2001 Jeep Wrangler Sport Sport Utility 2-door 4.0l 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 team takes a field trip to Wagonmaster; researching next Grand Wagoneer?

They have the very best intentions of rolling out a seven-passenger vehicle.
Wagonmaster has made a name for itself restoring and selling factory-perfect Jeep Grand Wagoneer models, bridging the gap between when the last production machine rolled off the line in 1991 and present day. The company's efforts haven't gone unnoticed. The entire Jeep product planning team took a little field trip to the company's facility in Kerrville, Texas back in December, and they weren't just there to take in the sights. According to owner Leon Miller's son, Chip Miller, the Jeep team was there to do research for the successor to the Grand Wagoneer throne.

Freak accident during Jeep demonstration turns fatal

A 20-year-old woman was killed in Edmonton, Canada on Satuday, reports CTV News, in a freak accident resulting from a rollover during a Jeep demonstration. As part of a fundraising enthusiast event called "Jeeps Go Topless," the driver of one Jeep Wrangler drove up and onto the top of the tire of another.
CTV reports that the owner of the topmost Jeep then switched the vehicle off, posed for pictures and then dismounted from his vehicle. His movement off of the Jeep apparently caused it to tip over, crushing a woman who was on top of an adjacent vehicle. Edmonton police are currently investigating more fully what caused the parking lot accident to occur. Scroll below to watch the CTV News video report about this tragic incident.