacturers have separate chassis for each type of engine.

Tavares stated that the adaptability and quick responsiveness of this platform is its defining feature and will play a significant role in our triumph in transitioning to electrification in North America.

The company announced a midsize vehicle platform last year, which offers comparable versatility. The company also has plans for a new platform for smaller vehicles.

Source: wral.com