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Stellantis axed the SRT engineer team, but performance isn't going away

Stellantis has broken up the Street & Racing Technology (SRT) engineering team that created over a dozen high-performance vehicles, including the Dodge Charger Hellcat, but the situation isn't as dire as it sounds. The newly-formed company assigned SRT's former engineers to different positions, where they'll continue to make hot rods. "All of the core elements of the SRT performance engineering team have been integrated into our company's global engineering organization," a spokeswoman told enthusiast website Mopar Insiders. She added that integrating SRT's personnel into other brands in the Stellantis portfolio will ensure that the lessons learned from decades of peddling speed will permeate other products. Previously, SRT operated with a high degree of independence. Don't get too excited. Her statement does not necessarily mean that Citroen will begin building cars powered by the Hellcat engine, though a C3 Chat D'enfer sounds absolutely epic. Technology transfer will likely be limited to fields like aerodynamics and thermal management, and the design department might learn a couple of neat new tricks. Dodge will still move forward with the development of its next SRT-branded cars; the decision to dissolve the SRT team will not affect future models, according to the spokeswoman. Whether they'll be powered by a V8 is up in the air, because company boss Tim Kuniskis warned that regulations are killing the eight-cylinder engine. Similarly, Jeep will continue designing high-performance models, like the Grand Cherokee Trackhawk. What changes is that the model will be developed and designed by a group of engineers and designers from Jeep, not from SRT. SRT is dead, but performance isn't going away. SRT's demise nonetheless marks the end of an era for Chrysler. The division traces its roots to 1989, when some of the company's brightest minds were brought together to develop the first-generation Dodge Viper. It merged with Team Prowler to form the Specialty Vehicle Engineering (SVE) group, which was renamed Performance Vehicle Operations (PVO) in 2002 and finally dubbed SRT in 2004. SRT has operated as the carmaker's in-house tuner since, its resume includes a diverse selection of cars ranging from the Neon SRT-4 to the 1500 TRX, and it was promoted to a standalone brand led by designer Ralph Gilles in 2011. Fiat-Chrysler Automobiles (FCA) axed the SRT brand in 2014 but kept the name and the development team. Related video:

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.

Ford, Stellantis workers join those at GM in ratifying contract that ended UAW strikes

DETROIT — The United Auto Workers union overwhelmingly ratified new contracts with Ford and Stellantis, that along with a similar deal with General Motors will raise pay across the industry, force automakers to absorb higher costs and help reshape the auto business as it shifts away from gasoline-fueled vehicles. Workers at Stellantis, the maker of Jeep, Dodge and Ram vehicles, voted 68.8% in favor of the deal. Their approval brought to a close a contentious labor dispute that included name-calling and a series of punishing strikes that imposed high costs on the companies and led to significant gains in pay and benefits for UAW workers. The deal at Stellantis passed by a roughly 10,000 vote margin, with ballot counts ending Saturday afternoon. Workers at Ford voted 69.3% in favor of the pact, which passed with nearly a 15,000-vote margin in balloting that ended early Saturday. Earlier this week, GM workers narrowly approved a similar contract. The agreements, which run through April 2028, will end contentious talks that began last summer and led to six-week-long strikes at all three automakers. Shawn Fain, the pugnacious new UAW leader, had branded the companies enemies of the UAW who were led by overpaid CEOs, declaring the days of union cooperation with the automakers were over. After summerlong negotiations failed to produce a deal, Fain kicked off strikes on Sept. 15 at one assembly plant at each company. The union later extended the strike to parts warehouses and other factories to try to intensify pressure on the automakers until tentative agreements were reached late in October. The new contract agreements were widely seen as a victory for the UAW. The companies agreed to dramatically raise pay for top-scale assembly plant workers, with increases and cost-of-living adjustments that would translate into 33% wage gains. Top assembly plant workers are to receive immediate 11% raises and will earn roughly $42 an hour when the contracts expire in April of 2028. Under the agreements, the automakers also ended many of the multiple tiers of wages they had used to pay different workers. They also agreed in principle to bring new electric-vehicle battery plants into the national union contract. This provision will give the UAW an opportunity to unionize the EV battery plants plants, which will represent a rising share of industry jobs in the years ahead.