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.

Car Club USA: Louisiana Mudfest

There's nothing quite like mudding. Big tires, huge power, and crazy-wild gearheads that like to throw down on a mud pit almost as much as a thirty rack of Coors. In the latest, and some might argue greatest yet episode of Car Club USA, we head to Louisiana to throw some dirt at Mudfest. As Louisiana's one and only Mouth of the South puts it, "If you don't mud ride... go to Texas I guess." Joining The Mouth and friendly rivals The Most Hated Mud Sluts, we dive in. Beyond the obvious V8 blasting and tractor-tire spinning, those who know best describe Mudfest as, "Good cooking, good friends, good fun, and a lot of partying." It's a motorsport spectacle unlike any you're likely to find up North or out West, though no less impressive to behold. Follow along with the fun, the impromptu drag racing, the trash talking, and the mechanical madness. And find out why, at Mudfest, "if we don't tear it up, we ain't done it right." Each Car Club USA episode features a different car club or event from across the US, where passionate owner communities gather to share automotive experiences and embark on incredible adventures. From Main Street cruises to off-road trails, catch all the latest car club activity on Autoblog. Chevrolet Ford Jeep RAM Truck Off-Road Vehicles Car Club USA Videos autoblog black

2019 Ram 1500 North Edition is bundled up for winter

The 2019 Ram 1500 North Edition combines a host of features into a special edition meant to keep the abominable winter at bay. Based on the Big Horn trim, which sits just above the base Tradesman, Ram says the North Edition is "geared toward truck owners who need more capability and warmth on their frozen drive." The means 4x4 only, with your choice of crew cab or quad cab, 5'7" bed or 6'4" bed, and either the 3.6-liter Pentastar eTorque or or the 5.7-liter Hemi V-8 with or without eTorque. To that canvas, Ram adds some of the features from the Off-Road package, including heavy duty shocks with a one-inch lift, locking rear axle, and tow hooks. Weapons against the cold include an engine block heater, and Level 2 Package options like heated seats and steering wheel, heated and folding mirrors, and remote start for pre-warming the cabin. There are individual extras, like the 12-way power driver's seat with four-way lumbar support, instead of the eight-way seat normally part of the Level 2 package. Snow service-rated, three-peak mountain snowflake (3PMSF) Falken LT tires toil outside to keep the rubber on the road; the standard Off-Road package uses Falken All-Terrains (AT3WA). Mopar floor mats toil inside to keep slush and grime from spoiling a good time. A monochromatic appearance package paints all the exterior trim pieces one hue. One splash of contrast comes with the 4x4 decal along the flanks, the other is what looks like a set of 20-inch, six-spoke wheels. The Ram press release didn't mention the special rims, but on the configurator, when we clicked the 20-Inch x 9.0 Aluminum Chrome-Clad Wheels, we were forced to add the North Edition package. As of writing, the configurator pricing appears to be at odds with the MSRP stated in the press release. Start with the $41,490 Ram 1500 Big Horn 4x4 on the build site, add the North Edition package, and the price shows as $45,285 before a $1,695 destination charge. Ram says the truck is available at dealers now, but lists an MSRP of $45,890 before destination. There's a $605 difference between the two numbers. The build site doesn't pre-select the 20-inch wheels with the North Edition package, though. Normally a $1,595 option, adding the wheels to the build raises the price by $200, to $45,285, leaving a $405 difference. Point being, assume the dealer will start the bargaining with the $45,890 price.