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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.

Mopar showcases modified Jeeps in Dubai

Showing that FCA is serious about expanding its global reach, Jeep and Mopar have rolled in to the Dubai Motor Show this year with three modified off-roaders. One is based on the Cherokee, and the other two are wrought from the Wrangler. But it's the Cherokee that's getting the lion's share of attention. The vehicle you see pictured here is called the Jeep Cherokee KrawLer. It's based on the Trailhawk, but adopts some special equipment to set it apart. It packs a modified suspension, BFGoodrich off-road tires, widened fenders, skid plates, a pseudo-military matte green paint job and a matching green leather interior from Pelle Frau. Power comes from the 3.2-liter Pentastar V6 driving 272 horsepower through a nine-speed automatic and locking rear differential to all four wheels. The name KrawLer emphasizes the KL code by which the current Cherokee is known. Alongside the Cherokee KrawLer, Mopar and Jeep are also showcasing a pair of modified Wranglers. One is the Sahara Sun Runner, done up in matte yellow with a four-inch lift kit and half-doors. The Wranger Dark Side, meanwhile, is based on a two-door Rubicon and features giant tires, flat fenders, and an array of other Mopar components. Alongside those, Jeep is showcasing the Renegade for the first time in the Middle East. Meanwhile, Mopar is also demonstrating its enhancements for the Chrysler 200, Dodge Charger R/T, Dodge Challenger Hellcat, Ram Rebel, Fiat 500X, and the new Fullback pickup from Fiat Professional. The Fiat division will also be on hand to show the new Tipo sedan as well. 10 November 2015 The Jeep® Brand at the 2015 Dubai International Motor Show - Premiere for the Middle East of the new Jeep®; Renegade - Three show cars fitted with exclusive Mopar®; accessories: Cherokee KrawLer, Wrangler Sahara Sun Runner and Wrangler Dark Side to star on the stand - Reinforcing the breadth of the Jeep brand, the full current vehicle line-up will be on show at the Middle East's leading automotive event Making its debut for the first time at a leading motor show in the Middle East is the new, recently-introduced Jeep®; Renegade, the compact SUV that boasts the best off-road performance in its segment alongside three Moparised show editions: Cherokee KrawLer, Wrangler Sahara Sun Runner and Wrangler Dark Side.

Jeep Chief and Wrangler Red Rock Responder teased ahead of Easter Jeep Safari

Jeep is being coy about it's lineup for the 2015 Moab Easter Jeep Safari, releasing just a pair of shots and an exceptionally brief press release on two of the seven concepts coming to the desert later this month. So, what can we glean from the limited assets that have been given to us? Well, as we said, we know Jeep is bringing seven vehicles to its big festival. We also know the names of two vehicles, shown above – there's the Chief and the Wrangler Red Rock Responder. Which is which? A fair question. We're betting the second image is the Wrangler-based Red Rock Responder. As for the Chief, well, we've absolutely no idea what to expect there. Jeep's Moab concepts generally include the model name on which their based – see the Grand Cherokee Trail Warrior and Cherokee Dakar from last year, or even the Wrangler Red Rock Responder, mentioned above. There's no such moniker on the Chief. As for the Chief's illustrated teaser image, as we said, it doesn't reveal much. The body is angular, and quite Jeep like, with squared-off wheel arches and decidedly old-school taillights. Beyond that, though, we don't have much to go on. Expect much more not just on the Chief and Red Rock Responder, but on all seven of the concepts Jeep is bringing to Moab. The party starts on March 28 and runs until April 5. Be sure to check back then for full coverage. Related Video: