Stellantis CEO Carlos Tavares announced plans to introduce a $25,000 all-electric Jeep vehicle in the U.S. in order to attract mainstream consumers and address the slow adoption of electric vehicles. Tavares revealed little information about the upcoming vehicle but mentioned that it will be priced similarly to Stellantis’ Citroen e-C3 SUV, which starts at around $25,200 in Europe. He emphasized that Stellantis is utilizing its global engineering expertise to develop this affordable EV.
Currently, Stellantis offers an all-electric version of its Avenger SUV in Europe, starting at approximately $37,800. However, this vehicle is not available in the U.S., where the automaker has focused on plug-in hybrid electric Jeeps. The introduction of a new EV priced at $25,000 has been a target for automakers like Stellantis and Tesla, as well as Chinese automakers such as BYD and Nio, who have seen success with their affordable EVs in markets outside of China.
Tavares highlighted the importance of offering an affordable battery electric vehicle (BEV) and stated that Stellantis’ goal is to bring a safe, clean, and affordable BEV priced at $25,000 to the U.S. market. He also mentioned that the company expects to achieve cost parity between its all-electric vehicles and traditional internal combustion engine vehicles within the next three years to better compete with the “China invasion” of affordable EVs.
However, Tavares acknowledged the challenges and uncertainties surrounding the automotive industry, including the competition from Chinese automakers and the ongoing transition to electric vehicles. He referred to this period as “very chaotic” and “Darwinian,” indicating that only the fittest will survive. Tavares believes that despite tariffs and protectionist measures, competition cannot be stopped and shrinking within a bubble will only delay the inevitable.
Speaking about the geopolitical tensions related to China-made EVs, Tavares acknowledged that tariffs, such as those implemented by the U.S., may slow down the expansion of Chinese EVs but will not completely halt it. He emphasized that relying on protectionist measures will not make a country competitive in the long run. The recent 100% tariff announced by the Biden administration on Chinese EV imports does not address gas-powered vehicles or imports made by Chinese automakers in other countries.
In conclusion, Stellantis plans to introduce an affordable all-electric Jeep priced at $25,000 in the U.S. to attract mainstream consumers. This move is in response to the slower-than-expected adoption of electric vehicles and the growing competition from Chinese automakers. While tariffs and protectionist measures may have some impact, Tavares believes that competition cannot be stopped and that the automotive industry must adapt and evolve to succeed in this challenging period of transition.
