2001 Jeep Grand Cherokee Laredo Sport Utility 4-door 4.0l 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.

2017 Los Angeles Auto Show Recap Livestream

Autoblog editors discuss the highlights of the 2017 Los Angeles Auto Show. The Jeep Wrangler and Chevy Corvette ZR1, were huge stars, but more mainstream SUVs like the Hyundai Kona, Subaru Ascent, Nissan Kicks and Lincoln Nautilus were also significant. Editor-in-Chief Greg Migliore and Senior Editor John Beltz Snyder discuss the latest from L.A. LA Auto Show Jeep Subaru SUV Videos 2017 LA Auto Show

Jeep Wrangler 4xe, new Honda Civic and EV infrastructure | Autoblog Podcast #677

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and Yahoo Finance Senior Producer/Reporter Pras Subramanian. They start things off by talking about what they've been driving, including the Jeep Wrangler 4xe, Chevy Bolt EUV, Nissan 370Z Nismo and Mitsubishi Eclipse Cross. They discuss the reveal of the next-generation Honda Civic, opine about the Mercedes-AMG One hybrid supercar, talk about EV charging infrastructure and reminisce about the Hyundai Genesis Coupe. Finally, they reach into the mailbag to help a listener pick a used grand tourer. Autoblog Podcast #677 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving:2021 Jeep Wrangler 4xe 2022 Chevrolet Bolt EUV 2020 Nissan 370Z Nismo 2022 Mitsubishi Eclipse Cross News 2022 Honda Civic revealed Mercedes-AMG One spy photos Green infrastructure Why the gas stations of the future might not include EV chargers — yet Ultium Charge 360 Used Vehicle Spotlight: 2010-2016 Hyundai Genesis Coupe  Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related Video: