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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.

2019 Ram 1500 pickup spotted without the classic crosshairs

Ram has done a good job of hiding its next-generation trucks from the public, but one of our spy photographers finally glimpsed the pickup with very little camouflage. One truck was even wearing just its factory paint job. From what we can see, the 2019 Ram pickup will be a big departure from the current generation. (UPDATE, January 2018: Here are the story and photos from the 2019 Ram's full reveal at the Detroit Auto Show.) Up front are the most significant changes. Ram trucks since the mid-'90s have been distinguished by their big-rig looks that consisted of low mounted headlights, and a tall, proud grille. That grille was also made all the more prominent by how the middle of the hood met the top of the grille, while the sides of the hood and the fenders dipped down toward the headlights. This traditional look has mostly disappeared. The headlights have been raised up to the top of the grille opening. Now the grille drops below the lights. There is still a hint of the old style in the hood, but the look is very different. That hood and the front bumper also are more sculpted and detailed to emphasize the truck's toughness, and the hood now features a badge with the model of truck and its engine. The dark red truck in the photos has a 5.7-liter V8. The grille appears to be missing the classic crosshairs, too, and instead there's just one horizontal bar. It's possible this is just for this trim level, since the current Ram has a variety of grilles sans crosshairs. Moving around the truck, the changes are less radical. The Ram's flanks are still impressively clean and uncluttered, featuring simple, organic curves. The taillights are more detailed now, and the turn signals and reverse lights have little swoops in them. The tailgate is very clean, too, and the various holes in the back indicate that there will be no shortage of badging and garnish options at the rear. Expect to see all the details in the near future, in time for the 2019 model year. Related Video:

Ram 1500 Lone Star revealed: It's what they call 'Big Horn' in Texas

How important is Texas to the full-size truck market? Well, it gets its very own trim level. The 2019 Ram 1500 Lone Star was announced today at the Dallas Auto Show, making official what had always been assumed: that the Texas-only trim level would make its return on the latest Ram truck. If you should live in one of the other 49 states or Canada, don't feel too left out. The Lone Star is effectively just the Big Horn trim level with a different name and unique "Lone Star" badge. Officially, the feature list has it as a package exclusively available on the Big Horn. Be it Lone Star or Big Horn, the trim level exists above the Tradesman and fuel economy-focused HFE. The Ram SLT is no longer available. As the first trim level not strictly intended as a work truck, these more "civilian" oriented trims have chromed exterior trim (versus black plastic), nicer interior finishings (including a leather-wrapped wheel and cloth upholstery replacing vinyl) and a vast increase in available options. Realistically, most Ram buyers start their shopping trip at the Lone Star/Big Horn aisle. Like every 2019 Ram, the Lone Star will hit dealerships from El Paso to Beaumont in the first quarter of 2018, or within the coming months. It'll be built in Sterling Heights, Mich. Related Video: Featured Gallery 2019 Ram 1500 Lone Star News Source: Ram RAM Truck