2012 Ram 2500 Laramie 4wd Crew Cab Laramie Leather Navigation 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.

Ram issues recall on heavy-duty pickup transfer cases

UPDATE: A previous version of this story said the issue only occurred in four-wheel drive. This is incorrect – issues are only exhibited in two-wheel drive. The Basics: Ram is recalling 930 3500, 4500, and 5500 heavy-duty pickups from model year 2016. The affected 3500s were built between July 24, 2015 and January 7, 2016, while the larger 4500/5500 trucks were screwed together between July 24, 2015 and October 8, 2015. The Problem: According to the official NHTSA bulletin, the "transfer case may have been manufactured with a misshapen main output shaft, creating voids that may cause a shaft fracture." If this happens, the vehicle could lose power. The driver might not be able to select park, either. Injuries/Deaths: FCA isn't aware of any injuries or deaths related to the issue. The Fix: Dealerships will replace the transfer case on affected trucks. If you own one: You probably don't. According to FCA spokesman Eric Mayne, dealers haven't delivered the majority of the affected trucks to customers. But if you really do own one, Mayne added that the issue only occurs in two-wheel drive. We'd advise keeping it in four-wheel drive until you can report to your local dealer. FCA kicked the recall off on August 10, so expect a mailed notification soon. Related Video:

Ram introduces 5th and final 'Built to Serve' edition

Ram introduced the fifth and final variant of its "Built to Serve" pickup series Tuesday. Finished in Spitfire (orange) or Bright White, this final version honors the Coast Guard.  "We owe a huge debt of gratitude to our armed forces and the brave men and women who serve them. These 'Built to Serve' models are just one way we honor those who have selflessly served our country," said Mike Koval Jr., Ram Brand Chief Executive Officer – Stellantis. "Whether civilian or military, Ram truck owners are very familiar with this adage as itÂ’s something we strive to build into every truck and van we produce." The trucks were originally slated to roll out in increments between Veterans Day 2019 and 2020, but it appears the release cadence may have been interrupted slightly by the many calamities of the past year. Each of the five comes in one of two special colors chosen to "evoke the spirit, the mission and history of that service," and a limited build number. These are the final of 10,000 (1,000 more than Ram initially planned) "Built to Serve" editions divvied up so that each branch gets two appropriate color choices out of 10 total: Gator (1,000 units) and Diamond Black (1,000); Ceramic Gray (1,000) and Patriot Blue (1,000); Anvil (1,250) and Billet Silver (1,500); Tank (1,000) and Flame Red (1,000); and Spitfire (500) and Bright White (750).  Available on every body style and powertrain, a Built to Serve package costs $2,795. Every truck comes with the 4x4 Off-Road Group, which bundles features like all-terrain tires, an electronic-locking rear axle, hill descent control, tow hooks, and four thick skid plates. They're easy to spot thanks to their prominent rear quarter panel decals. Cosmetic upgrades include an all-black grille and surround, black badges, side steps, black four-inch exhaust tips, body-colored wheel arch trim, and 20-inch wheels finished in Technical Gray.  Ram has used the series to help bring more attention to a volunteer initiative the automaker has run since 2015, not-coincidentally called Built to Serve.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.