07 Jeep Grand Cherokee 3.0lturbo Diesel Limited Sport Utility 4-door No Reserve 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.

Jeep still working to improve Cherokee's 9-speed auto

Fiat Chrysler is hoping an upcoming software update will stem the tide of consumer complaints surrounding its nine-speed automatic transmission. Owners of the 2014 Jeep Cherokee have reported a number of problems on the National Highway Traffic Safety Administration's SaferCar.gov website, since the new model and its troubled gearbox arrived way back in October 2013. The software update is "intended to keep the vehicle performing as intended, and to prevent durability issues from occurring in the future," an FCA spokesperson told Automotive News, and will be available to owners of both the 2014 to 2015 Jeep Cherokee and the 2015 Chrysler 200, which also uses the 9AT. While FCA will be notifying consumers of the update, owners can also request the software reflash if they happen into their dealer before then. Despite the widely documented problems with the transmission, the only complaints on NHTSA's website relate to the 2014 Cherokee – neither the 2015 Jeep nor the 200 have received any complaints. That bodes well as FCA prepares to begin deliveries of the 2015 Jeep Renegade and launch the Fiat 500X, both of which pair the 9AT with the 2.4-liter Tigershark four-cylinder. "We have had to do an inordinate amount of intervention on that transmission, surely beyond what any of us had forecast," FCA CEO Sergio Marchionne told Automotive News. "There are things that we have done – that we continue to do. Our proactive customer care intervention has actually increased in intensity on these vehicles in 2014, especially in the second half." What's fascinating about the 9AT's problems are that they haven't been the fault of manufacturer ZF, but have related to software that wasn't "mature" and had "teething problems," Marchionne has said previously, AN reports. With the lack of criticism for the 9AT in 2015 models and this pending software update, though, here's hoping that FCA has finally figured out its fuel-sipping gearbox. Related Video:

NHTSA boss Strickland weighs in on Jeep recall fracas

Adding yet another chapter to the ongoing Jeep recall story, the National Highway Traffic Safety Administration (NHTSA) head David Strickland has gone on record to defend the government's request that Chrysler recall 2.7 million out-of-production Jeep Grand Cherokee and Jeep Liberty vehicles after the agency investigated fiery rear-end collisions that have reportedly killed at least 51 people over the years. In statements made to The Detroit News, Strickland said, "We felt very strongly that the process that we undertook and the findings that we made and ... we made the decision to issue a recall request. We do not take that very lightly." The top US auto safety regulator stopped short of telling owners to park their cars until the automaker takes action. "They can make their own risk assessment and their own choices," he said.
Chrysler does not intend to recall the models, insisting the "vehicles met and exceeded all applicable requirements of the Federal Motor Vehicle Safety Standards, including FMVSS 301, pertaining to fuel-system integrity" when they were manufactured and sold. "The company does not agree with NHTSA's conclusions and does not intend to recall the vehicles cited in the investigation. The subject vehicles are safe and are not defective," Chrysler announced last week in a statement. "We believe NHTSA's initial conclusions are based on an incomplete analysis of the underlying data, and we are committed to continue working with the agency to resolve this disagreement."
Legally, Chrysler has until June 18 to formally respond to NHTSA's request. If the automaker does not take action, NHTSA is expected to issue a formal finding and seek a recall.