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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.

Dodge shows can-do attitude with grand Can'avan sculpture

There are lots of ways to celebrate an important birthday, and all of them are well deserved. You can throw a big party, buy yourself something nice, or - if you're the altruistic type - do something for others in need. The latter is how Chrysler has opted to mark the 30th anniversary of its Dodge Grand Caravan and Chrysler Town & Country.
Together with hunger-advocacy organization Canstruction, the Chrysler Foundation has built a full-scale replica of the Grand Caravan out of 30,000 food cans in the square at the corner of Yonge and Dundas in Toronto, a ways down the highway from where the real vans are built in Windsor. The sculpture was built over the course of 10 hours by 30 volunteers and was displayed earlier this week.
Now the installation is being taken down, and the cans of food are being donated to the Daily Bread Food Bank, which will assemble them into 2,000 food baskets to be distributed to those in need through its network of 200 food banks across the Canadian metropolis. Check out a neat time-lapse video of the build and the press release below.

What's the deal with Chrysler demanding colleges crush their Vipers? [w/video]

Students and teachers at a Washington community college are up in arms following an order from Chrysler that it must destroy the pre-production Dodge Viper that was donated to the school's automotive technology program ten years ago.
The Viper in question is said to be the fourth off the production line, based on its VIN, and has had its emissions controls disabled, allowing its ten-cylinder engine to produce 600 horsepower, according to a report from Yahoo! Autos. As one of the first Vipers ever produced, the school's AT instructors claim it could be worth $250,000 in a museum, while a local news report purports that Jay Leno once tried to purchase the car, but the sale was prevented by Chrysler.
As pointed out by our friends at Autobytel, though, there are a lot of things in this story that don't quite add up. Immediately noticeable from the news report embedded below - which shows the car at South Puget Sound Community College - is that the car in question is not a 1992 model. When the Viper went on sale in 1992, it was only available as an RT/10 with a (flimsy) soft top, like the red car shown above. But the car featured in the report from KING5 News (inset image) is clearly a hardtop Viper GTS, which didn't enter production until 1996. And even if, as reported by a local newspaper, the hardtop featured is a prototype, it doesn't explain the lack of another iconic feature of the first Vipers - their distinctive side pipes. This kind of pokes holes in the school's argument that this is the fourth Viper to ever roll down the line. At best, this appears to be a pre-production Viper GTS.