Stellantis plans the intended energy production

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Stellantis is considering “significant” investments to produce energy for its European factories as part of its response to the threat of Russian natural gas cuts, the carmaker’s chief executive said on Wednesday.

“We are now preparing a very strong plan to reduce energy consumption,” said Stellantis CEO Carlos Tavares during a video conference on the sidelines of the Detroit Auto Show.

“We will make significant investments to produce our own energy on site. This will be decided in the next few days,” Tavares said.

He indicated that the Stellantis factories have space for additional solar energy networks, but did not provide more details.

The company is working on measures to reduce energy consumption, Tavares said, modeled in part on steps the executive saw taken by Japanese companies after a tsunami knocked out power supplies in 2011.

So far, Tavares said, the company’s operations in Europe have not been affected by interruptions in the supply of Russian gas, “beyond the costs”.

“It’s an added element of chaos,” Tavares said, on top of the supply chain and pandemic-related disruptions the automaker has faced for more than two years.

Tavares said he has no plans to split Stellantis into electric and combustion technology divisions, as French rival Renault has proposed.

Ford Motor has created parallel divisions for electric and internal combustion vehicles.

“We don’t see the company as an old business on the one hand and a new business on the other,” said Tavares.