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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.

Ram 1500 TRX spied hiding production body work under camouflage

We've seen the upcoming Ram 1500 TRX pickup truck a few times with its Raptor-rivaling suspension and Hellcat-derived powertrain. Those past mules have all worn plain Ram bodies, sometimes with cheap bolt-on fender flares. This time, one of our spy photographers has caught a TRX that seems to be wearing production body work under its heavy camouflage. What stands out on this prototype are the bulging fenders front and rear. Instead of simple wheel housing extensions, these are full-on box flares like the ones worn by the Raptor. The hood appears to be equally bulging, good for highlighting the supercharged V8 underneath. The front bumper is similar to that of the Ram 1500 Rebel's with more raised sections in front of the tires to provide more clearance. We get a solid look under the body, too. Still present are the extra beefy suspension control arms front and rear. Skid plates seem to line the whole underside down the middle. The tires are big Goodyear Wrangler all-terrain tires, though we can't make out what size they are. Previous spy photos have revealed remote-reservoir shocks. The wheels at each end are six-lug units, so it seems Ram isn't playing with a heavy-duty axle like a previous prototype suggested. We're expecting the Ram TRX to go on sale before 2022, so it could be revealed sometime next year as a 2022 model. Based on the TRX concept, the production truck should make at least 575 horsepower and have dune-busting off-road performance. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Driving a Jeep Cherokee to Rocky Mountain National Park | Behind the Wheel S01 // E06 Disclaimer: Autoblog accepts vehicle loans from auto manufacturers with a tank of gas and sometimes insurance for the purpose of evaluation and editorial content. Like most of the auto news industry, we also sometimes accept travel, lodging and event access for vehicle drive and news coverage opportunities. Our opinions and criticism remain our own — we do not accept sponsored editorial.

Ram 1500 TRX fuel economy figures are out — and economy isn't the right word

Ram published many statistics when it introduced the 1500 TRX, but one part of the puzzle was missing: fuel economy. It finally released those figures, and they confirm that supercar-like power brings supercar-like thirst. Driven with a light right foot, the TRX returns 10 mpg in the city, 14 mpg on the highway, and 12 mpg combined. It's the least efficient Hellcat-powered model; Jeep's Grand Cherokee Trackhawk scores 13 mpg combined, while Dodge's Charger and Challenger post 15. Figures for the Durango haven't been published yet, but there's no reason to think it will use more gas than the TRX. At 12 combined, the truck is about on par with the Lamborghini Aventador S. On the surface, that's not great. Keep in mind the mighty TRX was developed for off-road performance, however, and we doubt fuel economy entered the equation at all. It's a body-on-frame truck powered by a 6.2-liter V8 supercharged to 702 horsepower, it has mammoth 35-inch all-terrain tires to push around, and it weighs 6,350 pounds. Viewed in this light, 12 mpg is actually shockingly decent. Conversely, the folks who designed the Toyota Prius weren't concerned about its water fording ability, its approach angle, or its zero-to-60-mph time. Motorists who place fuel efficiency at the very top of their priorities list have a growing list of excellent options to choose from, even if they're in the market for a pickup. At the other end of the Ram spectrum, the rear-wheel drive 1500 posts figures of 23, 33, and 26, respectively, when it's equipped with the 3.0-liter turbodiesel V6. The TRX starts at $71,690 including destination, and it will arrive in showrooms later in 2020. Related Video: