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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 Dart falls short of Consumer Reports Recommended, Caddy XTS and Lincoln MKS, too

The Dodge Dart, Cadillac XTS and Lincoln MKS all failed to earn a "Recommended" rating from Consumer Reports. When it came to the compact Dart, the organization's testers thought the vehicle offered a quiet cabin, solid-feeling chassis and nimble suspension, but the new model ultimately fell short of the coveted rating due to powertrain issues. The institute's reviewers found the base 2.0-liter four-cylinder engine to be underpowered and noted "drivability issues" when the available turbocharged 1.4-liter four was paired with the optional dual-clutch transmission (some of our editors disliked it paired with the six-speed manual). CR also dinged the latter powerplant for sounding "raspy." For what it's worth, we think the forced-induction engine offers an excellent and playful exhaust note, but that's just us.
As for the XTS, CR lauded the car for its luxurious cabin, but the vehicle's experience was dulled by its finicky CUE infotainment interface. Overall, the big Cadillac scored much higher than its cross-town rival from Lincoln. While testers found the American luxury sedan to offer a quiet ride and quality fit and finish, they felt the MKS delivered a "cramped driving position, ungainly handling, uncomposed ride, and limited visibility." Ouch. At the end of the day, both cars fell short of rivals from Japan, Germany and Korea. Check out the full press release below with more details, along with CR's musings on the Chevrolet Spark and Lexus ES.

FCA issues recall for 300k Dodge Chargers over airbag sensor

Fiat Chrysler Automobiles has issued another recall, this time for the Dodge Charger. The issue stems from an overly sensitive control module that could deploy the side-curtain airbag and seatbelt pretensioner if the door is kicked or slammed too hard. The recall affects certain Charger sedans from the 2011-2014 model years, specifically those manufactured between May 6, 2010, and June 5, 2014. All told, that amounts to an estimated 322,078 units, including 284,153 in the United States, another 13,169 in Canada, 2,484 in Mexico, and 22,272 overseas. Owners of those vehicles will be asked to bring their vehicles in to their local dealers to have the Occupant Restraint Control module recalibrated, and are being advised in the meantime to "exercise caution when closing doors." If this issue sounds familiar, that's because the automaker issued a similar recall for Ram trucks just last week, affecting over 667,000 four-door pickups in the United States alone. Following a further investigation into its passenger cars, FCA found a similar problem with the Charger, whose door design mandated specific calibration of the module in question for that model. The company says it is aware of three minor injuries potentially related to the issue, but no accidents. This campaign is just the latest in a string of recall-related issues to have emerged from Auburn Hills recently. The Ram truck recall was issued in tandem with another airbag-related recall for a further million pickups. Prior to that it called in another 1.4 million vehicles to update their infotainment system software due to a security issue. Another 350,000 Dodge Journeys were called in before that to have their engine covers secured. The National Highway Traffic Safety Administration is expected to issue the company a massive hundred-million-dollar fine for failing to follow proper procedures related to safety and recall issues. Meanwhile, another NHTSA investigation that could have affected 4.7 million units was closed with no further action deemed necessary. And an appeal court judge in Georgia reduced the damages the company will be ordered to pay the family of a child who died in a fire in a Jeep Grand Cherokee. Statement: Occupant Restraint Control Module August 1, 2015 , Auburn Hills, Mich. - FCA US LLC is conducting a voluntary safety recall to recalibrate control modules on approximately 284,153 U.S.-market sedans to prevent inadvertent side-curtain air-bag and seatbelt pre-tensioner deployment.