2001 Ferrari 360 Modena Spider * Fully Loaded / Super Clean / Fully Serviced * on 2040-cars

Auto blog

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.

Ferrari 612 Scaglietti gets the shooting brake treatment

As much as we love shooting brakes, since they're basically two-door wagons, the world clearly isn't willing to buy them. Most remain concepts or just designs. But someone took up Dutch coachbuilder Vandenbrink on its design for a Ferrari 612 Scaglietti shooting brake. The company finished the car this year, and the results are impressive. The shooting brake's roof fits the existing roofline of the Ferrari well, and the car's signature wide haunches haven't been hidden. The hatchback also looks like Ferrari included it from the beginning, making the car look like a precursor to the FF and GTC4Lusso. The skylights in the roof are also fascinating, and they surely make the rear seats less claustrophobic. Vandenbrink's choice of the 612 Scaglietti is a good one, too, even if it was partly dictated by the fact the company penned this design over a decade ago. It's a classic grand touring car designed to be fast but comfortable. Its large size, particularly its prominent prow, suits a long-roof design, too. The one part we slightly question are the rear pillars, which even with some creases to break them up, look a bit large and out of place. This is currently the only example of the 612 shooting brake, but Vandenbrink is happy to build additional cars on request. The company says it will work with buyers every step of the way to make sure their example is customized exactly as they wish, from the paint to the equipment. Vandenbrink even suggests it could make one geared toward horse riding or falconry. There's no price for the vehicle, though, which is probably due to the fact that each one will be custom ordered and the cost will vary. And this is undoubtedly a car you can't afford if you have to ask the price. Vandenbrink is also happy to create one of a few other sports cars, such as a roadster version of the 599 GTB Fiorano. All you have to do is ask and bring tons of money.

Autoblog Podcast #397

Episode #397 of the Autoblog Podcast is here, and this week, Dan Roth, Steven Ewing, and Seyth Miersma talk about the leadership change at Ferrari, the Mercedes-AMG GT, and we give a report on the Long-Term Garage. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening!
Autoblog Podcast #397:
Topics: