Stellantis says electrification is killing the affordable car

Stellantis-owned Citroën is worried that electrification is making it difficult for motorists to buy an affordable car by driving prices up. One of the company's top executives said this trend is "a real threat," and his comments were echoed by the group's chief manufacturing officer.

"It's really a threat that the electrification has increased the price of the car so much that people can't afford cars anymore. It's a real threat, not only regarding Citroën, so we're increasingly conscious of that and are working on this," explained Arnaud Ribault, the head of Citroën's European division, in an interview with British magazine Autocar.

Going hybrid (and especially electric) threatens to drive some buyers out of the new car market for several reasons. One is that the cost of the raw materials needed to build a hybrid or an electric car tends to be higher than the cost of the raw materials required to make a comparable gasoline- or diesel-powered model. For context, the Citroën C4 (a crossover with a fastback-like roof line; pictured) starts at 22,900 euros with a gasoline-burning three-cylinder engine and 35,300 euros with an electric powertrain, figures that represent about $23,900 and $36,800, respectively. That's a huge difference, even when the EV's longer list of standard features gets factored in.

On our side of the pond, the 2022 Hyundai Kona carries a base price of $21,300 with a 2.0-liter four-cylinder engine between its fenders and $34,000 with a battery under its passenger compartment. Government incentives help narrow the gap, and the electric variant is better equipped than its gasoline-sipping counterpart, but these points don't matter to someone with a budget of $25,000, for example.