2014 Fiat 500l Trekking on 2040-cars

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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.

Stellantis to offer electric versions of most of its European lineup by 2025

Newly merged automaker conglomerate Stellantis will offer electric versions of almost all of its European lineup by 2025, it said on Thursday, as the auto industry faces regulatory pushes in Europe and China to accelerate the shift to zero-emission cars. Formed in January by the merger of France's PSA and Italian-American group Fiat Chrysler, Stellantis is the world’s fourth largest carmaker with 14 brands including Opel, Jeep, Ram and Maserati, and like its peers faces an investor community keen for a road map to an electric lineup to rival Tesla . Speaking during Stellantis' first annual shareholders meeting, Chief Executive Carlos Tavares said that in 2021 the carmaker expects sales of electrified vehicles — that is, both plug-in hybrids and fully electric models — to more than triple to over 400,000 units in 2021. By 2025, electrified vehicles should make up 38% of European sales, a huge jump from the 14% of sales it expects in 2021. Tavares said by 2030 electric models should make up 70% of European sales and 35% of U.S. sales. He said Stellantis will use four electric platforms for passenger vehicles across its 14-brand empire — small, medium and large sizes for cars, and "frame" for high-margin SUVs and pickup trucks. Sweden's Volvo said this month its lineup would be fully electric by 2030, and Ford Motor Co said in February its lineup in Europe would be too. BMW has said at least 50% of its car sales should be fully-electric models by 2030. Sales of electric and plug-in hybrid cars in the European Union almost trebled to over 1 million vehicles last year, accounting for more than 10% of overall sales. Green Alfa Romeo Fiat Jeep Maserati Citroen Lancia Opel Peugeot Vauxhall Electric Hybrid Stellantis

Fiat 500X and 500L could be combined into 500XL for next generation

The Fiat 500L, classified as a subcompact minivan, has been on sale since 2012 in Europe, since 2014 in the U.S. Its subcompact crossover platform-mate, the 500X, went on sale in 2014 in Europe, replicating the same two-year delay in getting to the U.S. Neither has managed to make much of an impression in the U.S., but the 500X has done solid business globally, moving more than 455,000 units in Europe alone since going on sale and still putting up strong numbers deep into its first generation. The 500L, far from the prettiest offering in an unloved segment, has seen its European sales numbers decline from 94,114 in 2014 to 36,495 last year, but that's still not a shabby figure. AutoExpress figures the twins will roll out second-generation versions in about 18 months, but word from Fiat boss Olivier Francois suggests they could meld into a single 500XL model combining the best of their individual traits. What's more, the resulting vehicle is viewed as a prime candidate for electrification, Francois citing the roomy, high-riding 500L as "a particularly good body, high on wheels, to add batteries [to]." The 500X injects appeal into the equation, since Fiat needs to "think of the next generation with the same approach to the consumer that makes a lot of sense in an all-electric version, with a body that is obviously more relevant and in fashion. We’re thinking maybe a blend of the X and L is the way ahead, at the end of the day. But it is not for the near future – and when I say near, I mean not by the end of this year, for sure." Francois' mention of the 500L having a good body for full electrification begs the question of a second-generation platform. The new battery-electric 500e rides on a bespoke EV architecture that's so far only publicly planned to support other electric minicars like an electric Panda and the production version of the Centoventi EV concept. The Renegade has been electrified with a PHEV model, and it would make sense for that tech to cross the aisle into the Fiats — the Jeep is built in the same plant as the Italians, after all — but potentially being so close to a new generation, Fiat could opt to save money and go with one of its mild hybrid solutions for now. Considering what Fiat has on its to-do list over the next 18 months, however, from managing its own affairs post-coronavirus to completing the merger with PSA Group, anything is possible. All we can be sure of is that U.S.