Cut EV Development Costs, Stellantis Cut Off Relations With Suppliers?

Leapmotor T03. (Doc. Stellantis)

JAKARTA - Stellantis is reportedly willing to separate from a number of suppliers and will create its own vehicle components. It aims to cut costs in preparing for an electrification shift.

"When the suppliers can't compete at the same speed as us, the company will take advantage of the existing sources," said Stellantis CEO Carlos Tavares, quoted by Automotive News, Thursday, June 6.

The multinational company is also putting pressure on suppliers to make more cost cuts amid slowing demand for electric vehicles in Europe, where high lending costs, weak economic growth, and reduced subsidies have weighed down on sales.

The company's suppliers include Valeo, who last year did impressive work for being able to reduce costs. Stellantis also procured companies such as Continental, Magna International, Forvia and Aptiv, and others.

In addition, Stellantis and his partners also adjust the investment rate of electric vehicle batteries to suit vehicle demand.

This move comes amid the onslaught of affordable electric vehicles from China that are heating up. BYD will offer Seagull to the European market next year at prices below 20,000 euros (around Rp354 million).

Earlier, Stellantis, along with Automotive Cell Company, said they had stopped construction of a 2 billion euro plant in Germany to review plans and possibly switch to lower-cost cell manufacturing at the site.

On the other hand, productivity and quality at the Melfi factory, Italy has experienced an increase. This assembly site is a facility that builds Jeep and Fiat branded models.

Stellantis' efforts to reduce the selling price of electric cars can be seen from their plan to market Jeeps below 25,000 US dollars (Rp405 million) in the United States. Previously, they had also launched Citroen e-C3 for 23,300 euros (Rp413 million) in Europe.

In addition, Stellantis has teamed up with Leapmotor, China's electric car company, to sell Leapmotor T03 for under 20,000 euros in Europe.

Stellantis also plans to continue producing cars with a multi-energy' platform. This is a platform that can be used for electric cars and gasoline cars, including hybrids. With this platform, Stellantis hopes to offer a wider and more flexible variety of products.