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January 06, 2023 06:32 AM

Tavares lays out bold tech vision for Stellantis

At CES, Stellantis' CEO also warns of looming battles with China and says more assembly plants could be idled as the company battles inflation and the cost of electrification

Vince Bond Jr.
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    Stellantis Tavares CES 2023 Rtrs.jpg
    REUTERS

    Stellantis CEO Tavares at the CES 2023: “If the market shrinks, we don’t need so many plants. Some unpopular decisions will have to be made.”

    LAS VEGAS — Stellantis on Thursday delivered an expansive vision of its future at CES that includes its push into the electric pickup market, innovative uses of autonomous technology for off-roading Jeeps and establishment of an independent unit that'll grow its "data as a service" business.

    Stellantis CEO Carlos Tavares also mentioned how the automaker is looking to the skies through its partnership with Archer Aviation to build electric aircraft, a mode of travel that he sees as having potential to offer freedom of mobility for people in urban settings.

    Tavares said during his keynote address that Stellantis is becoming a "mobility tech company" and that it wants to improve how people move, socialize and entertain themselves. He said the company is massive in scale, but has the soul of a startup.

    Tavares' lofty address sought to explain the automaker's place in the world.

    "The need to innovate for our future is greater than ever. Companies must be both transformative, while profitable; be tech minded, but driven to serve human needs," he said. "Humans are, first and foremost, seeking a sense of safety in this uncertain chaotic world that is marred by crisis after crisis."

    MORE PLANTS COULD BE IDLED

    Meanwhile, Tavares said Stellantis may idle additional assembly plants as it grapples with higher inflation on top of the cost of electrifying its lineup.

    “If we don’t optimize our cost structure, we cannot absorb the additional cost of electrification,” which risks leading to elevated car prices and a shrinking market, Tavares told reporters at CES. “If the market shrinks, we don’t need so many plants. Some unpopular decisions will have to be made.”

    The automaker said last month it would idle a Jeep-making factory in Belvidere, Illi., effective Feb. 28, which will result in layoffs of an unspecified number of workers. Still, should car demand rebound, Stellantis might “adapt” its decision on that plant, Tavares said.

    EUROPE VS. CHINA

    On another topic, Tavares said he sees the European auto industry at a crossroads in competition with its Chinese rivals.

    If politicians in Europe do not find an answer to the push into Europe by Chinese automakers, there will be a "terrible fight," Tavares told sibling publication Automobilwoche on the CES sidelines.

    Europe's auto industry could be forced to massively reduce its production capacity in the face of rising competition from China, Tavares said.

    Chinese automakers are expanding in Europe with competitive and aggressively priced vehicles, Tavares added.

    "The price difference between European and Chinese vehicles is significant. If nothing is changed in the current situation, European customers from the middle class will increasingly turn to Chinese models. The purchasing power of many people in Europe is decreasing noticeably."

    Tavares comments echo those of Forvia CEO Patrick Koller, who said in Las Vegas that European automakers must develop affordable small battery-electric vehicles for urban use.

    Europe's emissions regulatory regime is not helping the region's automakers, Tavares said.

    Big star of the day

    Stellantis' biggest star of the day was the Ram 1500 Revolution BEV Concept pickup that rolled onto the stage sporting an aesthetic that designers consider both brutish and beautiful.

    Ram CEO Mike Koval, who introduced the pickup Thursday, said the concept's design sets the tone for the next generation of Ram products.

    The concept is flush with technology, including a personal artificial intelligence-powered assistant, a "shadow mode" where the truck will follow the driver using sensors and cameras, smart home control and an intelligent storage app that Ram says is a mobile application that helps users measure objects to determine whether they can be transported with their vehicle.

    The tech innovation wasn't limited to Ram. Tavares highlighted how autonomous capability can enhance off-road adventures for Jeep.

    For instance, Tavares said the vision is for an autonomous Jeep to pick up its owner further down the trail.

    Ram wasn't the only concept to hit the stage. Peugeot CEO Linda Jackson debuted the futuristic-looking Inception EV that bears a design she called "feline future." Jackson said Inception has a "magnetic poise and posture of a big cat ready to spring."

    TERRY KOSDROSKY

    Stellantis CEO Carlos Tavares and Ram CEO Mike Koval with the 1500 Revolution BEV Concept.

    LEVERAGING DATA

    Tavares also announced how Stellantis' new Mobilisights business will leverage data from its connected vehicles, which the company expects to reach 34 million by 2030.

    The automaker said Mobilisights will collaborate with data partners and license data to a wide range of customers, including other automakers.

    "We are enabling at third-party ecosystem of application and service providers to create experiences that compliment our products," Tavares said. "It's one of the five pillars of our software growth strategy."

    Tavares on Thursday said that electric aircraft "will ease urban transportation congestion." Archer is targeting price points for short flights that are similar to ride-share trips in cars.

    Electric aircraft

    Stellantis is working with Archer to build the Midnight aircraft, optimized for trips of about 30 kilometres and has a range of up to 160 kilometres. The charging time between trips is about 10 minutes.

    Tavares on Thursday said that electric aircraft "will ease urban transportation congestion." Archer is targeting price points for short flights that are similar to ride-share trips in cars.

    The Midnight is scheduled to go into projection next year in Covington, Ga.

    "Everything Stellantis does this day forward sets the table for how we'll get our carbon neutrality commitment in just 15 years," Tavares said. "Leading the way the world moves with clean, safe and affordable options is the only path to a sustainable future."

    Michael Knauer of Automobilwoche and Bloomberg contributed to this report.

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