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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.

Mopar '15 performance kit now available for Dodge Charger R/T

Dodge is releasing a new Mopar performance kit for the 2015 Charger R/T sedan, offering up just 50 examples of the dealer-installed upgrade package. Only a select few dealers will sell the kit, and they'll do so at a price of $3,550. As per usual, the Mopar kit makes both performance and aesthetic changes. For the 5.7-liter Hemi V8, upgrades include the Stage 1 Scat Pack kit, which adds a cat-back exhaust and cold-air intake, good for 18 additional horsepower and 18 more pound-feet of torque. There's also a new strut tower brace and a "premium fuel powertrain control module." Aesthetic changes are remarkably simple, with matte black body-side decals being the only notable addition to the exterior. In the cabin, there's a serialized dash plaque and new door sill plates. This is the sixth Mopar special edition since 2009. If you wish to join this fairly exclusive fraternity of Dodge owners, dealers are currently accepting orders, with deliveries slated to start later this month. Scroll down for the official press release from Dodge. PERFORMANCE IN A BOX: MOPAR '15 PERFORMANCE KIT LAUNCHES FOR 2015 DODGE CHARGER R/T Owners of 2015 Dodge Charger R/T can enhance their ride with a Mopar '15 performance kit 50 limited-edition Mopar '15 performance kits now available through authorized dealerships for an MSRP of $3,550 Mopar '15 follows the success of five special-edition vehicle packages offered by the FCA brand since 2009 Delivery of Mopar '15 performance kits to begin in early June June 8, 2015 , Auburn Hills, Mich. - Mopar enthusiasts that feel the need to enhance the look and performance of their new 2015 Dodge Charger R/T can now do exactly that with a new Mopar '15 performance kit. With just 50 units available, authorized dealerships are now accepting orders for the limited-edition Mopar '15 kits for an MSRP of $3,550 with delivery to begin in early June. "Mopar has a long history of delivering to enthusiasts performance and customization in unique and convenient packages," said Pietro Gorlier, President and CEO — Mopar Brand Service, Parts and Customer Care, FCA. "We are now shifting into another gear and offering a limited-edition kit that will allow customers to really enhance the performance and look of their Dodge Charger R/T." The Mopar '15 kit is a street-legal performance package that includes the Scat Pack Performance Stage Kit 1, as well as a front strut tower brace with caps and bright pedal kit.

Lackluster Dodge Dart sales trigger layoffs

Hidden amidst the overall very positive sales figures that Chrysler released earlier this week were a few disappointments, the biggest of which may be the Dodge Dart. While Dodge sales in general were down 11 percent from a year ago, the Dart's poor figures stood out from the rest - with 4,888 units sold, the Dart was down 37 percent in February.
It comes as little surprise, then, that the automaker has announced layoffs at its assembly plant in Belvidere, IL. According to The Daily Herald, Dodge will temporarily lay off 325 workers "to balance vehicle supply with current sales demand." Put more simply, there are more Darts than buyers at the moment...
We don't think the Dodge Dart is a bad car, but it's playing in a market that offers a few standout sellers, like the Chevy Cruze, Ford Focus, Honda Civic and Toyota Corolla. According to AutoPacific analyst Dave Sullivan, as quoted by The Daily Herald, "great incentives on the Dodge Avenger" are also partly to blame for the Dart's poor showing.