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Dodge closes Caravan order books at the end of this month

After being introduced as the Dodge Caravan in 1983, after debuting a long wheelbase Grand Caravan in 1987, after entering its fifth generation in 2007 and going almost unchanged since then to become the oldest minivan in the segment, after being publicly sent to the slaughterhouse in 2011, again in 2013, and again in 2015 before being pardoned thrice by the automotive governor, this month it's over for good for the best-selling Dodge and best-selling minivan in the U.S. and Canada. At least, according to Mopar Insiders, which credits dealer sources for the news that "the end of the month" will be a car shopper's last chance to order the Dodge Grand Caravan in the states that don't adhere to California emissions. Since the Grand Caravan's 3.6-liter V6 can't clear CARB mandates, Dodge pulled the model from the 13 so-called ZEV states in March this year.  Last summer, an analyst at AutoForecast Solutions told Automotive News that Dodge would cease Grand Caravan production at the Windsor Assembly Plant in Ontario, Canada in May this year. The brief reprieve is said to be related to the coronavirus standstill, Fiat Chrysler not alone in revising its plans to make up for two months of lost production. The new 2020 Chrysler Voyager is the official replacement for the Dodge, being a de-contented Pacifica that returns an old Chrysler nameplate to circulation and is built in the same plant as the Pacifica and Grand Caravan. The Grand Caravan's numbers have come down this year, but Dodge still sold a strong 24,931 units through the first quarter of the year; the kid-hauler has sold less than 100,000 units in a year in the U.S. only twice since 1985, topping six figures for the last four years. In 35 years on sale here, the minivan has hurdled the 200,000-unit marker 19 times. With the order books open until the end of the month and Windsor plant working a single shift and still finding its feet, Grand Caravans will continue to trickle off the lines after May, but not for long. 

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.

UAW workers strike at Stellantis casting plant in Indiana

DETROIT — United Auto Workers union members went on strike Saturday at the Stellantis casting plant in Indiana, citing health and safety issues including the company's alleged refusal to repair and replace the plantÂ’s air conditioning and heating systems. The 35-acre plant in Kokomo makes parts used in the powertrains of Chrysler, Dodge, Jeep and RAM vehicles and a long-term strike could affect vehicle assembly lines across North America. Stellantis says production had not been scheduled for this weekend and it hoped to resume negotiations as soon as possible on a contract with striking UAW Local 1166. In a statement, Stellantis said it was committed “to providing a safe and healthy work environment for all employees. After bargaining in good faith for two days and presenting an offer we believed addressed the unionÂ’s concerns, we are disappointed by the UAWÂ’s decision to walk out.” The 1,200-worker plant, Kokomo Casting, is the world's largest die cast facility, according to Stellantis. It makes aluminum parts for components including transmissions and engine blocks. The UAW local complained in a statement that Stellantis “claims it has no money to meet its membership's basic needs while ”making record profits and investing billions in a new battery plant across the street." UAW local president David Willis did not immediately return a phone call seeking comment. A person who answered the phone at union offices said he was preparing for a resumption in negotiations. The casting plant is to be retooled to produce engine blocks for hybrid-electric vehicles. In May, Stellantis announced a $2.5 billion joint venture with Samsung to build an electric vehicle battery factory in Kokomo that is to employ 1,400 workers. Stellantis, formed last year with the merger of Fiat Chrysler and FranceÂ’s PSA Peugeot, had said it would build two electric vehicle battery factories in North America. The other is slated for Windsor, Ontario. Plants/Manufacturing UAW/Unions Chrysler Dodge Jeep RAM