The bosses of Europe's two biggest carmakers called Europe's transition to electric vehicles an acceleration. Tensions continue in the EU in the race to ban the traditional combustion engine.
Carlos Tavares, chief executive of Constellation, which owns the Peugeot, Vauxhall, Jeep and Citroën brands, and Martin Sanger, sales chief of Volkswagen passenger cars, used the Paris Motor Show to warn opponents of the switch to green driving, including political parties on the right.
Tavares said delaying the transition is a “trap” that can cost carmakers more down the production line. “It's a big trap to change over the long term,” he told the Financial Times. “When you make a long transition, you're not really changing the old world into a new one. You combine the new world with the old.
The next five to 10 years are considered make-or-break for some of Europe's biggest carmakers, with the EU already trying to minimize the damage from competition with China. The levy totals up to 45% on EV imports.
Many manufacturers have already abandoned their original plans to phase out the traditional internal combustion engine.
Sander, head of sales and marketing for Volkswagen's passenger car business, urged governments to move faster, not slower, toward the end of combustion engines.
“I believe we are going to see clear commitments and signals from politicians that the future is electric. And then I'm sure we're also seeing an increase in customer demand,” he told the FT at the Paris Motor Show, the biggest industry event on the calendar.
Tavares, under pressure after a profit warning in September amid weak demand in the US, embarked on a media blitz on Monday, speaking at five events.
Tavares, interviewed on French radio station RTL, refused to rule out job cuts and said it may require plant closures or off-loading brands to remain profitable in the face of Chinese competition. Earlier this year, the carmaker warned the plants in the UK were at risk.
“We have to make big efforts,” Tavares said, adding that the group's customers will have to decide which brands have a future and which can be discarded.
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Stella Li, executive vice president of Chinese conglomerate BYD, criticized the introduction of tariffs proposed by the EU in November as European and Chinese carmakers went head-to-head at the motor show.
“The problem is very high prices and the EU is charging tariffs now,” he told Reuters news agency.
“Who pays the bill? Consumers. So it worries people a lot. It will deter poor people from buying,” he warned, adding that the tariffs proposed for BYD vehicles were “not a fair judgement”.
Nine Chinese brands, including BYD and Leapmotor, will unveil their latest models at this year's event, according to Paris Auto Show chief executive Serge Cachot. It created almost half the same number of brands as in 2022.
