2005 Jeep Wrangler Unlimited 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.

2014 Jeep Cherokee starting price set at $22,995*

Love it or hate it, the 2014 Cherokee is on its way to a Jeep showroom near you this fall. Today, Chrysler announced the different trim levels, features and pricing for its new compact utility with a starting price of $22,995 (*not including $995 for destination), which is $400 less than the 2012 Liberty it ostensibly replaces.
Available in four trim levels - Sport, Latitude, Limited and Trailhawk - the new Cherokee will come standard with Chrysler's 2.4-liter Tigershark inline four-cylinder engine with the upper three levels offering the option of the company's 3.2-liter Pentastar V6. The base Sport is your typical entry-level model, featuring equipment including manual cloth seats and black exterior mirrors and door handles, but it also has a five-inch Uconnect media center, LED taillights and 10 standard airbags. Stepping up from the Sport model, Latitude and Limited trims bring increasing levels of luxury starting at $24,495 and $27,995, respectively. All three of these trims are front-wheel drive in standard configuration and offer varying versions of Jeep's Active Drive four-wheel-drive system.
The range-topping $29,495 Cherokee Trailhawk (shown above) comes standard with four-wheel drive and numerous upgrades to earn Jeep's Trail Rated fender badge. These changes include a unique design that adds an off-road suspension with taller ride height giving more aggressive approach and departure angles, underbody skid plates, distinguishing exterior design elements and a seven-inch, reconfigurable instrument gauge cluster similar to what it found in high-trim Dodge Dart models. Scroll down for a full breakdown of the 2014 Cherokee pricing and trim levels, and let us know what you think of the model's pricing and equipment in Comments.

Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.