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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.

Pondering the 2018 Dodge Demon and 2018 Honda Accord | Autoblog Podcast #521

On this week's Autoblog Podcast, Editor-in-chief Greg Migliore is joined by Associate Editor Reese Counts and, for the first time, Senior Editor, Green, John Beltz Snyder. We discuss the new 2018 Honda Accord dropping the V6, what the Dodge Demon means for FCA's future, and if Mercedes-Benz could sell a pickup truck in the US. Spend my money (your money, everyone's money) will be back next week. The rundown is below. Remember, if you have a car-related question you'd like us to answer or you want buying advice of your very own, send a message or a voice memo to podcast at autoblog dot com. (If you record audio of a question with your phone and get it to us, you could hear your very own voice on the podcast. Neat, right?) And if you have other questions or comments, please send those too. Autoblog Podcast #521Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Topics and stories we mention Rundown 00:00:00 - Intro + Demon 00:15:48 - Accord 00:28:48 - X-Class 00:43:10 - Outro Feedback Email – Podcast at Autoblog dot com Review the show on iTunes

Dodge Durango gets performance Mopar options for R/T, SRT

Fiat Chrysler is showing new performance add-ons for the 2018 Dodge Durango R/T and SRT models at the Chicago Auto Show, including the familiar Dodge dual center stripes and a new Mopar exhaust system. The 475-horsepower SRT model, which is powered by a 6.4-liter Hemi V8, will also offer a lowering spring kit and a carbon-fiber instrument panel. The signature two-stripe treatment blankets the three-row SUV from the front to rear fascia and is tailored to the signature NACA duct-hood vent. It'll come in five different colors — bright blue, flame red, gunmetal low gloss (metallic finish), low-gloss black and sterling silver — and retail for $1,195 starting in March. View 7 Photos Mopar developed its new bolt-on performance exhaust systems with Dodge SRT engineers and designers to improve flow and achieve that sweet sound. It features a chromium 304 stainless steel construction to make it more resistant to corrosion, with stainless steel band-style clamps and welded and polished 4-inch tips. It costs $1,595 for the Durango R/T and is available now. On the SRT, the price goes up to $1,850, with the package available in the second quarter. New Mopar springs improve the Durango SRT's high-speed cornering stability and consistency by lowering the SUV an average of 15 millimeters, or 0.6 inches. They were developed with proprietary Dodge SRT data not available to the aftermarket to tune the lowering springs to the factory dampers, giving the vehicle less rear-end squat during acceleration, less nose dive while braking and reduced body roll on corners. MSRP on the package, which is available now, is $325. For just under $2,500 you can get the SRT Interior Appearance Group package, which adds a premium-wrapped carbon-fiber instrument panel and door bezels, Dinamica soft-touch headliner and accent paint on speaker trim rings. The Chicago Auto Show is open to the public Feb. 10-19. Related Gallery 2018 Dodge Durango R/T, SRT Mopar performance options Image Credit: Live photos copyright 2017 Drew Phillips / Autoblog.com Chicago Auto Show Dodge SUV Performance tuning sport utility vehicle