Alexandre
In an interview with Spanish media El EspanolOlivier François, CEO of Fiatexpressed a strong conviction: electric cars will soon become less expensive. This statement is attracting a great deal of interest, especially at a time when the price difference between combustion and electric vehicles is still an obstacle for many consumers. So why is this executive so confident?
In his interview, François highlighted two key points that governments need to address to encourage the transition to electric vehicles. Firstly, he mentioned the need to narrow the price gap between electric and combustion-powered cars. Although subsidies have been introduced in some countries, the Fiat CEO is not calling for long-term support. According to him, the price of electric cars will drop significantly thanks to improved technologies and internal efforts by the brand.
Indeed, falling costs for electric vehicles and batteries seem to be a certainty, but they are linked above all to innovation and mastery of production processes. "Battery costs are going to fall considerably very soon," says Olivier François. However, for this process to happen quickly and efficiently, governments must also support the development of adequate infrastructures.
One of the key elements that make François' optimistic vision plausible is in the joint venture between Stellantis and CATL, a partnership announced at the end of 2024. The project involves the construction of a LFP (Lithium Iron Phosphate) battery factory in Spain, with a colossal investment of 4.1 billion euros. These batteries, which should start production in 2026, will be a major asset for Fiat and its sister brands.
Why is this investment so strategic? Today, Fiat and other automakers buy their batteries from giants like BYD, CATL, LG or Samsung, which means that costs vary according to the volumes purchased. By producing its own batteries, Stellantis will be able to better control production costs, and, consequently, offer more competitive electric vehicles.
The first beneficiary of this new battery production will be the electric Fiat 500one of the brand's flagship models. By controlling its battery supply chain, Fiat hopes to lower manufacturing costs, and thus selling prices. However, it is not yet clear to what extent the reduction in production costs will affect the final price of the vehicles.
So it's likely that in the near future, the Grande Panda, 500, 600 and other electric cars to come will become more affordable for a large part of the population.
It's amazing to see all the freedom to think and act since the departure of Carlos Tavares. Good initiatives are springing up in different markets, which is reassuring for the future. There's still the question of design to rectify, particularly at Lancia, Alfa and Maserati.
Lowering prices is essential. But greatly improving reliability is even more so. Just look at all the problems with bugs and breakdowns on all makes, not to mention the problems with real battery range and real charging times, noted this winter... on well-known models... tesla, Renault 5e, 3008 e, Citroën C3e .... All my friends who own these electric cars have had unpleasant surprises... Helas