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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.

2014 Jeep Cherokee uncovered with bold new look

Jeep has been shuttling around Alfa Romeo-based test mules and camouflaged prototypes of its replacement for the current Liberty for some time now. Those heavily disguised vehicles may have offered a glimpse of the new Jeep, but a new set of production-line images from Jalopnik tell a much more complete story.
Jalopnik report indicates unequivocally that the Cherokee name will be re-upped in place of Liberty, though it doesn't spell out exactly where that thinking comes from, though a name change has been rumored for some time. Chances are good that the same source that delivered these factory images delivered the name, as well.
The Cherokee absolutely has some Alfa Romeo DNA in its makeup, the final product is far from looking like its Guilietta ancestor. The athletic, high-waisted design is relatively attractive from what we can see here, though the grille and headlight treatment are sure to cause a lot of ruckus when the Cherokee makes its official debut at the New York Auto Show in April. The very narrow, pointed headlamps are pinched in a not particularly Jeep-ish fashion, and the curved, short version of the seven-slot grille is far more rakish than anything that Jeep has produced to date.

Going high-tech, the 4x4 way

Is It An Off-Road Adventure Or Just A Walk In The Park?
I remember having to get out and lock hubs and shift into neutral to engage low range.
Coming off press previews of the 2013 Land Rover Range Rover and the 2014 Jeep Grand Cherokee that involved some heavy-duty off-road rock climbing, I'm simply amazed at the capabilities that these vehicles possess. But even more impressive (or troubling depending on your perspective) is the relative ease with which you can operate these vehicles in seemingly impossible terrain.