Stellantis CEO Tavares: Climate Change Policies Shouldn’t Be Used as a Trade Weapon

In an event called the Freedom of Mobility Forum, Stellantis CEO Carlos Tavares said that climate change policies should not influence global investment decisions and should not be used to pit countries against each other. He added that policies on climate change should not be a weapon of competitiveness in global trade. Last year, Congress announced $369 billion in subsidies to support clean technologies and electric vehicles under the Inflation Reduction Act, and China has been giving local automakers incentives for domestic production of battery electric vehicles. The European Union responded with its proposed Green Deal Industrial Plan, concerned that the US law could put companies based in Europe at a disadvantage and drive investments out of the region.

Tavares also reiterated that the final decision by the EU to allow sales of new combustion engines cars that run only on e-fuels to continue after 2035 will not change Stellantis’ electrification plans. The plans were made in 2014-2015, well before the European parliament started regulating, he said. He added that the company was still on time to deliver electrified, clean mobility. E-fuels, he said, will be another technology direction and that the industry needs to demonstrate that they are carbon neutral.

The Freedom of Mobility Forum, which held its first annual session, was set up by Stellantis last year after it left the European auto lobby group ACEA. It is designed to promote discussions with a wide range of stakeholders covering the problems and trends of mobility and their implications for global warming. The industry is now diverse, and many technologies are being developed that can help reduce carbon emissions in transport. E-mobility is one of them, and governments worldwide are encouraging electrified transport.

However, some sectors of the transport industry believe that electrification is not the only answer, and alternative technologies could play a significant role in mitigating carbon emissions. E-fuels are one of those technologies, and the industry is optimistic that with appropriate regulation, these fuels could play a role in transportation. The EU’s decision to allow combustion engine cars that run on e-fuels to continue post-2035 is a sign that alternative technologies like e-fuels are gaining recognition.

Carbon-neutral e-fuels could be produced from renewable sources of energy like wind or solar, allowing the industry to continue using internal combustion engine cars while reducing carbon emissions. These fuels can also help improve the performance of older vehicles with higher emissions. The production of e-fuels does not require vast infrastructure changes or expensive retooling, making it an attractive possibility to traditional automakers.

In conclusion, Stellantis CEO Carlos Tavares believes that climate change policies should not be used to influence global investment decisions or put countries in competition with each other. The EU’s recent decision to allow the sale of new combustion engine cars that only run on e-fuels to continue post-2035 will not change Stellantis’ electrification plans. E-fuels are another technology direction that the industry is developing, and companies need to demonstrate that they are carbon-neutral. The industry is diverse, and alternative technologies could play a role in mitigating carbon emissions in transportation.