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Stellantis to offer electric versions of most of its European lineup by 2025

Newly merged automaker conglomerate Stellantis will offer electric versions of almost all of its European lineup by 2025, it said on Thursday, as the auto industry faces regulatory pushes in Europe and China to accelerate the shift to zero-emission cars. Formed in January by the merger of France's PSA and Italian-American group Fiat Chrysler, Stellantis is the world’s fourth largest carmaker with 14 brands including Opel, Jeep, Ram and Maserati, and like its peers faces an investor community keen for a road map to an electric lineup to rival Tesla . Speaking during Stellantis' first annual shareholders meeting, Chief Executive Carlos Tavares said that in 2021 the carmaker expects sales of electrified vehicles — that is, both plug-in hybrids and fully electric models — to more than triple to over 400,000 units in 2021. By 2025, electrified vehicles should make up 38% of European sales, a huge jump from the 14% of sales it expects in 2021. Tavares said by 2030 electric models should make up 70% of European sales and 35% of U.S. sales. He said Stellantis will use four electric platforms for passenger vehicles across its 14-brand empire — small, medium and large sizes for cars, and "frame" for high-margin SUVs and pickup trucks. Sweden's Volvo said this month its lineup would be fully electric by 2030, and Ford Motor Co said in February its lineup in Europe would be too. BMW has said at least 50% of its car sales should be fully-electric models by 2030. Sales of electric and plug-in hybrid cars in the European Union almost trebled to over 1 million vehicles last year, accounting for more than 10% of overall sales. Green Alfa Romeo Fiat Jeep Maserati Citroen Lancia Opel Peugeot Vauxhall Electric Hybrid Stellantis

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 'trailer hitch' recall repair rates lag amidst reports of new death

The problem with exploding fuel tanks in the 1993-1998 Jeep Grand Cherokee and 2002-2007 Jeep Liberty in some rear collisions continues to be a problem for FCA US, formerly Chrysler. The campaign to fix the utility vehicles was first announced in June 2013 after 51 claimed fatalities, and the fixes reportedly began in January 2014. However, there continue to be new deaths blaming the problem in unrepaired models, according to The Detroit News, citing data from the Center for Auto Safety. The automaker initially refused NHTSA's pressuring to conduct a recall because the models met applicable crash standards when they were manufactured, but eventually, there was a compromise to inspect and fix about 1.56 million Jeeps. With the fuel tank located between the rear axle and bumper, the unusual fix was to install a trailer hitch for extra protection. The National Highway Traffic Safety Administration later agreed that the change would provide added safety in lower to medium speed crashes, but not high-speed crashes. The most recent fatality, according to The Detroit News, occurred on a Michigan freeway in November 2014 when a pregnant woman in a 2003 Liberty was rear-ended when traffic slowed. Her Jeep impacted the vehicle in front, rolled over and a fire resulted. The family reportedly plans to file a lawsuit against FCA. At issue has been the rate at which the vehicles are being fixed. In July 2014, the automaker estimated it could have all of the vehicles repaired by March 2015 thanks to additional hitch supplies. But by November, NHTSA claimed that only three percent of the recalled models had been fixed. FCA says it continues to work to notify owners, though. According to Chrysler spokesperson Eric Mayne to Autoblog, "We are processing approximately 1,200 vehicles per day. Every owner who schedules service is receiving service. As of Jan. 8, that total was 193,490." The company has also mailed out over two million notifications to owners, more than the number officially called in. Given the age of these Jeeps, many of them have had multiple owners, and historically, the older a vehicle is, the less likely the recall fixes are to be carried out. FCA is currently creating a video urging people to have the hitch installed to be released soon. News Source: The Detroit News [1], [2]Image Credit: Jeep Recalls Jeep Safety SUV FCA jeep liberty jeep safety