CES 2023: Stellantis preps cost cuts due to higher EV prices

By TOM KRISHER
AP Auto Writer

DETROIT (AP) — Stellantis CEO Carlos Tavares says his company has to work to cut costs globally in order to keep electric vehicles affordable for the middle class. Among the cuts are reducing the number of Stellantis factories because electric vehicles cost about 40% more than those powered by gasoline. Without cost cuts, EVs will be too expensive for the middle class, shrinking the market and driving costs up more. That’s what Tavares told reporters Thursday at the CES gadget show in Las Vegas. Stellantis began the factory reduction process in the U.S. last month when it announced plans to idle its plant in Belvidere, Illinois.