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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.

2015 Dodge Viper GTC available in 25 million no-cost combos with 1 Of 1 bespoke program

What's the one thing no car can have too much of? Here's a hint – it's not power. It's not efficiency, either, or technology, or even safety. It's exclusivity. It's one reason Rolls-Royce has become a legend building absolutely bespoke motor vehicles, and it's the reason Dodge, of all companies, is offering a new GTC trim level for its Viper supercar. Now, you might be asking what's so special and exclusive about a trim level? Well, in the Viper GTC's case, it gives owners access to a catalog of 8,000 shades of paint for the exterior, 24,000 "hand-painted" custom stripe patterns, 10 different wheel options, 16 interior trims and no fewer than six aerodynamic packages. That results in 25 million different configurations for the 645-horsepower snake. Most shockingly, the customization choices come at no additional cost on the GTC model. And it's only the start. Ordering a GTC will enroll customers in a unique VIP program called Viper Concierge, which according to Dodge, "offers an exclusive point of contact throughout the custom Viper build process." In other words, buyers will be given the means to stay right on top of their car's production, through the 140-to-160-hour painting process, which itself will be fully documented with pictures and through a mobile-friendly website, to the actual construction of their GTC. The Concierge process will start with the ordering stage, which will include Dodge sending customers a paint chip showing the owner's custom choosing, which they can confirm or refuse. Shortly thereafter, Dodge will send buyers a 1:18-scale "speed-form" replica in their chosen custom colors, once again to confirm or deny the build. Once the buyer's color and option selection is locked-in, that car becomes a one-of-one Viper for that year – no other buyer will be permitted to build a Viper to the same specifications. The concierge service also grants access to the Viper Ambassador Owner's Portal, where orderers can track their car's build process, receive weekly updates and share their excitement with (jealous) friends and family. And once the car is complete, it will be fitted with a custom dash plaque identifying its bespoke provenance – the owner can choose to have their name put on the badge, the car's nickname, or whatever they wish (Dodge will also ship each Viper with a second blank plate to include if the original owner sells the car).

Chrysler recalls 1.2 million Ram pickup trucks

Chrysler has announced that it will issue three separate recalls that will cover as many as 1.2 million Ram pickup trucks for "steering-system tie rods that may have been misaligned during assembly or steering-system service." The vast majority of these trucks were sold in the United States, though some trucks in Mexico, Canada or overseas will be called in, as well.
The largest of the three recalls covers an estimated 842,400 model-year 2003-2008 Ram 2500 and 3500 trucks. Two smaller campaigns will bring 294,000 model-year 2008-2012 Ram 2500 and 3500 pickups, chassis cabs and 2008 Ram 1500 4x4 Mega Cabs; plus 43,500 model-year 2008-2012 Ram 4500 and 5500 4x4 chassis cabs into the dealer to be checked and repaired if necessary.
This is a very large recall, and Chrysler says it is "casting the net wider than necessary to identify those vehicles that require repair." The automaker estimates that "as many as 726,000 may not need repair."