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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.

Marchionne: Midsize pickup still not in the cards; Ram 1500, Jeep Wrangler could use aluminum

During the Fiat-Chrysler briefings on Tuesday, Reid Bigland, head of Ram Trucks, outlined the new product plans for his brand, including confirmation that an all-new light-duty Ram 1500 will launch in 2017. From there, discussions spun off in two directions, with the main questions being: will Ram build a midsize pickup? And, following Ford's move to extensively use aluminum in its new 2015 F-150, will Chrysler be using this weight-saving material for the next round of its fullsize truck, as well?
"I think there is room for a Ram 1000," Fiat-Chrysler CEO Sergio Marchionne (pictured above) told members of the media, saying this is a conversation the automaker has been having internally for several years now. "We've tried this ... we've actually taken it to clinics," Marchionne stated, adding that the "response has been lukewarm."
"I have better use of aluminum in this house than a pickup truck." - Sergio Marchionne

2018 Ram 1500 Buying Guide | Popular pickup information and review

Spun out from Dodge as a standalone truck brand in 2009, the Ram 1500 is a full-size pickup and oldest in the stable of Big Three pickups, last updated in 2013. But it commands a loyal following among truck buyers, thanks to things like its styling, rugged capability, comfortable ride and innovative storage systems. It will be replaced by the 2019 Ram, an all-new truck, but for now the 2018 is still on sale – and will be for some time, as it'll be rebadged as the 1500 Classic and sold alongside the new pickup for a period of time. This buyer's guide covers the 2018 Ram 1500, not the 2019 1500 or 1500 Classic. The 2018 Ram 1500 is available in a whopping 11 different trim levels, ranging from the entry-level Tradesman to the luxury-minded Limited Tungsten edition, with many of the top-level trims getting the redesigned Ram grille and large Ram emblem on the tailgate that will become standard on the all-new 2019 Ram. It's also offered in crew cab, quad cab and regular cab, and. With this buyer's guide, Autoblog aims to help you make an educated decision about whether or not to buy the 2018 Ram 1500. We'll touch on safety and reliability ratings, engine specs, horsepower, fuel economy ratings and pricing. And we'll conclude with a summary of Autoblog's most recent test-drive of the Ram 1500. Ram 1500 safety ratings The National Highway Traffic Safety Administration gives the Ram 1500 an overall rating of four out of five stars. On frontal crashes, the trucks gets four stars, and it gets a top rating of five stars for side crash protection. Rollover crash ratings range from three of five stars for the four-wheel-drive versions to four stars for rear-wheel-drive models. Crash ratings from the Insurance Institute for Highway Safety are more of a mixed bag. IIHS gives the Ram 1500 "marginal" ratings for driver-side small overlap front crash protection, roof strength, headlights and LATCH child-seat anchors, while assigning "good" ratings for everything else. Because ratings may vary for Ram 1500s from other model years, you should visit the NHTSA and IIHS websites to review ratings on the specific vehicle you're researching. Is the Ram 1500 reliable? You have to go back to the 2016 model-year for the last Ram 1500 that J.D. Power reviewed. It gave the pickup two out of five stars — "below average" — for overall quality, and three of five stars — "about average" — for overall performance and design, and predicted reliability.