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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.

Will Dodge limit 2015 Challenger SRT Hellcat to 1,200 units?

With over 700 horsepower on tap and a price tag barely over $60k, Dodge appears on paper to have a winner on its hands with the new Challenger SRT Hellcat. But if you want to get your hands on one, you may have to act quicker than this most powerful of muscle cars covers the quarter-mile.
That's because, according to our compatriots over at Edmunds, Dodge may limit production - in the first year, at least - to just 1,200 units. That would amount to barely a quarter of the Challengers that Dodge moves each month, and would also mean only one Hellcat for every two Dodge dealers in the US - which could lead to some serious contention over which stores and which customers can get their hands on the ultimate Challenger.
Reached for comment, SRT spokesman Dan Reid told Autoblog that "there is no plan to limit production of the Challenger Hellcat," echoing the words of Dodge CEO Tim Kuniskis who told Edmunds: "We don't know what the market demand is." Which doesn't mean that it won't restrict production, but doesn't mean that it will, either. It just hasn't decided yet - or announced any such decision, at any rate - over what will be the final allocation strategy for what could be a game-changing muscle car. That is, at least, until new versions of the Mustang and Camaro come along in pursuit of Dodge's bragging rights...

Mopar unveils Dodge Challenger Drag Pak [w/video]

Dodge is going drag racing, and it's doing it with an all-new version of the Challenger for NHRA's Sportsman class. FCA's Mopar parts and performance arm announced the new Challenger Drag Pak Friday, showing off a version with a 354-cubic-inch (that's a 5.8-liter, by the way), supercharged V8 and a 426-ci (7.0-liter), naturally aspirated V8 – both Hemis, of course – that can get the big coupes through the quarter-mile in "the eight-second range." While the two engines deliver similar performance, at their base, they're quite a bit different. The supercharged model uses a cast-iron block, while the 426 has aluminum for both the block and head. That said, both models get customized engine calibrations, and are mated to unique, race-spec automatic transmissions. But drag racing is about far more than just outright power. Mopar significantly updated the four-link rear suspension, adding a four-inch rear axle from Strange Engineering, along with an aluminum, nine-inch third member, while the rear-axle housing has been strengthened in general. Both the rear shocks and front struts can be adjusted for rebound and compression, too. Lightweight 15-inch wheels, meanwhile, are shod in super-sticky Hoosier drag radials, with nine inches of tread in back and 4.5 inches in front. The new Challenger Drag Pak should run the quarter-mile in "the eight-second range." In the cabin, there's an NHRA-spec roll cage, a Racepak gauge cluster, and a handsome pair of Sparco racing seats. Outside, supercharged models get blue decals, while naturally aspirated varieties get black stickers, although there's more to the new Challenger dragster's exterior than just its decals. Mopar tweaked the big-scoop hood, promising it's easier to get up to check on the engine, and the designers also added trailer tie-down straps in both the front and rear. While the dragster was the big news today, Mopar officials also announced the two enhanced Scat Pack kits for both the Dodge Charger and Challenger R/T. The 5.7-liter Hemi models gain an extra 56 horsepower and 30 pound-feet of torque in the Scat Pack 2 thanks to a new cam, valve springs, pushrods, and gaskets. The Scat Pack 3, meanwhile, adds 75 hp and 44 lb-ft, on top of the gains from the lower packages. That should be perfect for drivers who wish to snort in the face of their SRT 392-driving friends. The third stage adds a ported cylinder heads, as well as high-flow manifolds and catalysts.