2005 Dodge Ram 2500hd Quad Cab 4x4 on 2040-cars

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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.

Dodge lets us drive 100-years' worth of history [w/videos]

A raft of important production models from the last hundred years were available for me to either drive or ride in.
Dodge is 100 years old this year. So, as happened on Ford's recent centennial, the 50-year birthday of the Porsche 911, and others, the company has an excuse to trot out the highlights of its history next to its upcoming model lineup, and declare that "these are the fruits of the Dodge Boys' tree whose roots have grown strong." Or something like that. Never so hampered by marketing skepticism that I'll pass up the opportunity to burn someone else's rubber, I was happy to drive out to Meadow Brook Hall in Rochester Hills, MI - former grand estate of the Dodge family - to hear the spiel.

2019 Dodge Durango GT Blacktop | Blacked-out family hauler

We recently spent a day at FCA's Chelsea Proving Grounds here in Michigan, and after we had had a little too much fun driving the new 2019 Dodge Durango Pursuit, we took a ride in the updated Durango GT. New for 2019, the GT gets a new front fascia borrowed from its R/T and SRT brethren. It also gets standard LED fog lamps. The optional performance hood is inspired by the SRT model, with a single air duct and two heat extractors. In the rear. In addition to its updated styling, this tester was equipped with the Blacktop package, which gives the sporty new flair a menacing edge. It had glossy black wheels (20-inchers) and mirrors, and blacked-out badges on the exterior. At the rear, it had dual exhaust with bright tips. Inside, out tester featured carbon fiber accents, paddle shifters and a trailer brake control. The Dodge Durango GT is still powered by the 3.6-liter Pentastar V6, producing 295 horsepower and 260 pound-feet of torque. It's available in rear- and all-wheel-drive configurations, and can tow up to 6,200 pounds. It shifts gears via an eight-speed automatic transmission. RWD models get 19 mpg city, 26 highway, and AWD models suffer one mpg across the board. Our brief drive reconfirmed what we already knew about the Durango. It's a fun SUV that feels macho yet comfortable. For a vehicle that size, it really is fun to drive, and Dodge did a great job of making it feel like a lifted Charger. It's got plenty of room for the whole family, but you won't have to check your soul at the door. Have a gander at the video above, and be on the lookout for more videos coming from our day at FCA's proving grounds.Related Video: