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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.

2019 Jeep Cherokee revealed | All-new engine, refreshing new face

When the Jeep Cherokee made a return in late 2013 as a replacement for the boxy Jeep Liberty, reactions were mixed on the crossover's styling. Sure, all the Jeep hallmarks were there — seven-slot grille, squared fenders, etc. — but something seemed different, especially with that face. Well, the course has been corrected and at this week's Detroit Auto Show, the 2019 Jeep Cherokee shows off its much more conventional and conservative styling. This is just a mid-cycle refresh, so it doesn't look all that much different than the current KL Cherokee. Jeep ditched the split lighting on the current model, pushing the driving lights and headlights back together and in a much more traditional position. Unsurprisingly, its very similar to what you'll find on the current Jeep Grand Cherokee and Jeep Compass. In addition to the new LED headlamps, the driving lights and fog lamps get a new design. The rear end, too, gets a heavy redesign. The taillamps now have LED accents, though the overall shape is generally the same. A new tailgate now houses the license plate, making the Cherokee look less bottom heavy. Along the bottom, Overland models get chrome tow hooks while Trailhawk models get the now recognizable bright red hooks. The Trailhawk also gets a resculpted front bumper for a better approach angle on the trails. Other Trailhawk goodies include skid plates, bigger fender flares, an increased ride height and 17-inch wheels with off-road tires. There are five new wheel offerings in total, including a 19-inch design for the Overland trim. In contrast to the outside, the Cherokee's interior carries over nearly unchanged. From behind the wheel, you'd be hard pressed to spot a difference between the old and new. There are some new piano-black trim pieces around the infotainment screen and matte silver trim around the air vents and steering wheel. The center console does get a slight redesign, moving the USB port and 115-volt outlet rearward to create a bit more storage space. The biggest change is in the cargo area where three extra inches of width give the Cherokee 27 cubic feet of cargo space. Underneath the hood, you'll find one of three powertrains, including a new 2.0-liter turbocharged inline-four. That engine joins the 271 horsepower 3.2-liter Pentastar V6 and the 180 horsepower 2.4-liter Tigershark inline-four. All three engines are paired with a refreshed nine-speed automatic sending power to either the front or all-four wheels.

April Fools' Day brings Jeep Sedan, Hyundai N Roadster, Toyota Yaris pickup and more

There is one day out of the year when public relations professionals have permission to lie to journalists and to the public: April Fools' Day. Manufacturers release details about wild, weird and wacky new technology, concept vehicles and services. Some take it to obvious outlandish extremes (Jeep Sedan anybody?), while others plot to mislead with products that are just outside the realm of possibility. Check out all the "jokes" below. BMW Motorrad BMW doesn't want to exclude anybody from experiencing the thrill of high-level racing, so it is introducing 'iRace" autonomous programming on its S 1000 RR sport bike. It includes beginner, sportsman, advanced and unlimited driving modes, and stores GPS information for all Superbike world championship tracks. Hyundai Hyundai is wrong for this. The Hyundai N Roadster is the work of South Korean designer Yeonjoon Park and features a 2.0-liter turbocharged engine, rear-wheel drive and a hard convertible top. Hyundai says this is a "concept (for now)," but we think it'd make a seriously great Mazda Miata competitor. Honda Honda wins the award for the best interactive gimmick, as its press release for the '90s-inspired special-edition Pastport includes a live hotline number with a message from Fred Savage. Call 1-833-PASTPORT for more information. Jeep Put the Jeep Cherokee face on the Chrysler 300's body, and voila! The 2019 Jeep Sedan is born. We can't decide if the name or the rendering is better. Land Rover Accessibility to charging ports is of major concern to anybody with a plug-in vehicle. So, with the recent launch of the Range Rover P400e and Range Rover Sport P400e, Land Rover is putting forth an effort to install more stations around the globe. First up is Scotland's Isle of Skye. Adventurers need juice too! Lexus Australia Lexus expands its Encore service to include doggos. The new service, called Enpaw, will take pups to luxury boarding kennels in style. Toyota U.S. Toyota created the Yaris Adventure pickup for "those who want to tell their friends they own a truck but never veer off pavement." It's part Mazda 2, part RAV4, 100 percent ute and it looks ... great? Creating a new segment might be all fun and games to Toyota, but Ford is reportedly considering a Focus-based ute in a similar, albeit larger, style. Toyota Australia Toyota is launching a new HiAce van, and it's already getting a limited-edition variant called the PieAce.