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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.

Chrysler teases upcoming outlay of SEMA cars

Fiat Chrysler Automobiles is hauling a multitude of modified models to the annual SEMA show in Las Vegas this November, and the company is releasing the first teasing sketches of many of them.
Unfortunately, FCA isn't giving many solid details on any of the concepts other than saying the vehicles from Chrysler, Jeep, Dodge, Ram and Fiat all benefit from tuning from its Mopar performance brand. The teaser photos include a sinister-looking Chrysler 200S, Fiat 500 Abarth with two-tone paint and a scorpion on the hood, a red and black 500L, seemingly two different takes on the Jeep Renegade, a green Dodge Challenger wearing the T/A badge, an orange and black Dart, a very neon Charger, just the outline of a red and black Viper, a Ram ProMaster in Mopar livery and a Ram pickup called the Outdoorsman.
Take a look through the gallery to see what you think of the sketches for these concepts, and scroll down for the full announcement from FCA.

Jeep and Alfa Romeo join the already exotic Italian police force

Police departments in Italy are blessed with some of the most iconic cop cars on the planet. Where else will you see a pale blue Lamborghini Huracan LP 610-4 emblazoned with "Polizia" on the road? FCA decided they couldn't let Lamborghini steal the show and have handed over the first Jeep Renegade and Alfa Romeo Giulietta to the Police Academy in Rome. FCA is also loaning two Alfa Romeo Giulia Veloces that will join the two Giulia Quadrifoglios medical cars that are already in service. The Renegade is an four-wheel drive Italian-spec model with a 2.0-liter, 120 horsepower inline four-cylinder engine that we don't get in the United States. The current Giulietta is a small-hatchback that isn't sold in America. On the other hand, the new Giulia and its 280 horsepower turbocharged inline-four and the Q4 all-wheel drive system goes on sale next month. In polizia guise, it's one of the most formidable and beautiful pursuit vehicles on the road. FCA is no stranger to police cars and supplies Dodge Charger Pursuits to fleets all across the US. We spent some time in one a while back and learned all the pros and cons of driving a black and white cruiser. Related Video: Featured Gallery FCA Italian Polizia Cars View 10 Photos News Source: FCA Alfa Romeo Jeep SUV Off-Road Vehicles Police/Emergency Performance Sedan police car alfa romeo giulia jeep renegade