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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.

2018 Jeep Wrangler four-cylinder fuel economy revealed

Fuel economy numbers for the 2018 Jeep Wrangler with the turbocharged 2.0-liter four-cylinder have finally been announced by the EPA. In the city, the two-door model gets 23 mpg, and the four-door Unlimited gets 22. Highway fuel economy for the two-door is 25 mpg and 24 for the four-door. Combined for the two-door and four-door is 24 and 22 respectively. These aren't Prius numbers, but they do make the four-cylinder Wrangler the most efficient version of the off-roader so far. The rest of the Wrangler range with V6 power gets 20 mpg combined, with the exception of the manual four-door, which gets 19. The most efficient V6 models in the city are the automatic models, which, regardless of length, get 18 mpg. On the highway, the best V6 is the manual two-door, which manages 25 mpg, and only loses 1 mpg in the city to the automatic. The question is, is the improved fuel economy worth the price premium of the four-cylinder? The automatic-only four-cylinder engine is an extra $1,000 over a V6 automatic, and $3,000 over a V6 manual. And when looking at the annual fuel cost estimates at fueleconomy.gov, you might only save $50 to $100 each year. The problem being that, while it's more efficient, it also demands premium fuel that the V6 doesn't. So it could be quite a while before the upfront cost is recouped. But if you want a Wrangler that's a little nicer to the planet, it's probably the way to go, plus you get an extra 35 pound-feet of torque over the V6, even if it means sacrificing nearly 20 horsepower. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Star Trek actor's death may be linked to Jeep shifter issue

The tragic death of Anton Yelchin on Sunday may have resulted from a known design flaw with his Jeep Grand Cherokee. The 27-year-old actor, best known for playing Pavel Chekov in the latest Star Trek movies, was reportedly crushed when his vehicle rolled backwards down the driveway in front of his house, pinning him against a brick pillar and metal gate. The 2014-15 Grand Cherokee was one of three models (alongside the Dodge Charger and Chrysler 300 sedans) that Fiat Chrysler recalled this past April due to roll-away risk. The vehicle was equipped with an unintuitive "e-shifter" that didn't deliver the usual tactile response of being shifted into position, leading to numerous drivers exiting the vehicle mistakenly thinking that it was in Park. The problem was reported to have resulted in 41 injuries – and now possibly Yelchin's death as well. The manufacturer stated at the time of the recall that "the vehicles involved in these events were inspected and no evidence of equipment failure was found." It determined that while the vehicle warned occupants if the driver's-side door was opened while the engine was running and the transmission not in the Park position, such measures may have been insufficient. Its remedy for the problem involved updating the vehicle software to better warn drivers in such an event, and changing the design for subsequent models. "Regarding the recall," an FCA spokesman told Autoblog, "I can confirm notices were mailed to affected customers. Included in those notices were tip sheets describing proper operation of the shifter. This supplemental information echoes the instructions in the owner's manual." Yelchin was born March 11, 1989, in St. Petersburg, Russia. His parents were a figure-skating pair, and defected to the United States when Anton was just six months old. In the prime of his career, Yelchin had several films currently in development, including Star Trek Beyond, set to reach theaters next month. His body was reportedly discovered by friends when he didn't show up for rehearsal. Related Video: