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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 Wrangler Dragon Edition coming to North America

If 2012 was the year of the dragon in China, perhaps the US can claim 2014. After showing the Jeep Wrangler Dragon Design Concept at the 2012 Beijing Motor Show, and apparently receiving "tremendously positive feedback" from Jeep enthusiasts across the globe, the automaker has decided to introduce a production version that will hit US showrooms this fall with a price of $36,095.
"The dragon symbolizes strength and power and is an aspirational character normally associated with royalty and good fortune," says Jeep, and that apparently equates to a blacked-out Wrangler Unlimited with bronze satin gloss highlights inside and out, along with big dragon decals that start on the hood and run down the fenders. There are 18-inch matte black wheels with a bronze outer edges, and a dragon-emblazoned spare tire cover completes the look.
We suggest you peruse the high-res image gallery above to see all the black and bronze detailing yourself, and make special note of the interior. In related news, all 2014 Jeep Wrangler models get an optional Trail Kit and clear park lamps to replace the previous amber units. New colors include Amp'd, Anvil, Copperhead, Flame Red, Granite Crystal and Hydro Blue (Freedom edition only), which join carryover colors Billet Silver, Bright White, Black and Dune.

2016 Jeep Wrangler to ditch solid axles to save weight?

Hey, Jeep fans. If you think the idea of a funky-looking, car-based Cherokee revival is offensive, have a listen to what might be in store for the next-gen Jeep Wrangler. Automotive News is reporting that as Jeep develops the 2016 Wrangler, weight reduction is a crucial target, and the Wrangler's rugged solid axles could be sacrificed in the name of better fuel economy.
We've already heard the next Wrangler will go on a serious diet using aluminum body panels and an air suspension system, so the idea of a four-wheel independent suspension setup for this OG SUV isn't all that surprising. Besides, it's not like an independent suspension would limit the Wrangler's off-road abilities - just check out the Hummer H1. In fact, it might be the aftermarket parts companies - not Wrangler enthusiasts - who would be most disappointed by such a drastic suspension change, as the article states that the Wrangler's solid axles and coil-link suspension make it the most popular SUV for customization.
There are probably still a couple years before we'll start hearing any concrete details about the 2016 Wrangler, at which time it will be interesting to see how stricter fuel economy and crash safety regulations have been balanced with traditional Wrangler cues like its removable doors and roof and folding windshield. Let us know in the comments below if a Wrangler sans solid axles is any less of a Wrangler.