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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 restores Brass Monkey wheels to Challenger and Charger SRT Hellcat

For the first part of 2020, Dodge removed the option of its Devils Rim aluminum wheel design in Brass Monkey finish for the Hellcat-powered Challenger and Charger models. Mopar Insiders reports the wheels will return to the menu once Dodge starts production of its two muscle cars again, tidings to please forum members asking why they couldn't order the rims. The standard fit on the regular cars is a 20-inch Low Gloss Black Performance wheel, the options either a 20-inch Machined w/Granite Pocket wheel or a 20-inch Matte Vapor SRT aluminum wheel. On the widebody cars, standard fit is a 20-inch Carbon Black Aluminum wheel, one option being a 20-inch Warp Speed Granite wheel that's the same design as the Matte Vapor but with a different finish. The 20-inch Brass Monkeys are the second option on widebody versions of the Charger Hellcat and Hellcat Redeye, replacing the 20-inch Matte Vapor SRT Aluminum rim available on the non-widebody.   Those choices are on the Dodge configurator. At the time of writing, what's missing from the online tool are the Brass Monkey options for the standard Challengers and the Charger Hellcat Widedody models that MI says are coming. The wider versions of the Challenger Hellcat bolt on a set of 20-inchers that are 11 inches wide; we're told the standard cars will offer Brass Monkey rims in 20 x 9.5 inches. The Charger Hellcat only comes in two widebody versions, so it should get the 20x11-inch Brass Monkey wheels, but the options haven't showed up on the configurator. The sole choices at the moment are the Carbon Black Aluminum and Warp Speed Granite wheels. The other difference to note is that wheres the optional wheels on the Challenger all cost $1,095, the Charger's upgrades cost $1,295. Whenever production begins in Brampton, Ontario, again, the coveted wheels will bring another extra with them: Exterior badges done in a Black and Dark Bronze finish. Related Video:    

Dodge has released 500 million horsepower onto American roads since 2005

Dodge started using horsepower to measure sales when it launched its Power Dollars rebate program in August 2019. The clever campaign has paid off, and the company reached its goal of putting 500 million horsepower in the hands of enthusiasts two months ahead of schedule. The ongoing Power Dollars program rewards buyers who think big when it comes to their car's specifications sheet. Motorists in the market for a 2019 Challenger, a 2019 Charger, or a 2019 Durango can save $10 for every horsepower their future car's engine generates. There's no replacement for displacement here; the more horsepower you take on, the more discount you'll see when you sign the dotted line. The 797-horsepower Challenger Hellcat Redeye is eligible for a $7,970 discount, for example, while the tamer Charger SXT with a 3.6-liter, 292-horsepower V6 between its fenders costs $2,920 less. The Journey got excluded from the deal. When Dodge announced the program, it explained it had put 485 million horsepower in the hands of enthusiasts since bringing back the Charger and the Challenger in 2005 and 2008, respectively, and it hoped to break the 500 million threshold by the end of 2019. Mission accomplished. Putting horsepower in the bargain bin lured a surprising number of buyers into showrooms. Dodge notably sold 18,031 examples of the Challenger during the third quarter of 2019, a record-setting figure that represents a 21% increase over the same time period in 2018. The Challenger was more popular than the Ford Mustang and the Chevrolet Camaro, its main rivals. The Charger posted its best third quarter in 13 years with 26,060 sales, a 46% increase over the third quarter of 2019, which is remarkable considering its age. Finally, 2019 might end up being the Durango's best year since 2005. As of the third quarter, year-to-date sales are up 6% to 52,622. Enthusiasts who want to configure the Challenger, Charger, or Durango of their dreams need to act quickly, because Dodge will stop taking orders for 2019 model-year cars on October 23 — that's this Wednesday. Those willing to take home a car from a dealer's inventory will be able to claim the Power Dollars rebate until January 2, 2020.