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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.

Rebel Ram TRX prototypes spied on video playing in Michigan dunes

A group of Ram Rebel TRX prototypes has been caught on video testing in Michigan's Silver Lake Sand Dunes. This marks a change of scenery from our last prototype views, which took place on city streets in Detroit and in Arizona. Jordan Denhoed caught the video from a camera mounted on his truck, following the prototypes through the hills. The type of terrain and the presence of a Ford F-150 Raptor reinforce the idea that no matter what else the production Rebel TRX can do, it wants to compete with the Raptor on the Raptor's home field. Denhoed was able to get close enough once to hear the sound of the supercharger working in the 6.2-liter Hellcat V8. Unlike the Rebel TRX concept that was billed with 525 horsepower, the expectation now is that the production version will work up the Hellcat's typical 707 horsepower and shift through a 10-speed automatic. The power figure might have something to do with the staggered wheel lug pattern on the most recent prototypes — six lugs in front, eight lugs in back. The Rebel TRX proto caught in Arizona in August last year used the six-lug pattern all around. Other engine details are fuzzy. Motor1 credits an "insider source" with info that Ram has 40 test mules running, 10 of them in white, 30 of them in black, and one of those testers supposedly has an 840-hp Dodge Demon engine under the hood. The same source said the production version won't use the dial shifter, but a traditional shifter on the center tunnel. At the opposite pole concerning engines, Mopar Insiders reports that the less powerful, less expensive Rebel TR version, using a 7.0-liter V8 with roughly 520 hp, has either been canceled or delayed so Ram can devote resources to the Rebel TRX. The crew-cabbed prototypes in the video all wear the blacked-out treatment and Laramie Black front ends, fender flares over beadlock-looking wheels, and twin pipes. It's hard to tell how much lift comes with the remote-reservoir Bilstein shocks since the wheel arches have been cut out to make more room, but the concept had 13 inches of travel. It's rumored that ARB locking diffs will come on each axle. Having been promised for showrooms by 2022, it's likely we have a couple of years to wait we see the Rebel TRX's final form. We should get our first look at the F-150 Raptor fitted with the Mustang Shelby GT500's Predator V8 around the same time.

2020 Ram 1500 and heavy-duty trucks get Night and Black Edition packages

Ram traveled to the Texas State Fair to introduce a pair of pickups you might not be able to see in the dark. The murdered-out trucks are called Black Edition and Night Edition, respectively. The Black Edition is based on the range-topping Limited variant of the 2020 Ram 1500. It receives -- you guessed it -- a wide panoply of black accents on the grille, tow hooks, bumpers, door handles, and door mirrors. Ram also added black 22-inch alloy wheels and a tonneau cover. The Limited is only offered with a 5-foot-7 cargo box and four doors, but Black Edition buyers can choose two- or four-wheel drive. Engine options include the base gasoline-burning 3.6-liter V6, 3.0-liter EcoDiesel V6, and the mighty 5.7-liter Hemi V8. Rest assured if you plan to work on your own truck, none of the engines receive a coat of black paint, so you'll be able to see what you're doing.  Note that the 2019 Ram 1500 Big Horn and Laramie trim levels is already available with a Black Appearance package, which we reviewed this year. Effectively, the Black Edition extends that darkened courtesy to the range-topping Limited.  The Night Edition package is for the Heavy Duty line of trucks, but it looks a lot like the aforementioned Black Edition trim. It adds a black grille with a body-colored frame, black emblems, and black bezels around the lights, and black wheels. Single-axle trucks get 20-inch wheels, while dually models ride on 17-inch alloys with machined pockets.  The Night Edition package is available on the Big Horn and Laramie variants of the 2500 and 3500 models. Ram noted it can only be paired with a Crew Cab or a Mega Cab. Engine options include the 6.4-liter Hemi V8 and the 6.7-liter Cummins straight-six turbodiesel with 1,000 pound-feet of torque. FCA says the Ram 1500 Limited Black Edition will be reaching dealers late third quarter 2019, which would be any day now. Buyers who want the Heavy Duty-based model will need to wait until "later fourth quarter." The Black Edition starts at $55,385, including destination, a figure that represents a modest $75 premium over the more colorful model. The Night Edition model carries a base price of $39,690, including destination. Pricing for the standard 2020 Heavy Duty hasn't been announced yet, so we don't know how much the package adds to the truck's bottom line.