1986 Jeep Grand Wagoneer 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.

Jeep gives Cherokee its yin and yang with Sageland and Urbane concepts

Among the design concepts Jeep has prepared for Beijing Motor Show this year are a pair of Cherokees dressed up in contrasting schemes.
In one corner we have the Sageland concept pictured above, drawing its inspiration from Shangri-La with an Ivory Peal tri-coat and bronze trim for the grille, fascia appliqués, roof rack, sunroof, mirror caps and exhaust tips. Inside it's all earth tones with light gray Nappa leather seats and red and blue top-stitching inspired by traditional Chinese themes.
Meanwhile the Urbane concept (pictured right) takes the Cherokee in a different direction with steel blue metallic paintjob and black accents. Inside it adopts the theme of Chinese calligraphy with Piano Black accepts and dark red Nappa leather.

Jeep Renegade to show off new Mopar gear in Detroit

Jeep's adorable new Renegade is arriving in the US market soon (we're looking forward to driving it in a couple weeks), and to highlight that fact, the American off-road brand is trotting out a pair of Mopar-modified compact CUVs for the 2015 North American International Auto Show. Rather simply, Jeep has modified one Renegade to show off its prowess in the city, and another that plays up the crossover's off-road abilities. Despite their different purposes, both vehicles show off Mopar's parts catalog and Jeep's Authentic Accessories lineup for the new baby Jeep. The Urban Renegade borrows uses a Renegade Limited with Anvil paint as its base and draws from the Accessories catalog, adding a number of Omaha orange accents and satin black wheels. Mopar donated a bike-hauling trailer hitch to the rear of the Renegade, while its cabin features Katzkin leather-lined seats. Once again, Omaha orange accents brighten up the Limited's cabin. As for the off-road model, Mopar got a bit more involved, starting with the Renegade Trailhawk and adding satin black wheels with Colorado red trim and X-shaped graphics, borrowed from military jerry cans, to the Commando Green exterior. A number of prototype and one-off body mods were fitted to the Trailhawk, including a concept skid plate, rock rails and a new rear valence. Inside, Katzkin leather was applied to the Renegade's seats while the Omaha orange accents from the Urban Renegade have been replaced with Commando Green bits and bobs in the off-road model. Look for more on these new Renegade twins come Monday, when we hit the floor of the 2015 Detroit Auto Show. Until then, check out the official press release from Mopar. Mopar to Showcase Trio of Customized Vehicles at NAIAS 2015 - Mopar display at 2015 North American International Auto Show (NAIAS) in Detroit to spotlight how Mopar parts help customers personalize their rides - Off-road Mopar-equipped Jeep® Renegade makes Trailhawk model of Jeep brand's all-new small SUV even more trail tough using Jeep Performance Parts - Urban Mopar-equipped Jeep Renegade enhances city-sized proportions and versatility of the all-new 2015 Renegade with selections from Jeep Authentic Accessories catalog - Dodge Challenger T/A Concept blends vintage design cues with cutting-edge Mopar performance mods January 9, 2015 , Auburn Hills, Mich.