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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.

Chrysler 300 diesel could get green light

Word has it Chrysler is keen to shove its new turbo diesel V6 into a range of models. Wards Auto reports Chrysler President and CEO Saad Chehab has made it clear the automaker is investigating the possibility of using the 3.0-liter oil-burner in the 300. While speaking at an Automotive Press Association luncheon, Chehab said, "It's a matter of how much the customer is willing to pay for that premium. That's the only issue with it."
The Chrysler 300 is sold as the Lancia Thema in Europe complete with a diesel of its very own, and since the Jeep Grand Cherokee is now available with the diesel V6 here in the States, it only makes sense that the engine could potentially show up on the 300 order sheet. Opting for the 3.0 V6 in the Jeep Grand Cherokee will set you back an additional $4,500, however.
Chehab also said the engine could make an appearance in the next-generation Chrysler 200, which is set to debut next year.

Junkyard Gem: 1990 Plymouth Voyager Turbo

There was a time when the word "TURBO" was king, and even Detroit minivans came with nervous, hair-drier-boosted engines and screaming TURBO badging. Why, some of them even had manual transmissions (sadly, not this van) and in the case of the 1990 Plymouth Voyager Turbo I spotted in a Denver self-service wrecking yard, a lysergic purple paint plus a Bordello Red interior. The first-generation Voyager minivan (not to be confused with the full-sized B-series Voyager van that preceded it) was a tremendous smash hit for Chrysler. Because it came from the K-Car platform, most of the powertrain options available for other members of the many-branched K Family Tree— from the Mitsubishi Astron to the Chrysler turbo 2.5— went into the Voyagers, Caravans, and Town & Countries. The turbocharged 2.5-liter four, rated at 150 horsepower, was an option for the 1989 and 1990 Voyagers. That doesn't sound like much today, an era in which the Voyager's descendants churn out close to 300 horses, but it was lunacy for a front-wheel-drive family hauler that weighed just over 3,000 pounds. And people eventually discovered they could be made far faster than stock. Voyager shoppers could get five-speed manual transmissiona with their Turbo 2.5 engines, though few did. Still, there were more Voyagers and Caravans with the 5-speed than you might think, in part because of the manual transmission's lower cost. The slushbox didn't conquer the Chrysler Corporation Minivan World until 1996. Nissan probably had the most vividly red interiors of the late 1980s and early 1990s, but Chrysler didn't lag far behind. Look at these acres of shiny red plastic and tough, red I Can't Believe It's Not Velour! Because minivans remain useful for decades, most of them have high odometer readings by the time they get junked. So at a little over 115,000 miles, this one may have had a busted speedometer cable. Speedometers reading better than 85 mph were legal after 1981, but perhaps Chrysler decided not to encourage lead-footed hoonery among minivan drivers. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Auntie Entity pitching "the best-loved minivan in the world." Featured Gallery Junked 1990 Plymouth Voyager Turbo View 19 Photos Auto News Chrysler Dodge Automotive History Minivan/Van dodge caravan