U.S., German and French carmakers are producing EVs at levels currently 40 per cent to 45 per cent below initial expectations
U.S., German and French carmakers are producing EVs at levels currently 40 per cent to 45 per cent below initial expectations, “which means the capacity that had been put in place by our clients and by ourselves requires continuous adjustment,” OPmobility chief executive Laurent Favre said. “We are adapting the way we work with our clients.”
The ripple effect from the slowing shift is spreading, with Stellantis NV halting EV output at its Mirafiori plant near Turin. Volkswagen AG this month started proceedings that may see it shut a factory in Belgium making the electric Audi Q8 e-tron. Another French auto supplier, Valeo SA, is seeking buyers for two plants.
“There also is renewed interest for hybrids and plug-in hybrids,” Favre said. “Some of our clients, notably in the U.S., had planned to shift directly from classic combustion engine vehicles to EVs and now they are focusing on plug-in hybrid development.”
OPmobility confirmed its full-year targets on Tuesday even though Favre said he remains “cautious” on the outlook for the rest of the year. The shares surged as much as 12 per cent, the steepest gain since March 2022 after reporting strong new orders, valuing the company at €1.5 billion (US$1.63 billion).
“There is still a lot of uncertainty on volumes and the market’s development,” he said. “The shift to electric was imposed by regulators, it didn’t come because of demand deriving from consumers.”