2014 Jeep Cherokee Sport on 2040-cars

Auto blog

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.

Next Jeep Wrangler to keep solid axles

Jeep fans, you're not out of the woods yet, but the latest news is good: Automotive News reports that the next-generation Wrangler will stick with floating solid axles front and rear. Fiat-Chrysler wouldn't comment on the report, but the theory is that the combination of cost, capability, and ease of modification were deciding factors. We're sure the multibillion dollar aftermarket industry is also pleased. Remember, Jeep showed off the lifted Cherokee Dakar Concept at the Easter Jeep Safari last year, but the first ingredient in the recipe for jacking up its independent suspension was, "a whole new suspension." Above that there will be an aluminum body that's smaller than the current one, which Allpar says could be done with a narrower track and tighter gaps. It will sport a fixed windshield with increased rake to improve aero efficiency, and while there are rumors of a diesel-engined version that we'll finally get in the US, there's been no reliable info as of yet to back that up. Related Video: News Source: Automotive News - sub. req. Jeep Truck Off-Road Vehicles

Steve McQueen's U.S. Army Willys Jeep is up for auction

It's not a Bullitt Mustang, but this World War II Willys Jeep up for auction was still owned and driven by the famous Steve McQueen, and it could now be yours. Heading to the block with Silverstone Auctions, this 1945 Willys was bought directly from the U.S. Army by McQueen himself. The Willys was sold in 1984 as part of the Steve McQueen Estate Auction for a whopping $6,000, and then sold to its current owner some undisclosed amount of time after that. Currently, the Willys resides in the U.K. where it was completely restored to the state it would have been in during McQueen's ownership. The restoration process was completed by the Jeep experts at Jeeparts. It comes with a certificate of authenticity from the Steve McQueen Estate Sale to ensure its legitimacy. Silverstone Auctions is predicting a final hammer price of $105,00 - $131,000. That's pretty exorbitant for an old Willys, but there's certainly been a bit of excitement around the late actor here recently. Bonhams just auctioned off some old motorcycles owned by McQueen, and Ford has finally brought the Bullitt Mustang back to the market. If you're a fan with a little (or a lot of) extra change in your back pocket, this looks like a perfect way to have some off-road fun in a car with some seriously special history. The auction is taking place Nov 10-11 near Birmingham in the U.K. Related Video: