PARIS -- Stellantis has no plans to move production of the electric Peugeot e-208 to France from Spain despite a push from the French government for more locally made cars, CEO Carlos Tavares said in an interview published on Wednesday.
"The economic equation link to the imposed relocation of this project would not be in the interest of the company nor the country," Tavares told French daily newspaper Le Figaro.
Electric vehicles are more expensive than their fossil-fuel counterparts and European automakers are seeking to build cheaper models, encouraged by government subsidies.
France, for example, plans a subsidy for EVs produced in Europe as they would have a lower carbon footprint than imported models and a social leasing program offering EVs for about 100 euros ($108) per month to poorer households.
French Finance Minister Bruno Le Maire said small EVs should be built in France in addition to higher-end models.
"I know Carlos Tavares enjoys challenges ... I ask him to take up the challenge to build small electric vehicles, like the 208, in France. Maybe not the whole car but why not parts of it," he told BFM TV.
Tavares and Le Maire have tussled over the issue in recent months.
Renault plans to build its next small EVs, the Renault 5 hatchback and Renault 4 SUV, in France.
The e-208 is built in Zaragoza, Spain, while internal-combustion versions are built in Kenitra, Morocco, and Trnava, Slovakia.
Last month, Stellantis, the world's No. 3 automaker based on sales, said it would unveil its first European-made affordable electric car in mid-October, the Citroen New e-C3, as it gears up to counter the arrival of low-cost Chinese brands in the region. A similar electric model is currently built in India for the domestic market.
The need for more affordable European models has been driven by Chinese EV brands, which are seen as a threat to European automakers as they offer cheaper models.
"The results will tell us who made the right call amidst the Chinese competition," Tavares told Le Figaro, adding that the Chinese automakers' costs were 20 to 25 percent lower than those of the European companies.
