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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.

We test the latest Easter Jeep Safari off roaders in Moab

The Easter Jeep Safari began as a play for tourism: in 1967 the Moab Chamber of Commerce invited "the Jeeping community" to ride a single trail on the Saturday before Easter. The attendees were mostly members and friends of the Chamber of Commerce. Now, 52 years later, the nine-day Safari takes place on more than 40 trails and lures thousands of Jeepers, who put on one of the biggest and best modified Jeep shows in the world. Cue the designers at Jeep and Mopar, who mastermind new ideas every year for what a modified Jeep could look like, with inspiration from the experiences they have and the mods they see at the Safari. We flew to Moab to drive the seven newest concepts, and start the recap with the disappointments: The B-Ute and the 4-Speed, but only because we couldn't drive them. Before the day had properly begun, those two designer treats had tapped out. The Renegade – internally codenamed B Utility, hence the "B-Ute" name – always feels like The Little Engine that Could when placed next to its halo Wrangler brother. In addition to the cosmetic changes, designers put the arcane caption "Lt. Jenkins" above "FWD1337" (explanations of those two memes here and here). The B-Ute would have been nice to drive if for no other reason than shouting "Leeeroy Jenkins" all around the course. View 16 Photos We rued missing out on the 4-Speed. The blue wonder is the third of a conceptual trio called "The Lightweights," focused on nimble trail handling provided by weight savings. The first of the Lightweights, the 2011 Pork Chop concept, cut 900 pounds from a standard Wrangler Sport. The 2013 Stitch concept lopped 1,100 pounds. The 4 Speed omits 900 pounds. Jeep brought both earlier concepts, and they were revelations. The Stitch was a throwback to stripped-out Dukes-of-Hazard-style Jeep romping. Round vents at the edges of the instrument panel act as side mirrors, Fiat Abarth seats grip occupants, the lemon-hued bikini top sewn from a transparent welding curtain bathes the cockpit in yellow light. Daisy Duke drove a 1980 CJ-7 that had 87 horsepower to move 2,700 pounds. The Stitch weighs about 3,200 pounds, but gets 290 hp. The Stitch skimmed over rocks and floated over sand, so light on its feet that Jeep lead designer Mark Allen told us the 35-inch Mickey Thompson MTZ tires were inflated to a mere 3 psi. The 4-Speed concept's pretty close to the Stitch weight thanks to carbon bits and lighter four-cylinder engine.

2014 Jeep Cherokee

The Cherokee Is Dead. Long Live The Cherokee.
There are three sentences that, for this reviewer, define what needs to be conveyed about the 2014 Jeep Cherokee. The first: it is very good.
Jeep spent 27 years building the Cherokee and its brand, from 1974 to 2001. Twelve years ago, the Cherokee nameplate rolled away into the distant hills and retirement, at least here in the NAFTA colonies, and it was replaced by a loaded word we knew as "Liberty."