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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.

VW scandal, Alan Taylor on Vipers, and future cars | Autoblog Podcast #474

Episode #473 of the Autoblog Podcast is here. This week, Dan Roth chats with Sam Abuelsamid of Navigant Research about the just-announced deal pending between Volkswagen and the EPA, and Navigant's Transportation Outlook for 2025 to 2050. Alan Taylor, host of The Drive on ERN also visits the Podcast to talk about picking up his Viper ACR in Texas and driving it back to the West Coast. It all starts with the Autoblog Garage - check it out! Check out the rundown with times for topics, and thanks for listening! Autoblog Podcast #474 Topics VW/EPA deal Navigant Research Transportation Outlook Alan Taylor In The Autoblog Garage 2016 Lincoln MKX 2016 Volvo XC90 2016 Jeep Renegade Trailhawk Hosts: Dan Roth Guests: Sam Abuelsamid, Alan Taylor Rundown Intro & Garage - 00:00 VW/EPA - 25:51 Navigant Outlook - 38:47 Alan Taylor - 54:43 Total Duration: 01:13:11 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast at Autoblog dot com Review the show in iTunes Podcasts Dodge Volkswagen

Houston road rage incident devolves into all-out brawl

The video is no longer available. It appears the associated account has been terminated. Chaos erupted on a Houston freeway last weekend when an altercation spiraled out of control and ended up in a battle-royale style brawl in the middle of traffic. According to KTRK, David Dao and his daughter were traveling along FM 1960 on the morning of May 14 when they came upon a white Honda and a blue Ram truck parked in the right lane. The drivers and passengers of the vehicles were engaged in a spirited argument about something that had happened moments before Dao pulled up. Dao parked in his lane to block traffic in an attempt at making sure other drivers didn't hit the people fighting in the right lane, and instructed his daughter to start filming the incident in case they were needed as witnesses. As Dao's daughter filmed, the incident quickly escalated–harsh words were exchanged, a drink was thrown in a woman's face, and then the driver of the Ram kicked in the Honda's grille. "I couldn't believe it. As soon as he kicked the grille, I was like, 'This is going down now," said Dao. "I was thinking this is going to be bad. At that time, I knew because there was physical damage." As soon as the Ram driver kicked the Honda the entire situation went sideways and devolved into a huge brawl, with the people from both vehicles throwing wild punches and grappling with one another. A woman who was a passenger in the Ram attempted to break up the scrum but took a haymaker in the face for her troubles. Eventually, the fight broke up and the people returned to their vehicles which Dao assumed meant that the altercation was over. Apparently though, the Ram driver felt he hadn't made his point, and he reversed at high speed into the Honda, smashing the fascia and buckling the hood. The Ram then sped off westbound on U.S. 290 with the Honda on its tail. According to the Harris County Sheriff's Office, the incident was not reported and there is no word what happened to the brawlers after they left the scene. Related Video: News Source: KTRK Weird Car News Dodge Lexus RAM Driving Safety Truck Videos Sedan road rage houston fight