STELLANTIS PREPS COST CUTS DUE TO HIGHER EV PRICES

Stellantis CEO Carlos Tavares says his company has to work on cutting costs globally in order to keep electric vehicles affordable for the middle class.

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Among the cuts are reducing the number of the automaker's factories because electric vehicles cost about 40% more than those powered by gasoline.

Without cost reductions, EVs will be too expensive for the middle class, shrinking the market and driving costs up more, Tavares told reporters at the CES gadget show in Las Vegas.

"If the size of the market shrinks, you are back to square one because you are reducing the efficiency and effectiveness of your manufacturing operation," he said. "You go from hero to zero in three years if you stop working on costs."