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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.

Man crashes car through store window, says he needs a beer

Police body cameras captured a chaotic scene at a Cleveland-area convenience store after a man drove his car through the front of the store and barricaded himself in a walk-in cooler. According to WJW, the Convenience Mart in Rocky River, Ohio, had just closed in the early hours of May 7 when a black Dodge Challenger barreled through the security bollards at around 40 miles per hour and crashed through the front window. Police arrived to find the car parked in the store with its hazards on, the store clerk trapped beneath debris, and no driver. The clerk told officers the driver got out, told the clerk that he needed a beer, then wandered into the walk-in cooler. Officers found the driver barricaded inside the cooler. A tense standoff ensued with the agitated, confused man, who dared the cops to shoot him. Police learned he was suffering PTSD-related issues from his military service and job with the Federal Protective Service. "The conversation he was having with the police was deranged, consistent with somebody who was going through a mental crisis," RRPD Chief Kelly Stillman told WJW. Eventually, an officer was able to use a taser on the man, who put up a fight but was eventually subdued. He faces charges that include DUI and reckless driving. Thankfully, the store clerk escaped relatively unscathed. His life was saved by a deli case that absorbed the impact of the car and sheltered him from falling debris. "Had the car been over a couple more feet, he was hurt, it could have been serious bodily injury, even possibly death. I mean that's a four, five thousand pound automobile coming at 30, 40 miles an hour. He was lucky, very lucky," said Chief Stillman. Related Video News Source: WJW Auto News Dodge cleveland challenger

Dodge Demon test mule spotted wearing unusual camouflage

The Dodge Demon apparently refuses to stay under wraps. The endless rollout of teasers continues each Thursday, but thanks to both Vin Diesel and our trusty spy photographer we have a whole suite of photos that show a nearly complete car in the flesh. This car appears to have been hiding in plain sight, as some of these photos were captured in the Detroit area. The car or cars in these photos is far less polished than the one shown in all of Dodge's teasers. The Air Grabber hood is unpainted, though it does come with some awesome hood pins. The same goes for the bolt-on fenders, as other pictures show a cleaner integration of the Demon's widebody modification. Despite the large Nitto logo on the top of the windshield, the cars in these photos are both wearing a set of Pirelli PZero All-season Plus tires on non-Demon wheels. It's as if drag radials aren't the best choice for winter driving. This car is fitted with two-piece Brembo brakes, but there's no telling if they're different than the standard Hellcat's. The decals on the side of the car may give clues to some of the Demon's equipment, but based on the LB Performance - commonly known as Liberty Walk- logo, the decals are likely more of a ruse than anything else. Liberty walk is famous in the tuning community for big, bolt-on body kits. The looks perfectly suit these test cars, though Borla exhaust and a Hurst shifter would be a wonderful addition to the Demon. Outside of that, there isn't much new to glean from these photos. Most of our questions about the Demon (horsepower, gearing, price) can't be had from pictures. Look for more news each Thursday in the lead up to the car's debut in New York in April. Related Video: Featured Gallery Dodge Demon Spy Shots View 14 Photos Related Gallery Dodge Demon Teasers View 17 Photos Image Credit: KGP Photography Spy Photos Dodge Coupe dodge hellcat