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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.

Angry teen drives Ram pickup into Walmart after argument with girlfriend

Caleb Wilson, a 19-year-old from Eldoarado, Texas, went shopping with his 18-year-old girlfriend at the Walmart in San Angelo, Texas, just after midnight Thursday morning. Wilson and his girlfriend apparently got into an argument that they carried into the parking lot after leaving the store. A female bystander, concerned for the girlfriend, went outside and convinced the girl to go back into the Walmart. Wilson waited in his 2001 Dodge Ram 2500 pickup just outside the store. When the woman and the girlfriend went outside a little later to see if Wilson had left, Wilson hit the gas and drove into the Walmart, trying to run the two women over. Just as police arrived, Wilson turned his truck around and sped out. He crossed the parking lot, colliding with a parked, unoccupied Toyota Camry, and finally came to a stop at a Murphy USA gas station at the edge of the lot. Police noticed fuel leaking from the Ram, and another bystander noticed sparks from something dragging along the asphalt. Police got Wilson out of the truck, after which he briefly resisted arrest, then took Wilson to the hospital for mental health evaluation, where he remains. Police believe he was under the influence of an intoxicant. Incredibly, neither the women nor any of the store's customers were hurt. That wasn't for lack of trying on Wilson's part, though - the teenager rammed his way past the bakery, produce, frozen food and canned veggies sections before finally reaching the cereal aisle. One shopper said she heard screaming and was sure there was a gunman in the store, before realizing it was a man in a vehicle. Wilson stopped two aisles away from where the shopper hid. Another customer said Wilson spent several minutes burning rubber inside the store, as store employees helped customers hide and get out. Security cameras caught the rampage, and San Angelo police estimate he did $500,000 in damage. Wilson has been charged with suspicion of first degree felony criminal mischief and two counts of aggravated assault with deadly weapon. Repair crews worked overnight to fix the damage. After "an employee pep talk," the Walmart opened again at 9:30 am. Related Video: News Source: Go San Angelo Auto News Weird Car News Dodge RAM Truck Videos dodge ram 2500

Chrysler recalling 278,222 trucks and SUVs over bad rear axles

Chrysler has issued a recall of 278,222 light trucks and sport utility vehicles here in the United States. The reason: bad rear axles. Specifically, according to the National Highway Traffic Safety Administration, the rear axle pinion nut may lack a necessary adhesive patch, which could cause the nut to loosen. If this happens, the axle can lock up, which could cause all sorts of havoc on the road.
This is an expansion of the rear axle recall announced in October of last year, where 44,300 Ram 1500 and Dodge Dakota models were being called in. At that time, 12 accidents had been reported due to the faulty axle pinion nut.
Affected vehicles include Ram 1500 trucks from the 2009 to 2012 model years, Dodge Dakota models from the 2009 to 2011 model years, and both the Chrysler Aspen and Dodge Durango SUV twins, both from the 2009 model year only.