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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.

Star Trek actor's death may be linked to Jeep shifter issue

The tragic death of Anton Yelchin on Sunday may have resulted from a known design flaw with his Jeep Grand Cherokee. The 27-year-old actor, best known for playing Pavel Chekov in the latest Star Trek movies, was reportedly crushed when his vehicle rolled backwards down the driveway in front of his house, pinning him against a brick pillar and metal gate. The 2014-15 Grand Cherokee was one of three models (alongside the Dodge Charger and Chrysler 300 sedans) that Fiat Chrysler recalled this past April due to roll-away risk. The vehicle was equipped with an unintuitive "e-shifter" that didn't deliver the usual tactile response of being shifted into position, leading to numerous drivers exiting the vehicle mistakenly thinking that it was in Park. The problem was reported to have resulted in 41 injuries – and now possibly Yelchin's death as well. The manufacturer stated at the time of the recall that "the vehicles involved in these events were inspected and no evidence of equipment failure was found." It determined that while the vehicle warned occupants if the driver's-side door was opened while the engine was running and the transmission not in the Park position, such measures may have been insufficient. Its remedy for the problem involved updating the vehicle software to better warn drivers in such an event, and changing the design for subsequent models. "Regarding the recall," an FCA spokesman told Autoblog, "I can confirm notices were mailed to affected customers. Included in those notices were tip sheets describing proper operation of the shifter. This supplemental information echoes the instructions in the owner's manual." Yelchin was born March 11, 1989, in St. Petersburg, Russia. His parents were a figure-skating pair, and defected to the United States when Anton was just six months old. In the prime of his career, Yelchin had several films currently in development, including Star Trek Beyond, set to reach theaters next month. His body was reportedly discovered by friends when he didn't show up for rehearsal. Related Video:

Off-roader plows through a deep bog like it was nothing

The Facebook page Jeeps With Attitude runs a weekly series called Too Deep Tuesday wherein they post videos of off-roaders running their rigs through bogs and mud holes of surprising depth and coming out the other side soggy but relatively unscathed. This week's video, in which a driver extracts a buried vehicle from the muddiest bog in the land, is the perfect mix of nutso bravery and off-road know-how. The video starts with the vehicle already sunk to its hood and listing to starboard in a deep, sticky bog. Slowly but surely, the vehicle creeps forward through the mud, pushing a heavy bow wave of muck and debris in front of it. Unlike other recent videos where jeep drivers lost their rides in the water and destroyed their expensive toys, this driver keeps his cool and with a steady foot on the accelerator and the help of a winch and a convenient tree, eventually emerges triumphant. What did he do right? Well, using the vehicle's winch to help pull the rig out of the mud was the big thing. Also, he kept his cool and, once committed, never hesitated or deviated from his chosen path. Gunning it blindly or backing up in that mess would have meant almost certain death for that vehicle, a lesson that the aforementioned Jeep drivers learned the hard way. Related Video: News Source: Facebook Weird Car News Jeep Driving Off-Road Vehicles Videos