Among the cuts are reducing the number of the automaker's factories because electric vehicles cost about 40% more than those powered by gasoline.
Without cost reductions, EVs will be too expensive for the middle class, shrinking the market and driving costs up more, Tavares told reporters Thursday at the CES gadget show in
“If the size of the market shrinks, you are back to square one because you are reducing the efficiency and effectiveness of your manufacturing operation,” he said. “You go from hero to zero in three years if you stop working on costs.”
Tavares said he's not certain about costs going up or whether
“We'll see how things move in the next few months,” he said, adding that a significant economic slowdown won't help the
He said worries about electric vehicle affordability extend to
“Are we sure that we will not need the (factory) capacity? No, we are not sure,” he said. “If you keep for a signification amount of time capacity that you don't use, you put yourself in trouble. That's what experience shows. So you need to continually adjust your capacity to your needs."
Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source