Carlos Tavares, CEO of Jeep maker Stellantis NV, on Tuesday warned that a recession could be disastrous for the automotive industry as economic policymakers increase interest rates to curb inflation.
"If you cool down the economy too much, you can trigger a recession, and that's what people are afraid of," Tavares said from Germany during a virtual roundtable. "And I think they are right. I think they should be afraid of that."
He urged caution in the decision-making of central banks. It's especially a critical time for the auto industry as it makes a historic transition toward electric vehicles. Tavares, an outspoken critic over how regulators are pushing the zero-emission revolution, warned increased costs of servicing debt because of higher interest rates could lead to spending cuts from governments and result in less incentive support for buyers of EVs.
