2024 Ram 2500 Big Horn 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.

VW Golf R, Ram Power Wagon and Subaru Forester | Autoblog Podcast #591

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski and Road Test Editor Reese Counts. After some talk about sponges and other randomly received oddities, this episode is all about the cars we've been driving, including the new Subaru Forester, VW Golf R (which is going on hiatus), BMW M340i xDrive and Ram Power Wagon. Then, they take to the mailbag to help a listener pick a sporty new car in the "Spend My Money" segment. Autoblog Podcast #591 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Sponges, really? 2019 Subaru Forester Sport 2019 Volkswagen Golf R 2020 BMW M340i xDrive 2019 Ram 2500 Power Wagon Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:  

2019 Ram 1500 pickup shows its full face in spy photos

We're only a couple of weeks away from the 2019 Ram 1500 full-size pickup truck's public reveal at the Detroit Auto Show, but we're still getting little sneak peeks of the new Ram. In these spy photos, we get the last piece of the truck's front fascia puzzle, the badge. (UPDATE, January 2018: Here are the story and photos from the 2019 Ram's full reveal at the Detroit Auto Show.) As expected, the Ram logo fits in a little space between the split chrome bars in the middle of the grille. We're still not sure if this horizontal bar grille will be the only version or if there will be an assortment as there is on the current model. This iteration is the only version we've seen so far. These shots also show how this grille integrates nicely with the headlights. The turn signal LEDs line up with the gap in the chrome bar, the lower portion of the bar lines up with the lower running lights, and the upper portion lines up with the main headlight element. The rest of the truck will be fully revealed at the Detroit Auto Show. We know it will feature a 5.7-liter V8, which will probably be accompanied by at least a gasoline V6 if not a new version of the EcoDiesel V6, too. It may also be shown with the previously spied split tailgate. For additional peeks at the pickup, check out these previous spy shots, as well as our renderings. Related Video: