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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.

Race Recap: Abu Dhabi GP is reversals, luck, leanness and last dances

We weren't sure if Alter Ego Nico Rosberg, the one who flew into Brazil and showed Mercedes AMG Petronas teammate Lewis Hamilton that he knew also knew how to grab an entire race weekend by the scruff of the neck, arrived in Abu Dhabi. In both Friday practice sessions Hamilton showed Rosberg the way. Then on Saturday, Alter Ego Rosberg took over, taking the last Free Practice session and then pole position by a whopping four-tenths of a second over Hamilton. Thanks to the gimmicky and soon-to-be-obliterated spectre of double points, if Rosberg won the race and Hamilton finished lower than second, the World Championship would remain in German hands. Behind Hamilton came the Williams duo, again, with Valtteri Bottas ahead of Felipe Massa. Daniil Kvyat did swell to put his Toro Rosso in fifth, Jenson Button was just as swell getting his McLaren into sixth. Kimi Raikkonen outqualified his Ferrari teammate Fernando Alonso for the third time this year, the pair taking seventh and eighth on the grid. Kevin Magnussen lined the second McLaren up in ninth, Jean-Eric Vergne making the top ten for Toro Rosso in his last race for the team. To be clear, that was the final grid for race: Daniel Ricciardo and Sebastian Vettel had both qualified in the top ten but were sent to the back of the grid when their Infiniti Red Bull Racing front wings were deemed illegal. They'd start from the pit lane, which was still ahead of Romain Grosjean in the Lotus, who took so many penalties for new engine components that he started the race in Turkey. At lights-out on Sunday, well, it was pretty much lights out. That's when Hamilton got the start of the year, bolting off the line so quickly it didn't take him 100 meters to get in front of Rosberg. The Brit took Turn 1 in the lead, then laid more than a second into the German on the first lap. Rosberg kept close, about 2.5 seconds back, but it was Hamilton's race to lose and everyone knew it; barring a reliability issue or the kind of driving mistake Hamilton hasn't made all year, Britain would have its fourth double world champion. Rosberg was left asking his engineer what kind of strategy they might use to claim first place. That reliability issue did come, but it struck Rosberg on Lap 26 when his entire Energy Recovery System failed, robbing him of 160 horsepower and taxing his brakes.

Ferrari F12 Berlinetta takes home 2014 Robb Report Car of the Year [w/video]

In what is being called an "unprecedented landslide decision," those who have the right to cast votes have anointed the Ferrari F12 Berlinetta as the 2014 Robb Report Car of the Year. Standout features that have helped the Ferrari earn such a runaway victory include its 0-60 blast of 3.1 seconds, its 211-mile-per-hour top speed and the exhaust note of its 731-horsepower V12 engine.
After being driven by a team of journalists and 100 or so members of the private Robb Report Club, the grand tourer beat out a total of 13 contenders that included the Audi R8 V10 Plus, Lamborghini Aventador LP700-4 Roadster, Aston Martin Vanquish Volante, Bentley Continental Flying Spur, Jaguar F-Type V8 S, Chevrolet Corvette Stingray Coupe, Maserati Quattroporte GTS and Dodge SRT Viper GTS.
This is the 21st year that Robb Report has selected a Car of the Year. Scroll down below for the official announcement and video, and feel free to read more about the F12 Berlinetta and some of its worthwhile competitors over at Robb Report.