Automotive School Students Want to Know: How Stellantis Aims to Cut Costs and Reduce EV Prices
The EV manufacturing industry is facing several challenges, according to Stellantis CEO Carlos Tavares. He believes the EV price increases seen in the past two years could significantly impact the EV market and completely cut out the middle-class consumer if EV manufacturers are not careful. This will harshly impact the EV industry as production will decrease, causing a negative chain effect. Thankfully, steps are being taken to help reduce the costs of EVs and make them more accessible despite the challenges.
If you want to learn more about how Stellantis cutting costs and reducing EV prices impacts you in automotive school, continue reading.
Reduce the Number of Existing Factories
Attempting to help cut costs globally and make EVs more affordable for the middle class, Tavares believes that reducing the number of factories making automobiles around the world will be beneficial. He believes this will be impactful as EVs cost approximately 40% more to manufacture than their petrol-powered counterparts. By reducing the cost of production, EVs will be more affordable. For example, Stellantis is looking to idle their factory in Belvidere, Illinois.
Other Cost-Cutting Options
The reason that Stellantis is idling their factory in Illinois is due to EV prices increasing and cost cuts needing to occur. Tavares believes that for the factory to be reopened, the auto market needs to stop shrinking, and there needs to be no recession in the near future. The situation does not bode well for the EV industry; however, with the reduction in prices that are expected to occur in 2023, this could be the positive influence the industry needs. A shortage in computer chips and raw materials was the primary reason for the increase in EV prices. However, the chip and raw material shortage should ease in 2023.
This push to reduce EV pricing and attract more of the middle class will benefit somebody in hybrid and electrical mechanic training. More EVs on the road means more EVs requiring servicing and maintenance. Your training will equip you with everything you need to know about servicing these vehicles so that you can take advantage of increased EV sales. With many governments, including Canada’s, pushing to increase the adoption of EVs, there is a high chance that EVs will continue increasing in sales despite the industry’s challenges.
2023 Looks Positive for EV Price Reduction
2022 was a year when EV prices were high, and there were long waiting lists for purchasing one. It is believed that 2023 is set to be different. EV prices are expected to fall, with several manufacturers announcing price drops for 2023 across their EV ranges. For example, Ford has dropped the price of several EVs in their range and is looking to implement cost-saving measures similar to Stellantis. Stellantis, like Ford, is also set to reduce its EV prices in 2023 to compete in the market.
After automotive training, you will know how to service and repair these vehicles, having the skills to service regenerative braking systems, electric motors, battery packs, and other EV parts. With price reductions, EV sales are likely to spike, and you will be prepared to take advantage of this and offer your high-quality and well-trained services to the market.
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