2013 Chrysler 300 C Repairable Damage Clear Title Rebuildable Damage 25% 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.

What will the next Presidential limo look like?

With recent news that the Secret Service has begun soliciting proposals for a new armored limousine, we've been wondering what the next presidential limo might look like. The current machine, nicknamed "The Beast", has a design based on a car that's no longer sold: the Cadillac DTS. If General Motors gets the job again, which wouldn't be a surprise considering the government still owns a chunk of the company, the next limo's shape would likely resemble the new XTS (below, left). But Cadillac hasn't always been the go-to car company for presidential whips.
Lincoln has actually provided far more presidential limousines throughout history than Cadillac. In fact, the first car modified for Commander-in-Chief-carrying duty was a 1939 Lincoln K-Series called "Sunshine Special" used by Franklin D. Roosevelt, and the last Lincoln used by a president was a 1989 Town Car ordered for George H.W. Bush. If President Obama wanted a Lincoln today, it would likely be an amalgam of the MKS sedan and MKT crossover, as illustrated above.
And what about Chrysler? The only record we could find of a President favoring the Pentastar is Nixon, who reportedly ordered two limos from the company during his administration in the '70s, and then another one, known today as the "K-Car limo," in the '80s after he left office. Obama, however, has a personal - if modest - connection to Chryslers, having owned a 300 himself before he took office. A 300-based Beast (above, right) would certainly earn the U.S. some style points.

GM, Chrysler bailouts saved 2.6 million jobs

The Center for Automotive Research (CAR) has been studying the effects of the General Motors and Chrysler bailouts in 2009. Now that the US Treasury has officially sold off the rest of its stake in GM (and Chrysler has already paid back its loan), CAR has released its study on the effects of the bailout with this concluding note: "CAR is confident that in the years ahead, this peacetime intervention in the private sector by the US government will be seen as one of the most successful in US economic history."
Big words, for sure, but there's plenty of evidence to back up the claim. Bailing out GM alone saved 1.2-million jobs. If both GM and Chrysler hadn't been bailed out, US employment would have been reduced by 2.631-million jobs in 2009 and another 1.519-million jobs in 2010, according to the study. If both automakers were allowed to fail, personal income in the US would have decreased by $173.5 billion in 2009 and $110.9 billion in 2010. Instead, the study found that $284.4 billion of personal income was saved by the bailouts.