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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.

Chrysler recalling 31k SUVs and vans

Chrysler is issuing recalls covering roughly 31,700 vehicles worldwide due to two separate problems. In both cases the company believes that most of the affected vehicles are either still on, or in transit to, dealer lots.
One recall covers roughly 10,700 Dodge Durango, Jeep Cherokee, Grand Cherokee and Grand Cherokee SRT models from the 2014 model year built between January 16 and April 17, 2014. The SUVs need a software update for the cruise control. It's possible that when the cruise is on and the driver presses on the throttle, the acceleration could last a second after the pedal is released or two seconds for the SRT. Afterward, they return to the speed originally set by the driver.
Chrysler says it isn't aware of any accidents, injuries or even reported incidents of this happening in the real world. Also, in all cases, if the driver presses on the brake, the cruise shuts off. The automaker believes that there are about 6,100 affected SUVs in the US, 950 in Canada, 425 in Mexico and 3,200 outside of North America. The software upgrade will be ready shortly, the company says.

Jeep Wrangler Scrambler pickup truck spy shots reveal top and lighting details

Several spy shots have come out that give us further insight into the new Jeep Wrangler Scrambler pickup truck. Among them are some photos of a prototype being driven near FCA test facilities. They show that the Wrangler will have LED headlights available similar to those on the SUV model, as well as the new Renegade revealed for Europe. They also show the taillights of the pickup, though they appear to be units from a previous-generation JK Wrangler. They're probably placeholders for the new model's lights. View 22 Photos These photos also include images of the truck's interior. The dashboard is a mash-up of old pieces, including a JK Wrangler dash, and a Chrysler-badged steering wheel. But the important part of these photos is that they show parts of a normal Wrangler SUV roll cage, and latches holding down roof panels. These are evidence that the production model will have a removable roof. Further evidence comes from photos taken by someone from the Jeep aftermarket part company Artec Industries was checking out the factory in Toledo, Ohio. The images were brought to our attention by Jeep Scrambler Forum, and they show an unfinished Wrangler pickup body sitting in the doorway to the painting facility. The photo is below, and it confirms a number of details. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This body has the same style of roll cage as those found on the SUV versions of the Wrangler. Specifically, it looks like a combination of the upright rear cage of the two-door, with the length of the Wrangler Unlimited's cage. In addition to confirming the removable top, the windshield also appears to fold down, too. Beyond the confirmation of the top and windshield features, the rest of the cab looks almost identical to any other 2019 Wrangler Unlimited. The fenders and hood are the same, down to the fender vents, as are the doors. The cab shows that there was clearly room for full-size doors, which would have been welcome from an access perspective, but that would naturally cost more than already developed parts, It also means that any aftermarket doors or door accessories created for the Unlimited will work with the Scrambler. We can also see that there's a small diagonal indent in the cab where part of the rear fender will fit. It also matches up with the line of the rear door.