Stellantis CEO discusses where company is headed, how it’ll cope with the changes in the industry

Chip shortage causes issues for automotive industry

The Stellantis merger is now complete and we’re getting a better idea of where the company is headed these days.

AUBURN HILLS, Mich. – The Stellantis merger is now complete and we’re getting a better idea of where the company is headed these days.

The Automotive Press Association brought new Stellantis CEO Carlos Tavares who spent an hour speaking about where the company is headed and how the company is going to attack the everchanging automotive environment.

Tavares side the semiconductor chip shortage has filled lots with unfinished vehicles and staunched supplies and sales. It’s an expensive problem that’s going to continue causing problems into the foreseeable future.

The company is going to spend about $35 billion over the next five years toward electric vehicles. Jeep will lead the way on the program and existing transmission and engine plants will convert to making batteries. He said the company is way ahead of schedule with cost savings as a result of the merger.

At the Auburn Hills Engineering Facility there’s deep concern there are cuts coming. Tavares admitted electrification will increase cost 40% and he wants to be able to keep vehicles affordable for the middle class.

Read: Computer chip shortage is why it’s hard to get PS5, new Xbox and why car prices are rising

Watch the video above for the full report.

Stellantis: 98% of models to be electric or hybrid by 2025

Stellantis is a little late to the global electric vehicle party, but on Thursday it pledged to catch up and pass its competitors.

CEO Carlos Tavares says that by 2025, 98% of its models in Europe and North America will have fully electric or plug-in gas-electric hybrid versions. He says the company that combined Fiat Chrysler and Peugeot is developing four fully electric vehicle platforms with ranges from 500 kilometers (311 miles) to 800 kilometers (497 miles).

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About the Authors:

Rod Meloni is an Emmy Award-winning Business Editor on Local 4 News and a Certified Financial Planner™ Professional.

Kayla is a Web Producer for ClickOnDetroit. Before she joined the team in 2018 she worked at WILX in Lansing as a digital producer.