Stellantis CEO fears new cars are getting too expensive
Buying a new car in today’s market is tough, to say the least. Thanks to a host of factors, buying a new and used car is more expensive than ever. This caused many consumers to put their buying decision on hold, while others were forced to settle for a lower model than their original plan allowed. This new price trend is of great concern to Stellantis CEO Carlos Tavares.
The average transaction price for a new car recently topped $47,000 and according to the KBB, Americans spend an average of $47,077 to buy a new car. In 2021, the cost of an average new car increased by $6,220 compared to 2020 pricing data. This trend of rising costs appears to be only getting worse and recent world events are not improving the situation.
Why are new car prices rising? Well, it all comes down to supply and demand. Currently, the supply of new cars is declining while demand remains. Couple that with record inflation, a global chip shortage, supply chain issues, the COVID-19 pandemic, and a new global military conflict, and you have the perfect storm.
Stellantis CEO Carlos Tavares went on to explain the situation at the Detroit office, “I’m very concerned about the effect of affordability becoming much more problematic as inflationary pressures build.” Tavares understands that middle-class customers need to buy cars and this price increase is putting enormous pressure on their financial situation.
To address this, Stellantis is striving to build affordable BEVs in line with its new 2030 strategy where they will unveil 25 new BEVs by 2030. The next 8 years will be a critical stage of transformation for Stellantis and we look forward to the possibility of more affordable. electric vehicles.