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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.

These three automotive Lego kits deserve your suppoort

Lego has been quite good to car enthusiasts over the past few years. We've seen traditional kits for the classic VW Microbus, Mini Cooper, and the Caterham 620R, as well as an elaborate Technic kit for the 911 GT3 RS. But why stop there? The Lego Ideas page, which allows users to submit ideas with the chance to see their kits reach production, has many more cool car kits we'd love to see. Check them out below, and be sure to log on to vote for them. If a submission hits 10,000 votes, it is considered for production. That's how we got that Caterham kit, so it's worth your time to show your support. Peugeot 205 Turbo 16 This is a submission aimed at becoming one of Lego's Speed Champions kits. These are very small mini-figure scale car models, and the series has included the Ford GT, Audi R18 Le Mans racer, and more. This kit features a tiny version of the Peugeot 205 Turbo 16, a Group B rally racer that gave Peugeot World Rally Championship titles two years in a row. The kit has a well-executed version of the car and its massive rear spoiler on the hatch. It also comes with a big dirt crest for it to fly over, along with amazed spectators on the sidelines. Porsche 911 Turbo 930 We love the GT3 RS Lego kit, but we think it's a little lonely as the only Porsche kit available. Such an impressive Porsche deserves an impressive companion, like this 911 Turbo. It's the 930 version, which is arguably the most famous classic 911 with its turbocharged power, whale-tail wing, and scary driving dynamics thanks to considerable turbo lag and rear-engine handling characteristics. This model is quite large at 1:10 scale, and comes with a detailed interior and exterior. The best part is the remote-control components underneath that allow the car to be driven. Jeep Wrangler JK Moving off the beaten path again, we have this highly detailed Wrangler kit. Actually, we have two kits, as the creator designed both two-door and four-door versions. They both feature removable hard tops, detailed interiors, and big tires. They also come with an assortment of off-road accessories such as auxiliary lights, an off-road jack, winch, gas can, roof rack, and off-road bumper. You can also find various fluid reservoirs and engine details under the opening hood. Related Video: Image Credit: AbFab1974 / Lego Ideas, brickmasterno1 / Lego Ideas, RREYES77 / Lego Ideas Auto News Toys/Games Jeep Porsche Peugeot Lego

Jeep Renegade and Fiat 500X finally on the way to dealers

After a brief pause, the Jeep Renegade and Fiat 500X are on their way to dealers again. While initially reported as a software bug, the issue had nothing to do with the models themselves. According to a statement from FCA US to Autoblog, the "vehicles were built with an atypical Vehicle Identification Number that may not be recognized as valid by some computer systems." That problem has now been fixed. FCA US held the compact crossovers back from dealers until the company could rectify the bug. If the CUVs had been delivered, there would have been difficulty registering the vehicles, according to Automotive News. Before discovering the situation, about 20 of these Renegades were sold to customers. FCA CEO Sergio Marchionne originally discussed the predicament in late May. "I'm having a very bad engineering day," he said. "It's a combination of attributes of that vehicle that is making my life horrible." While the boss predicted the problem would be fixed as late as mid-June, the company apparently got things working much quicker than that. Related Video: FCA US Statement A limited number of 2015 Jeep Renegade and 2016 Fiat 500X vehicles were built with an atypical Vehicle Identification Number (VIN) that may not be recognized as valid by some computer systems. This VIN issue has been resolved. FCA US has been working with governmental agencies, insurers and financial institutions with whom customers may interact to ensure successful registration, financing and insurance coverage. Renegade and 500X vehicles are being shipped and are in stock at dealerships for purchase. The VIN issue is entirely separate from the operation of the vehicle.