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Stellantis CEO believes synthetic fuel exemption will be “chaos” that will make it difficult to electrify Europe

Carlos Tavares, CEO of the Stellantis groupbelieves that the exemption to synthetic fuels that Germany has forced on the European Union to allow models that use this type of fuel are not affected by the ban on selling new thermal cars from 2035 will have chaotic results.

The executive points out that synthetic fuels will be a good solution to decarbonize the 1.4 billion non-electric cars which will be in circulation by the middle of the next decade. For this reason, Stellantis is evaluating the use of e-fuels in 28 families of Euro 6 engines to assess their feasibility.

However, Tavares believes that the exemption for new vehicles undermines previously established regulations and investments made for the implementation of battery electric cars, adding even more confusion and instability to the transition process. «The first scenario is that [los e-fuels] don’t break any paradigm [es decir, que no puedan demostrar su neutralidad de carbono o que no resulten competitivos a nivel de costes]. Then we will be safe and we will continue to push electric vehicles.

The second scenario is that they do break them. Then what do we do? What if someone comes up with a breakthrough and finds a way to dramatically reduce the manufacturing costs of synthetic fuels? PTo execute the current strategy it takes 20 years. What is the probability that within a 20-year time window no one will come along with a breakthrough saying ‘I found something that has a much lower cost to society, a much better outcome for the planet and is much easier. to execute?’”

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Tavares believes that the new regulation undermines the industry’s efforts to become electrified

Tavares affirms that Stellantis will have no problem electrifying at full speed and show the world that it is “the best manufacturer of electric vehicles”. As for synthetic fuels, the group will leave it up to interested parties to demonstrate whether it is a truly carbon-neutral solution and whether the costs can be as low as electric fuels.

“It’s funny, because what do the politicians say? They immediately went on to say that [los e-fuels] they are a rich fuel. That’s a very attractive communication because if you say they’re only for the rich, everyone will say, ‘Oh, okay, we don’t care, they’re only for the rich.’ What if there is a breakthrough? What will we do with the gigafactories?

What do we do with all the transformation [hacia la electrificación] What have we been doing as an industry, who is going to pay for that? I’m worried about society I’m worried about Europe, I’m worried about the western world«.

Source | Coach

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