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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 to go on a Rampage with new small pickup?

When people look back at today's automotive industry, what do you think they'll remember us for? The emergence of hybrids? Ever more expensive and exotic supercars? The dawn of the self-driving car? All likely scenarios, but so is the blurring of lines between one bodystyle and another, giving rise to hardtop convertible coupes and crossovers of every shape and size. But one bodystyle the North American auto industry has stayed largely away from in the past couple of decades is a car nose and chassis with a pickup bed.
It's a bodystyle immortalized by the Chevrolet El Camino, but with few exceptions, we haven't seen too many of these automotive platypuses in recent years on our turf. Subaru tried with the Baja and the low-volume Honda Ridgeline soldiers along largely unchanged, but the genre's biggest adherents are still Down Under, where ute versions of the Holden Commodore and Ford Falcon live. With a few other examples scattered to the four corners of the earth, that's really about it. But if these spy shots are anything to go by, it looks like Fiat Chrysler Automobiles could be working to bring it back.
Spied undergoing testing in Michigan, what we appear to be looking at is a heavily disguised Fiat Strada being prepared - like the Fiat Ducato-based Ram ProMaster and the smaller Doblo-based ProMaster City - for Stateside duty as a Ram product. The Strada, for those unfamiliar, is a product of Fiat Automóveis in Brazil and is based on the Palio economy car. The nameplate has been around South America since 1996 and was originally designed by Giorgetto Giugiaro (long before Volkswagen monopolized his talents), and takes a more rugged approach in the form of the Strada Adventure.

Is Ram bringing a trick tailgate to the Chicago Auto Show?

Last week featured running jokes and mirth on truck Twitter. It started when the GMC account played off the Super Bowl, posting a short video that started with the caption, "The Rams already lost." Then came a picture of a current Ram tailgate, followed by a short pictorial demonstration of the six-function MultiPro tailgate available on the GMC Sierra (pictured). Ram responded with a pigskin play of its own, calling GMC out for a false start and requesting everyone "Check back with us on 2/7/19." That is the first media day of the Chicago Auto Show. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The easy inference is that Ram has plans to reveal a clever tailgate of its own. The easy question is, will it be the split tailgate we first saw in a patent application in 2014, then in spy photos in 2017? That patent application detailed a gate split down the middle, with a traditional handle on the left-side door. The entire unit could open like a standard tailgate, or, each half could fold down like a tailgate as well as swing out like a door. The Honda Ridgeline has a similar option, but not being split, the Ridgeline's whole tailgate swings out like a door. Another novel feature of the Ram patent application was that the doors could be operated with a touchpad. When spy photographers caught a 2020 Ram prototype in Detroit with a split tailgate, the split was no longer 50/50, but about 65/35. After snapping the silver truck that day, the split tailgate was never seen again. Thursday in Chicago might be the day that changes, since it's fair to expect Ram to show something that will get the 1500 current with proliferating tailgate trickery. GMC and Ram weren't finished, though. The Ram 1500 won the Motor Trend Truck of the Year award at the Detroit Auto Show, and two hours after GMC's first tweet, GMC got around to sending this bit of congratulations: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.