MACHINERY NEWS & UPDATES

Recent comments from Stellantis boss Tavares.  Unlike GM and Ford, Stellantis is able to speak the truth in the U.S.

This cost-cutting race will be a “big, big, big burden” on parts suppliers, Tavares said, considering the vast majority of any new vehicle’s production costs come from its parts.

He suggested automakers including Stellantis will begin relying even more heavily on parts supplied from countries such as India, Turkey, Morocco and Mexico — countries where it’s possible to have “a 30% to 40% variation on the cost of the same part, the same system, with the same specs” compared with parts made in the United States or Europe.

“This is the reason why, to absorb the 40% of EV additional cost, you are going to see a huge shift of the supply base,” the CEO said. “The sourcing will move from the Western world to the best-cost countries.”