2010 Jeep Wrangler Unlimited X Sport Utility 4-door 3.8l on 2040-cars

Auto blog

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.

Fiat 500X poised for Paris catwalk

We've known for some time that the new, Fiat-based baby Jeep (which may or may not be called the Jeepster) is set to arrive at the 2014 Geneva Motor Show. What we weren't sure of was whether its platform mate, the so-called Fiat 500X, would be doing so alongside or at a later date. Well, according to Reuters, we'll get to see the first all-wheel-drive 500 later this year in the City of Lights.
Yes, we can expect the 500X to arrive at the 2014 Paris Motor Show, according to an official with an Italian trade union. The unnamed source cited retooling at Fiat's Melfi factory, in southern Italy, which currently produces the Grande Punto. It's expected that the newest member of the growing 500 family will replace the Suzuki SX4-based Fiat Sedici, although when the X will go on sale remains an open question.
According to Reuters, both the Jeepster and 500X will be built alongside each other in Italy. Whether the 500X will cross the pond with it's slat-grilled cousin, though, remains to be seen (we're leaning towards yes).

Chrysler adding 200 jobs at Ohio Jeep Wrangler plant

Chrysler is betting that the Jeep Wrangler will continue its strong sales surge as it continues to push the legendary brand out across the globe. The Auburn Hills automaker is reportedly adding 200 workers at the Toledo, Ohio plant that builds the Wrangler. What's more, those new hires will be at their posts quickly - they'll be on the job by April 1. Of those 200 workers, 130 employees will be there to relieve those who need breaks.
Why do they need so many relief workers? The Toledo Jeep Complex is currently working at a torrid pace with two ten-hour shifts. A third shift has been ruled out for the moment because of a production botttleneck - the plant's paint shop is already maxed out. According to Reuters, Wrangler production in 2012 cleared 200,000 units, and US sales were up by 16 percent.
Another part of the Toledo plant is presently down as Chrysler retools the line to build Jeep's divisively styled Liberty replacement, the Cherokee (seen in our gallery below). Production for the new model is scheduled to begin toward the end of May.