Stellantis CEO Tavares outlines EV strategy in North America this year
Jamie L. LaReau, Detroit Free Press
Updated 6 min read
Stellantis CEO Carlos Tavares is not in a position to be afraid. There's too much work to do to launch new electric vehicles in North America this year and be nimble in the event an election changes the course of EV adoption.
That was his message to the news media Friday when discussing the automaker's newest EV platform.
Tavares said Stellantis is aggressively executing its EV strategy but he is prepared to shift gears if need be, depending on the results of the U.S. presidential election and the European parliamentary elections later this year.
Stellantis CEO Carlos Tavares speaks during a keynote address at the Consumer Electronics Show (CES) in Las Vegas, on Jan. 5, 2023
“I have prepared two scenarios based on what would be the results of those major elections in the U.S. and Europe and I am prepared for both," Tavares said. "One is an acceleration scenario for BEVs (battery electric vehicles) and one is a slowdown for BEVs. I am not in a position to be afraid. In this industry, we have faced crisis after crisis, so we don’t have room to be afraid anymore."
Tavares said if a Republican is elected president, there would likely be a slowdown in the push for EV adoption. The automaker is investing more than €30 billion ($33 billion) through 2025 in electrification and software, including fast charge capability.
"I am maintaining the suite of products, timing and capacity for EVs for the time being," Tavares said, when it was noted that rival Ford Motor Co. is cutting production of the F-150 Lightning electric pickup after weaker-than-expected EV sales growth. "Then we will see what comes off the election. There is no such thing as slowing down on the EV road map for Stellantis" as of now.
Built for speed, luxury, rock climbing
Tavares said the EVs Stellantis sells in Europe and the United States are profitable but to grow volume means bringing down the prices.
“We have a lot of work to do and we are doing that work in terms of the cost," Tavares said. "In three to four years, we have to absorb 40% of the additional cost compared to internal combustion engine vehicles ... to come up with a price people want to pay. It’s what we are working on, it’s difficult work. The profile of our company is that we are not bad at cutting cost, it just takes some time.”
Stellantis just launched the Ram ProMaster electric van this month; Tavares said he delivered the first one "the other day to our Amazon customer. It was a very nice, warm moment.”
Tavares' comments came after the automaker, which makes Chrysler, Dodge, Jeep, Ram, Fiat, Alfa Romeo and Maserati brands, unveiled its new battery-electric vehicle platform, called STLA Large, on Friday. There are four Stellantis global EV platforms: Small, Medium, Large and Frame.
“STLA Large can be summed up with one word: flexibility," said Marc Issner, Stellantis' Large platform chief engineer. "Through thoughtful engineering, we have designed and developed a base set of systems and components which can be scaled to support the overall width, length, ground clearance, front and rear overhangs and functional performance objectives for an array of Jeep and E-segment vehicles across the globe.”
Stellantis unveiled its new STLA Large platform on Jan. 19, 2024. It will underpin full-size electric vehicles and is capable of 500 miles of range.
The STLA Large will be the base for several upcoming EVs but it can also support hybrid and gasoline-powered vehicles. It is one of the automaker's four EV architectures and it is designed to deliver up to 500 miles of range. Designers and engineers have the flexibility to adjust the platform’s length and width and powertrain configuration to tailor it to specific product designs, Issner said.
“If you want a curve-hugging, track-ready performance vehicle, a smooth riding luxury car or a rock-clearing off-roader, we’ve addressed these needs within the platform," Issner said. "Through adaption of cradles and suspension models, we can efficiently tailor ride, handling and off-road capability to meet the intended functional objectives."
0 to 60 in 2 seconds
STLA Large will be installed in several plants in Europe and North America. Stellantis unveiled STLA Medium in July of last year, it will get 435 miles of range.
Full-size vehicles based on STLA Large are the core of customer demand in prime global markets and will be used first in the North American market on Dodge and Jeep vehicles, then by Alfa Romeo, Chrysler and Maserati, Issner said. It has a wheelbase range of 113 to 121.1 inches. Its ground clearance is 5.5 inches to 11.3 inches. The maximum tire diameter will be 32.6 inches.
There will be eight vehicles launched from 2024-26, Issner said. The company did not release specific details of which vehicles would be underpinned by STLA Large or which plants it will be installed in. But spokesman Rick Deneau told the Free Press on Friday that, depending on brands and models, the eight vehicles will be available with one or more energy propulsion system.
"At this stage, we are not disclosing further details," Deneau said.
The initial generation of propulsion components could potentially deliver acceleration of 0-62 mph (100 km/h) in about two seconds, acceleration that is necessary, Tavares said.
"I am living in the deep countryside of Portugal. I live on a farm," Tavares said. "The acceleration power is first a matter of safety. It is a matter of overtaking in safe conditions, making sure you can change lanes, overtake a truck on a two-lane road. It is not about speed. We are happy that electric vehicles carry that kind of capability."
STLA Large will support both 400-volt and 800-volt electrical architectures and battery packs and it is engineered to accept future EV technologies as they are developed. Issner said the 800-volt system will enable 4.5 kilowatt hours of charging per minute. Generally, an 800-volt charging system can add about 100 miles of range in 10 minutes.
The Ram 1500 Revolution Battery-electric Vehicle (BEV) Concept front three-quarters.
Last January at CES in Las Vegas, Stellantis unveiled a concept pickup, formally the Ram 1500 Revolution Battery-electric Vehicle, and said the truck would be built on a platform that it has said can manage up to 500 miles on a charge.
Troubles on the Red Sea
Meanwhile, since mid-November, the Yemen-based, Iran-backed Houthi rebel group has been attacking commercial ships in the Red Sea, forcing shipping companies carrying goods to and from Asia and Europe to avoid the route, according to PBS News Hour. Instead, they take the longer, and more costly route, around the horn of Africa. The diversion threatens to disrupt supply chains and boost consumer prices just as global inflation was beginning to ease.
Tavares told the news media that should not create much disruption for Stellantis in the long run.
"It is more about the length of the travel," Tavares said. "If you go around the south of Africa you need more time to get to the Western world than if you go through the Red Sea. When that additional time for the travel is absorbed, I don’t expect much impact."
But it may have an impact on the cost because of the extra time and distance for the longer route, he said. If so, Tavares said the company will discuss that with suppliers, but "so far it’s OK. Things are moving well. I don’t suspect it … will be a major problem for the industry.”
General Motors spokesman Kevin Kelly said Thursday that GM has been monitoring the Red Sea situation as well and "it’s not expected to have any significant impact to our operations."
