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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.

Chrysler shows creative side with employee art exhibit

The United Auto Workers and Chrysler recently sponsored 92 works of art created by 50 of the automaker's unionized and salaried employees for the 2013-14 Artists at Work Exhibition, the ninth such show, which recognizes the creative process required to make art and manufacture vehicles. Chrysler says the event is "the country's only juried art show sponsored by a major corporation and a labor union." Unfortunately, the exhibit is not open to the public, but we have images to share of the winning pieces as well as other interesting exhibits in the gallery above.
"Art and manufacturing have more in common than you might think," says Keith Mickens, Chrysler-UAW National Training Center co-director from the UAW. "The creative process involved in producing a memorable image on a canvas can be used to help build quality vehicles on an assembly line."
A diverse range of art forms are showcased, from metal sculptures to ceramics to photography to paintings and more. Four Detroit-area professional artists narrowed down over 600 submissions to the 92 works of art that were shown at the exhibit, then awarded "Best of Show" prizes to three employees for their work (the first three images in our gallery) and selected 11 employees for honorable mentions. The overall winner is the sculpture above by Joseph Aiuto, titled "Childhood Anxiety."

2018 Chrysler Pacifica Hybrid Long-Term Update | Serenity now!

If you're an Autoblog regular, you probably know that I'm a person who loves all things automotive that make loud noises, handle like go-karts, and generally send my heart rate through the roof. I mean, I keep advocating for carmakers to add a performance version to just about every model lineup. But I've been developing an appreciation for vehicles that simply make life easier and let you decompress, such as our long-term 2018 Chrysler Pacifica Hybrid. I haven't always felt that way. Early in its stay, I frequently avoided taking the Pacifica if I could, mainly because I was turned off by the numb steering and roly-poly nature. Yes, it's a minivan, but I couldn't stop thinking about the Honda Odyssey that came through, which I discovered to be surprisingly nimble. It also packed the sweet sounding V6 in our Honda Ridgeline that I've previously raved about. But then other Pacifica strong suits started to come through. The hybrid powertrain may not be exhilarating, but it's wonderfully quiet. That's to be expected when it's primarily running on the electric motor, but when its V6 engine kicks on, the noise is well-muffled. Road and wind noise is nearly non-existent, too, so whether you're tooling around town or cruising on the highway, nothing is interrupting your tunes, podcasts, talk radio or simple silence. The interior is a lovely place to be, too. Enormous windows, a panoramic sunroof and low sills make this one of the airiest cabins I've been in. And the light color of the upholstery and plastics amplifies the open feeling. After a long, cold Michigan winter, this rolling sunroom is welcome. It also provides superb visibility, making the Pacifica a breeze to maneuver. It's really easy to get inside, too; it has most of the height of a crossover, which takes care of not having to bend down, but it has a much lower floor, so you also don't have to climb up to get in. To cap things off, the Pacifica's ride is excellent. While there's more body roll than I'd like, it glides right across nasty bumps and potholes. And it does so without the heaving and pounding of heavy crossovers and SUVs. It feels more like a luxury sedan. Basically, the Pacifica is ideal for transporting you through life with a minimum of fuss. And so anytime I've had a long stressful day, I'll be looking for the keys to ours.