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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.

2019 Ram 1500 prices released: What pickup will cost, by trim

One of the final pieces of information about the 2019 Ram 1500, and one of the most important, is finally here: the price. A base model Ram Tradesman, which nets a V6, the smaller four-door cab, a 6-foot 4-inch bed and two-wheel drive, starts at $33,340 with destination charge. That's a a bit over $1,000 more than the cost of the same outgoing Ram 1500 Tradesman. But you'll also get new features such as the eTorque mild-hybrid system and a touch-screen infotainment system with Uconnect. At the other end of the spectrum, the top-rung Ram 1500 Limited Crew Cab 4X4 V8 now starts at $59,035, an increase of almost $4,400 over the old model. Although the base price of the most basic and the most opulent Ram 1500s have gone up, some other things have become cheaper. You won't have to pay as much to upgrade to a V8, for instance. The plain 5.7-liter V8 with its 395 horsepower is $255 cheaper now, costing $1,195. To get that engine with the eTorque system costs more at $1,995. The RamBox bed-side storage bins are $300 cheaper now at $995. The Rebel trim has a better entry-level price, too. The base version with the smaller cab, four-wheel drive (the only drivetrain available with the small cab) and V6 with eTorque starts at $46,340. That just slips under the $46,690 price of the outgoing base Rebel with two-wheel-drive, and is over $2,000 less than the old Rebel with four-wheel drive that started at $48,790. Of course, the outgoing model was only available with the larger "Crew Cab" four-door body. Adding that larger body to the new Rebel will probably offset the cost savings. Here's the entire 2019 Ram sheet of base prices by trim/configuration: Related Video:

2019 Ram ProMaster, ProMaster City vans lose the crosshair grille

Ram is updating its commercial van offerings with the 2019 Ram ProMaster and ProMaster City full-size and compact vans. They're very minor updates, mainly consisting of a new grille. The old crosshair versions are gone in favor of mesh grilles with the Ram logo in all caps. This brings them inline with the 2019 Ram 1500 pickup trucks. The compact ProMaster City doesn't get any other changes, but the big ProMaster sans-City gets some upgrades buyers may appreciate. The variety of van configurations has been expanded to include 136-inch wheelbase, low-roof options for the 2500 and 3500, and a high-roof 136-inch body for the 3500. With the current ProMaster, only 1500 models can be had with a low roof, and there are no 136-inch offerings for the 3500. View 7 Photos Ram has also increased payload capacities for each trim, with the 1500 now sitting at 4,000 pounds, the 2500 at 4,250, and the 3500 at 4,680. Towing capacity is also up, with a maximum weight of 6,800 pounds. The most a current generation van can tow is 5,100 pounds. All of this is done with the same 280-horsepower 3.6-liter V6 and six-speed automatic. One additional change to both the big ProMaster and little ProMaster City is pricing. Both vans see base price increases of $200. The ProMaster starts at $31,840, and the ProMaster City starts at $25,740 for the two-seat cargo van. The two-row wagon version is an extra $1,700. Featured Gallery 2019 Ram ProMaster Image Credit: Ram RAM Minivan/Van Commercial Vehicles ram promaster ram promaster city