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EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.

Ram 1500 TRX too tame for you? Hennessey cranks its Hemi V8 to 1,012 horsepower

Ram captured the top spot on the horsepower podium when it released the Hellcat-powered 1500 TRX in 2020. The truck's 702-horsepower output places it comfortably ahead of the Ford F-150 Raptor, at least for now, but American tuner Hennessey saw plenty of room for improvement. It added over 300 horses to the TRX's cavalry. Hennessey is a master in V8-ology, so it was only a matter of time before it injected more power into the TRX. It announced two models named Mammoth 900 and Mammoth 1000, respectively, and each number vaguely corresponds to the V8's new output. The 900's 6.2-liter produces 912 horsepower and 873 pound-feet of torque, increases of 210 and 223, respectively, compared to the standard TRX. Hennessey achieved these figures by upgrading the supercharger pulleys and making relatively basic changes to the intake and exhaust systems. Stepping up to the 1000 unlocks 1,012 horsepower and 969 pound-feet of torque, numbers that give the 6,300-plus-pound truck the uncanny ability to reach 60 mph from a stop in 3.2 seconds. It flies through the quarter mile in 11.4 seconds at 120 mph. Building a pickup with supercar-like acceleration required installing a bigger, 2.65-liter supercharger, adding high-flow fuel injectors, and recalibrating the ECU. Intake and exhaust modifications are on the menu, too. Surprisingly, it doesn't sound like Hennessey made significant internal changes to the engine or to the transmission, which suggests the standard components can handle a massive amount of power. Context is useful here. Released in 2013, the fifth and final generation of the Dodge-turned-SRT-turned-Dodge again Viper took 3.3 seconds to sprint from zero to 60 mph, and it logged an 11.5-second quarter-mile time. Previewed in a computer-generated sketch, the Mammoth 1000 (shown above) also receives 20-inch wheels wrapped by 35-inch off-road tires, a 2.5-inch suspension lift, custom bumpers on both ends, extra LEDs up front, electronic fold-out steps, plus an array of model-specific emblems. Inside, Hennessey added a numbered plaque. 200 units of the Mammoth 1000 will be available for the 2021 model year, and pricing starts at $135,350 including the cost of the donor truck (which carries a base price of $71,790) and a warranty valid for two years or 24,000 miles. Put another way, you get 30.6% more power than stock for about 40% more money.

451 Ram trucks take world record for longest parade of pickups

If you've been wondering what the world record was for the longest parade of pickup trucks, wonder no more, because Ram has just set a new one. A staggering parade of 451 Ram trucks gathered on Saturday in Arlington, TX, breaking the previous record that stood at 438, and driving a route of 3.2 miles. The endeavor was held to coincide with the 50th Academy of Country Music Awards, held at AT&T Stadium – home of the Dallas Cowboys – in Arlington this weekend. Ram truck owners came from across seven states and as far away as Canada to participate in the event, which was certified by Guinness World Records. As part of the celebration, participants were treated to a car-crushing demonstration by the Raminator monster truck and appearances by country musicians Kix Brooks, Thomas Rhett and Easton Corbin, with a special performance by Midnight Social out of Austin. Ram Trucks Makes History April 18 Setting New GUINNESS WORLD RECORDS™ Title for Largest Parade of Pickup Trucks - 451Ram truck owners from seven U.S. states and Canada help set new world record, Saturday, April 18, 2015 - Ram Truck 'Round-up' held in conjunction with 50th Academy of Country Music Awards weekend in Arlington, Texas, April 17-19 - ACM Awards to be broadcast for the first time ever LIVE from AT&T Stadium in Arlington this Sunday, April 19 on CBS April 18, 2015 , Arlington, TX - Ram truck owners from seven U.S states and Canada helped the Ram Truck brand set a new GUINNESS WORLD RECORDS™ title for the largest parade of pickup trucks, Saturday, April 18, in Arlington, Texas. 451 Ram trucks participated in the "Ram Truck Round-up," breaking the previous world record of 438 trucks. Ram, the "Official Truck" of the Academy of Country Music Awards, invited its customers to help break the GUINNESS WORLD RECORDS in honor the 50th anniversary of the ACM Awards, which will be broadcast live for the first time ever from AT&T Stadium in Arlington, Texas, Sunday, April 19, at 8 p.m. live Eastern time/8 p.m. delayed Pacific time on CBS Television Network. "Our hard-working Ram truck owners are passionate and loyal, and today they proved once again that everything is always bigger in Texas," said Robert Hegbloom, President and Chief Executive Officer, Ram Truck Brand, FCA – North America.