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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 spy shot mega gallery

We've already seen the 2018 Jeep Wrangler in official shots from the automaker. But there were only three, and they showed off only two of the many trim levels we're sure will be offered. So, feast your eyes on this spy shot mega gallery, which puts on display both two- and four-door Wrangler models in Sport, Sahara, Rubicon, and Overland guises. There are more than 40 images here, so take your time before coming back to finish reading. Done? OK, good. There are a few interesting bits worth obsessing over, starting with the two-door Rubicon in black. Obviously, there's no front bumper on this prototype. We can't say for sure whether that's because it's been out testing in its natural habitat, but we can clearly see the potential for top-shelf approach angles. We also get a good look at the removable soft top, which has nice, big, open side windows without the diagonal strip of opaque vinyl cutting through. There are five different four-door Wrangler Unlimited models in this gallery (not including the Wranglers of the last slide that are shot from further away), in Sport, Sahara, and Rubicon trim levels. We see soft tops (with what we hope are preproduction rear windows that don't line up very well) and hard tops in both matte black and body color. Clearly, the hardtops have removable sections for an open-air experience without the hassle of completely pulling off the entire outer shell. Also note that the black Unlimited Overland (with silver highlights and mirrors) is an export-only trim. Finally, take a look at the interior shots at the end of the gallery. We're not sure which model we're looking at, but it's a bit incongruous to see a contrast-stitched and leather-covered dash with a small UConnect touchscreen surrounded by a bunch of hard plastic. Thankfully, we're sure that a larger LCD will be optional, along with a cool body-color dash panel and an additional screen between the two main gauges. The interior we see in this spy gallery shows the eight-speed automatic shifter sitting next to a console-mounted four-wheel-drive shift lever. We've heard that multiple 4x4 systems will be available, including one safe to engage for full-time four-wheel-drive. Related Video:

The Jeep Yuntu is a plug-in hybrid SUV just for China

The Shanghai Auto Show has been host to a heaping helping of hybrids this year, and we have yet one more to share with you. Jeep created this Yuntu SUV Concept, and it features a plug-in hybrid powertrain. Interestingly, Jeep has very little to say about it, and didn't even provide hypothetical performance figure, apparently because it's just a concept. About the only thing Jeep did tell us was that the Yuntu was designed with a focus on Chinese consumers' tastes, also citing that the SUV segment is the fastest growing in the country. While the design may have been targeted at Chinese buyers, we think the Yuntu would find fans in the US, too. It mixes cues from both the Compass and the Renegade. The roof treatment, with a thick, upright, body-colored D-pillar and black roof come right from the Renegade, as does the generally boxy aesthetic. From the Compass comes the slim seven-slot grille and horizontal headlights. The inside has no parallels to the current Jeep line. It's a light, airy place with plenty of pale woods. The dashboard is effectively all screens, and the few buttons and switches present have a unique copper finish. It's far more futuristic and modern than any Jeep on sale right now. As for what this Yuntu means for the Jeep brand, there are a few possibilities. It could simply be a styling exercise that indicates where Jeep is headed in the future. These future design cues could be applied either to China-specific versions of current vehicles, or they could also appear on vehicles in other markets such as the US. It's also entirely possible that this concept is a preview of a new SUV designed just for the Chinese market. Jeep could do this fairly easily and affordably by putting a toned-down version of the Yuntu's design on the Cherokee platform, which is already built by FCA's Chinese partner, GAC. This wouldn't be the first time a car company created an SUV just for the Chinese market, either. Mazda did it with the CX-4, so Jeep certainly could, too. Related Video: