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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.

Ward's Automotive Ten Best Engines of 2014 dominated by diesels, turbos

With the Car and Driver Ten Best decided, the North American Car and Truck of the Year finalists announced and Cadillac, Ram and Subaru chalking up wins with Motor Trend, it's fair to say that the automotive awards season is in full swing. The next set of trophies to be handed out will be from Ward's Automotive, which has announced the winners of its 2014 10 Best Engines.
The latest contest was marked by the widespread emergence of diesel power and the continued success of turbocharged engines. There was even an electric motor on this year's list. In fact, only three of the ten winners were naturally aspirated and only two winners returned from last year.
"We weren't looking to throw the bums out, as they might say about an election. We were just really impressed with the flood of new powertrains," said Ward's Automotive Editor-in-Chief Drew Winter. Those new powertrains include the 83-kilowatt electric motor from the Fiat 500e, the 1.0-liter, EcoBoost three-cylinder from the Ford Fiesta and the 2.0-liter turbodiesel from the Chevrolet Cruze.

2015 Ram ProMaster City Tradesman First Drive [w/video]

From the perspective of a reviewer, there's a refreshing clarity to be hand when approaching a vehicle like a small commercial van. Where the inherent value equation for most vehicles is composed of both objective facts (price, fuel economy), and subjective opinions (looks, emotional response while driving), the reckoning of something like the new Ram ProMaster City is more straightforward. The light commercial van segment in the US has seen a remodel over the last half-decade, moving from paneled-over minivans to the versatile, economical, European-style boxes on wheels you see with increasing frequency today. Ford, Nissan and Chevrolet are all players here (though Chevy's City Express is essentially a rebadged version of Nissan's NV200), and though Ram's entry could be seen as late to the party, it also matches up very nicely in many of those straightforward areas of measure. Kindly, Ram brought along both the Nissan and the Ford for us to test alongside its new product, so we could get firsthand comparative impressions. The 2015 ProMaster City is roomier, more powerful and more maneuverable than its competition, though it trades those advantages for a higher price and a thirstier engine around town. We headed down to Texas where, between breaks for tacos and Topo Chicos, our goal was to see if Ram had created the new best box van in the US. Based on the already successful Fiat Doblo van from Europe, the baby ProMaster's visual transformation after its continental hop isn't radical. Ram has fitted a crosshair grille, new headlights and taillights, but largely the curvaceous, nose-forward styling remains the same. As we mentioned at the top: style is going to be very low on this list of priorities for a buyer of light commercial vans. Still, we'd rate the City as mid-pack for the options in the US; more attractive than the Nissan/Chevy twins and less so than the crisp Ford Transit Connect. (Though the optional five-spoke wheels of our test vehicle make it seem downright sporty in this group). Open the driver's side door and slide into the almost totally flat front seat, and any notion of "style" goes right out the window. Surfaces are almost exclusively black and gray, with workaday textures and frustratingly easy-to-scratch-plastics. This is a functional space though; trays, cubbies, cupholders and bins are far more numerous than you'd expect from a compact, two-seat cabin.