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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.

Will Nissan's Cummins deal upset Ram's marketing mojo? [w/poll]

Ram has used Cummins engines in its heavy duty trucks since 1989, and it is the only pickup truck brand to use products from the Indiana-based engine maker. With the announcement that the next Nissan Titan will also use a Cummins powerplant, and a Nissan spokesman having already said "We will definitely leverage the Cummins brand name," a piece in Automotive News wonders whether the deal will affect the way Ram markets its tie-up with Cummins.
The question really is, how intense is this competition? While it is the first time that trucks from two different brands have used Cummins engines, they'll be two different engines in two different kinds of trucks; Nissan is going to put a 5.0-liter turbodiesel in a non-heavy-duty Titan, Ram only uses its 6.7-liter, inline six-cylinder turbodiesel in heavy-duty offerings. The diesel that Ram will offer in its light-duty, half-ton 1500 is a 3.0-liter V6 EcoDiesel with 240 horsepower and 420 pound-feet of torque - compared to about 300 hp and 550 lb-ft expected from the Titan's Cummins - and its marketing so far has focused on the fuel economy gains.
If Nissan was going to prove its commitment to the segment, it had to do something compelling. If we're talking about sales competition between Ram and Nissan, Ram has sold 201,633 trucks as of July this year, up 24.2 percent, 31,314 of those sales coming last month; Nissan has sold 10,020 Titans through the end of July, down 21.1 percent, and just 1,168 in July itself. Nissan's new truck boss - who hopped there from Ram - said that buyers have asked for a powerful turbodiesel in something other than a heavy duty pickup, and from what we've read on various comment boards, the pickup truck crowd is excited about Nissan's move.

2021 Ram 1500 Infotainment Driveway Test | Bigger IS better

The 2021 Ram 1500 comes standard with a simple 5-inch touchscreen, while the 8.4-inch version found on most versions as standard equipment is the same user-friendly unit found elsewhere in the Chrysler/Dodge/Jeep/Ram line up. Unlike all those other brands in the North American Stellantis empire (ugh), however, the Ram offers a unique take on the Uconnect: a 12-inch vertically oriented touchscreen. While other cars offer similarly tall screens, such as the Subaru Outback, Ford Explorer and every Volvo, none do such an exceptional job of taking advantage of the orientation and size. The same can be said in comparison to the Ford F-150's new jumbo touchscreen.  My full review of the system is in video form and can be watched above. I've also included a few pictures below to dig deeper and touch on some areas I missed in the video. Here's what the screen looks like when you just want a colossal map. Sadly, the map graphics are pretty low-fi and Garminy.  As I mention in the video, one of my favorite things about this system is the ability to choose what is displayed on top and what's displayed on the bottom. That the Ram's screen is basically the size of two normal screen definitely helps in this regard. I especially like that you can see Apple CarPlay at the same time as radio controls.  I also like how prominently placed and easily reached the radio preset buttons are in this full-screen media layout (utilizing the full-color logos of satellite radio stations is a nice touch, too).  One thing I didn't touch on in the video is the redundant control knob that's appreciated for scanning playlists or contacts. There are USB-A and USB-C ports up front. Note, however, that there are really only two outlets — each is just split between the different formats and you can only use one at a time. There's another unit like this in the back seat, as well as another USB-A port under the center armrest. This is a clever bit of design. The wireless charger is on the left and utilizes a holster-like element to press your phone against it, thus saving space versus the usual flat pad. That holster then extends to the right to hold in place phones without wirelessly charging them.  This and so many other thoughtful details are big reasons why the Ram 1500 interior has been so universally lauded. It's not just fancy leather, better-than-average plastics or even that gigantic "hey look at me!" screen. There's also tons of substance.