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 with a French newspaper.

“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 Le Figaro, according to Reuters.

France 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 around EUR100 (US$108) per month to poorer households.

French finance minister Bruno Le Maire reportedly said small electric vehicles should be built in France on top of 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, according to Reuters.

“The results will tell us who made the right call amidst the Chinese competition,” Tavares reportedly told Le Figaro, adding the Chinese carmakers’ costs arriving in Europe were 20-25% lower than those of the European companies.

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