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Stellantis working hard to avoid Volkswagen plant closure scenario, CEO says
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Stellantis working hard to avoid Volkswagen plant closure scenario, CEO says
Sep 17, 2024 5:58 AM

TURIN, Sept 17 (Reuters) - Stellantis ( STLA ) has

already taken measures and is working hard to avoid the risk of

plant closures facing rival Volkswagen, the

carmaker's CEO Carlos Tavares said on Tuesday.

"We have done many unpopular things over the last few years

to avoid as much as possible" a situation similar to

Volkswagen, Tavares said.

"We have been criticised for that, for taking decisions

which were ... not always well understood," Tavares said, adding

the key was to sell electric vehicles at the same prices as

traditional petrol models.

Earlier this month Europe's largest automaker Volkswagen

announced it was considering for the first time in

its history to close factories in home country Germany.

Volkswagen's announcement has triggered speculation that

more European automakers could assess similar moves to respond

to low factory utilisation rates in the region, increasing price

pressures from Asian rivals and a tougher economic environment.

"We are working very very hard to avoid that situation and

the future will say if we are going to be able to avoid any

trouble or not, too soon to say today," Tavares told reporters

after inaugurating a global hub for the group's commercial

vehicle unit Pro One, in Turin, Italy.

Between 2021 - when it was formed through the merger of Fiat

Chrysler and Peugeot maker PSA - and 2023, Stellantis ( STLA ) cut its

workforce by almost 20,000 in Europe, mostly through voluntary

redundancy.

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