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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.

2019 Dodge Challenger R/T Scat Pack 1320 gets race-focused upgrades

The Dodge Challenger SRT Demon is one hell of a machine. It's a single-minded 840-horsepower jackhammer, meant solely to burn rubber and win drag races. It's packed with all sorts of goodies like a transbrake, line lock, and a torque reserve mode. Still, it was an extremely limited-production model. It's also sold out. What do you do if you want some fun on the drag strip and you can't find our don't need the power of a Demon? Buy the new 2019 Dodge Challenger R/T Scat Pack 1320. You can really think of the Scat Pack 1320 as a Demon without the wide bodywork and the supercharged 6.2-liter V8. Instead, you'll find Dodge's tried-and-true 6.4-liter naturally-aspirated V8 under the hood making 485 horsepower and 475 pound-feet of torque. The TorqueFlite 8HP70 eight-speed automatic is the only available transmission. It's required equipment to use the TransBrake and Torque Reserve system. All-four wheels are wrapped in Nexen SUR4G Drag Spec 275/40R20 street-legal drag radial tires. The 1320 names comes from the length of a quarter-mile drag strip — 1,320 feet. The Scat Pack 1320 can run the quarter-mile in 11.7 seconds at 115 mph and hits 60 mph in just 3.8 seconds. Of course, that's in its lightest configuration. Like the Demon, the Scat Pack 1320 only comes with a driver's seat. The passenger and rear seats are each $1 options. The goal was to give grassroots racers a bare-bones performance car at a relatively reasonable price. You don't need passengers if you're only racing. You also shave 114 pounds from the car's curb weight. Other upgrades include an SRT-tuned suspension, a 3.09 rear axle ratio, 41-spline rear half-shafts, 20 x 9.5-inch aluminum-forged wheels with knurled bead seats (to keep the tires from slipping on the rim) and upgraded Brembo brakes with four-piston calipers. The Challenger R/T Scat Pack 1320 joins a number of other upgraded 2019 Dodge models. That includes the Challenger SRT Hellcat Redeye and the upgraded 2019 Charger SRT Hellcat. The Scat Pack 1320 adds $3,995 to the Challenger R/T Scat Pack's base MSRP. That's not the whole story. Since the automatic is mandatory, you need to tack on another $1,595. Add in destination, and the Scat Pack 1320 will set you back at least $45,980. Cars will hit dealer lots early next year. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Dodge's divisive splitter guards are now pink and might become black

There is an infinite amount of real problems out there in the world, but for some reason, one of the most dividing issues in the car community relates to a piece of protective plastic on cars. Yes, splitter guards. Since the plastic parts were introduced to SRT variants of the Dodge Challenger and Dodge Charger for 2015, the enthusiast community has been split like a '63 'Vette on the merits and aesthetics of not removing them. Originally, the protectors, which are there to protect the splitter while the car is in transit to dealers, were yellow, which contributed to their popularity. But Dodge has now shifted that color to pink, as Car & Driver reported and Autoblog confirmed.  On one side, upset purists beg they be removed from the cars. They were only put on to protect the vehicles' lower front fascias during shipping and handling, and if left on too long, they will collect dirt and grit and damage the new paint. SRT lead designer Mark Trostle is included in this camp and is quoted saying, "I wish they would take them off." On the other side, there are people who enjoy the contrasting look and see it as a way to stand out or be different.  "Yes, they are designed to be removed before delivery," said Tim Kuniskis, global head of Alfa Romeo and head of passenger cars for Dodge, SRT, Chrysler, FIAT, FCA for North America, in an email to Autoblog. "But today, they have their own Facebook page, and many of our performance enthusiasts have active debates on whether to keep or remove them. Some owners say they are even selling them in the aftermarket!"  The Facebook page he speaks of is called "Hey Pal, You Forgot To Take Your Splitter Guards Off." The private group was started on April 11, 2019, and as of this writing, it is 11,855 members strong. With FCA recently changing the guards to pink, that number will likely continue to grow. "Obviously, they weren't part of the original design," Kuniskis said. "We started with yellow guards and shifted to pink, but they are still so popular that we may shift them yet again to black. Wherever we land, this is another example of how our customers are passionate about every part of their Dodge muscle cars — from the high-horsepower engines that power Charger and Challenger to the splitter guards designed to protect them, so we expect the conversation to continue."  Yellow, pink, black, purple, rainbow, whatever. People will like what they like and hate what they hate. Just do you, and keep the negativity away.