1986 Ferrari Mondial 3.2 Cabriolet on 2040-cars

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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.

'World's Most Expensive Car Crash' results in 10 charged [w/video]

Justice is slowly being served to those drivers who were involved in a 10-car pile up in Japan last year that saw eight Ferrari models, one Lamborghini and three Mercedes-Benz vehicles hauled off for scrap. As you may recall, the lead driver lost control of his machine, pin balling into those following behind and doing some $4 million in damage in the process. Now the 61-year-old lead driver and nine others have had their cases sent to prosecutors.
The group are currently being charged with suspicion of violating traffic laws. We'll take a moment to wait for the laughter to die down before continuing.
Prosecutors claim the drivers were exceeding the speed limit and not paying attention to the road when the incident happened. Six people were injured in the dust up, but everyone survived. The group was on their way to a supercar event in Hiroshima. Feel free to watch the original news reports below.

Ferrari design contest winner is sleek Manifesto concept [w/videos]

Ferrari asked students at a selection of top design schools around the world to submit their best ideas, and this is the one that a jury of people close to the company unanimously chose as the winner. It's called the Manifesto, and it was designed by six students at the ISD-Rubika in Valenciennes, France. The sleek design features a single line extending from the nose, rising between the arched fenders, over the greenhouse, and back to the tail. The rear wheels are spaced from the tapering greenhouse in a manner not unlike those on the Ford GT. There's a snorkel air scoop on the roof, thin strips for head- and taillights, and a split cockpit that opens with canopy-like clamshell doors. The striking shape is rendered in black with red highlights, and appears to be propelled by some manner of jet engine. The jury was made up of designers, engineers, collectors, and drivers – including Paolo Pininfarina, Sebastian Vettel, Nick Mason, and Jay Kay. Despite their varied backgrounds, Ferrari says their decision was unanimous in singling out the Manifesto as the clear-cut winner. They also made special mention of the FL, a futuristic cockpit layout designed by Roman Egorov – a Russian student at the Hochschule Pforzheim in Germany. The results from an online poll also awarded the popular Premio Speciale to the de Esfera designed by three students from Hongik University in Seoul, South Korea. Check out the winners in the gallery above and the videos below. You can also review all the entries in the supplemental gallery at bottom, and if you think the jury made the wrong call, share your thoughts in comments. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Presenting Manifesto – The Ferrari of the future Winners of Top Design School Challenge announced Maranello, 15 January – The Manifesto, the FL and the de Esfera are the three winning models in the third Top Design School Challenge, in which four prestige institutes submitted three designs each of the Ferraris of 2040. The jury comprised Ferrari exponents in the broadest sense of the term from designers to engineers, drivers and even famous collectors: Nicola Boari, Franco Cimatti, Aldo Colonnetti, Rodolfo Gaffino Rossi, Jay Kay, Flavio Manzoni, Nick Mason, Andrea Militello, Paolo Pininfarina and Sebastian Vettel.