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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 prototype gives us better glimpse of grille

Though we've managed to see most of the 2019 Ram 1500 from previous spy shots, we're still discovering new details here and there in spy photos. The latest batch shown above feature a truck with camouflage that covers most of the body, but curiously leaves the grille practically bare. The grille appears to be a version of what we saw on the nearly uncovered example from a few months ago. This time, that central bar is uncovered. In some ways, it looks like a sleeker version of the grille found on current Laramie Rams; the holes on either side of the emblem area are slimmed way down, and fit a single line. We can also see that those holes line up with the turn signal/daytime running light elements in the headlights. If you're not a fan of this new grille, the good news is that there will probably be a variety of different designs available, just as there are on current Rams. There aren't many other details to glean from this prototype, though. It appears to be the longer of the four-door models and has an impressive amount of glass area. The tailgate is fully covered, so we can't tell if this has a conventional drop-down gate or the split version we've seen on another prototype. We should know much more in about a month when the Ram 1500 is expected to appear at the 2018 Detroit Auto Show. For more about the Ram including renderings of the final truck, check out our post on what we know so far. Related Video:

2019 Ram 1500 shows chrome grille and more production parts

We've seen the 2019 Ram 1500 running around in camouflage a few times already. This time around, we get a good look at some more production parts. This set of spy photos shows a production-ready chrome grille up front, with chrome wheels to match. The shots also give a peek at the Ram's tow mirrors. We've seen the rear end before – including a split tailgate – but these photos give us a good look at the new rear lighting. Previous spy shots also suggest that the Ram will mostly retain its steel body. We also suspect it to arrive with coil springs and an optional air suspension. Rumors suggest the possibility of a turbo-four version, hybrid technology, and even a possible competitor to the Ford F-150 Raptor with a juiced-up V8. Look for the new Ram 1500 to take off the camo at the 2018 North American International Auto Show in Detroit next month. Related Video: