MILAN (Reuters) – Stellantis will avoid being caught in a price war which would destroy its profitability, its CEO said on Friday, adding that he did not see major impacts on supplies due to ongoing disruption in the Red Sea.
Stellantis CEO Carlos Tavares said during a presentation of Stellantis’ new platform for large battery electric vehicles (BEV), that his company, which is among the most profitable in the industry, was protected against a downtrend in prices, which could put several competitors “in trouble” and at risk of becoming takeover targets.
“If you go and cut pricing disregarding the reality of your costs, you will have a bloodbath. I am trying to avoid a race to the bottom,” he said.
“I know a company that has brutally cut pricing and their profitability has brutally collapsed,” he said, without elaborating.
Earlier this week, rival BEV maker Tesla slashed prices of its Model Y car across Europe including in Germany, a week after the company cut prices in China in the face of uncertain electric-vehicle demand.
(Reporting by Giulio Piovaccari in Milan, Gilles Guillaume in Paris, Joe White in Detroit; writing by Giulio Piovaccari, editing by Gianluca Semeraro, Elaine Hardcastle)
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