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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.

Consumer Reports says Ram 1500 tops fuel economy fight [w/video]

Consumer Reports takes its independent vehicle testing procedures seriously. In an era when we have to question the EPA's official ratings thanks to recent re-evaluations from Ford and Hyundai, an independent voice is important. So, when CR says something is the best, it's worth paying attention to. The Ram 1500 EcoDiesel has "about the same fuel-economy numbers that we typically see in a midsized SUV." – Jake Fisher In this case, CR took a look at the fuel economy of the 2014 Ram 1500 EcoDiesel and found that it came out on top of the fullsize pickup truck pack. The Ram did so with 20 miles per gallon overall and 27 mpg on the highway. CR gave the truck a total road test score of 82. The EPA says that the EcoDiesel 1500 gets 28 mpg on the highway, 20 mpg city and 23 mpg combined. Comparing official EPA numbers, the Ram is also the best among trucks in its class. It's nice when people agree on something. As we know from first-hand, long-distance experience, you can push the 1500 EcoDiesel to 38 mpg. CR found in its own testing that the truck had, "about the same fuel-economy numbers that we typically see in a midsized SUV," said Jake Fisher, CR's director of automotive testing, in a statement. Speaking of midsized SUVs, CR also announced this week that the new Toyota Highlander Hybrid got the top spot in CR's ratings in that category. CR liked pretty much everything about the SUV, saying that the "transitions between electric power and the gas engine are seamless" and that, "the new Highlander also handles better, with a steadier ride and reduced body lean in corners." You can find more at the CR website, in the October print issue of Consumer Reports or in the video and press release below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. RAM ECODIESEL 1500 TOPS CONSUMER REPORTS FULL-SIZE PICKUP TRUCK RATINGS Redesigned Toyota Highlander Hybrid Climbs to Top of Midsized SUV List Yonkers, N.Y.- The Ram 1500 EcoDiesel climbed to the top of Consumer Reports' full-size pickup truck ratings with an impressive performance in the organization's fuel economy tests. The EcoDiesel (82 point overall road test score) turned in a best-in-class fuel economy of 20 mpg overall and 27 mpg on the highway, to help it score better than the previously tested Ram 1500 V8 (81) regular gas version and Chevrolet Silverado 1500 LT (80).

Chrysler recalling 278,222 trucks and SUVs over bad rear axles

Chrysler has issued a recall of 278,222 light trucks and sport utility vehicles here in the United States. The reason: bad rear axles. Specifically, according to the National Highway Traffic Safety Administration, the rear axle pinion nut may lack a necessary adhesive patch, which could cause the nut to loosen. If this happens, the axle can lock up, which could cause all sorts of havoc on the road.
This is an expansion of the rear axle recall announced in October of last year, where 44,300 Ram 1500 and Dodge Dakota models were being called in. At that time, 12 accidents had been reported due to the faulty axle pinion nut.
Affected vehicles include Ram 1500 trucks from the 2009 to 2012 model years, Dodge Dakota models from the 2009 to 2011 model years, and both the Chrysler Aspen and Dodge Durango SUV twins, both from the 2009 model year only.