Vauxhall owner warns about EV affordability

There’s a warning that people are “turning their backs” on electric cars because the energy crisis means they are more expensive to run.

The Telegraph reports the the CEO of Vauxhall owner Stellantis says that the middle classes cannot afford the cost of electric cars without the support of state subsidies.

It quotes Carlos Tavares as saying: “The most significant problem of electrification is the affordability for the middle classes.

“That’s what we are now fighting against – how fast can we reduce the costs to bring the EV to the level of affordability that people can pay for without subsidies.”

The Telegraph points to the much higher prices for middle-of-the-range vehicles, with a Volkswagen Golf costing from around £25,000, while a similarly-sized all-electric VW ID.3 starts at about £36,400. It says prices for Nissan’s battery-powered Leaf start at £29,000, while its combustion engine model Juke starts at £20,700. It also points to falling fuel prices just as electricity gets more expensive. In some cases traditionally-powered cars are cheaper to run.

The Telegraph says that Mr Tavares pointed to the US and Germany as examples where large subsidies have driven sales of electric cars, although he also said developments in new battery designs will help cut weight and costs and bring down prices.

(Picture – Yay Images)


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