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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.

Is Ram working on an HD Hellcat pickup truck?

Ram already offers an off-road-oriented Power Wagon pickup truck based on its heavy-duty 2500 chassis, and that's no slouch with a 410-horsepower, 6.4-liter Hemi V8. But add a 707-hp Hellcat to the mix and our interest goes through the roof. But is that what we're actually looking at in the spy photos above? Even a cursory glance at the shots proves these aren't ordinary Ram 2500 trucks. The most obvious visual hint is the big ram-air hood, but we also see a definite lift kit and heavy-duty suspension components underneath. The removal of the front and rear bumpers indicates that these trucks have good approach and departure angles, but it could also mean that whatever is underhood needs major airflow. Notice, too, that the two trucks seen here aren't traditional Crew Cab models, which is how the Power Wagon comes standard. Instead, there's a single cab and a massive Mega Cab sitting side by side. Is Ram going to unleash two new Power Wagon variants? Seems possible. It's really not possible to talk about a potential Ram HD Hellcat pickup truck without mentioning the Ford Raptor. The Blue Oval's SVT division has created one heck of a factory off-road monster, and it's set to get even better for the 2017 model year with an EcoBoost engine and four full-size doors. How could Ram, one of Ford's biggest truck competitors, answer Ford's latest assault? How about a Hellcat! Based on FCA's desire to put a Hellcat engine into anything that can hold it, it wouldn't be shocking to see an overpowered Ram model. And if that does happen, the Power Wagon platform is a great place to start. We don't know if that's what we're looking at, or if these trucks are test beds for future parts for the Mopar catalog, but either way we like what we see. Related Video: Featured Gallery Ram Hellcat: Spy Shots Design/Style Spy Photos RAM Truck Off-Road Vehicles ram power wagon

Work at a Chrysler dealership, get free college education

The cost of a college education in the US can put a student tens (hundreds, in some cases) of thousands of dollars into debt. FCA US wants to give its dealership employees a leg up, though, and the automaker is now offering a completely free education to them through a partnership with Strayer University. The workers can take any of the college's classes online or on campus through program called Degrees@Work. Currently, the offer is only available to employees Chrysler, Jeep, Dodge, Ram and Fiat dealers in the automaker's Southeast region, which includes Florida, Georgia, South Carolina, North Carolina, Alabama and Tennessee. However, a national expansion will happen before the end of the year, Strayer spokesperson Cristina Henley tells Autoblog. The program will cover all of the students' expenses, including their books, according to Henley. FCA US sees this partnership as a way to improve the talent of its workforce, retain employees longer and possibly attract people wanting to take advantage of this free education. "Many of our dealers have expressed concern over the availability of talent to fill open positions due to business growth and turnover in their stores, especially in metro markets," Al Gardner, the company's Head of Dealer Network Development, said in the Degrees@Work announcement. Strayer has about 40 programs available, including in business administration, accounting, marketing, and more, and the university offers associate's, bachelor's, and master's degrees. It will also give FCA US employees credit for their work experience to get them a diploma even more quickly. FCA US Dealers to Offer Employees No-Cost, No-Debt College Education FCA US teams with Strayer University to develop first-of-its-kind dealer program Degrees@Work program open to all employees of participating dealerships Employees can earn no-cost, no-debt degree through Strayer University All Chrysler, Jeep®, Dodge, Ram and FIAT dealerships may participate First phase of program rollout begins with dealers in the FCA US Southeast Business Center National rollout expected later this year May 4, 2015 , Auburn Hills, Mich. - Employees of Chrysler, Jeep®, Dodge, Ram and FIAT dealerships will have the unique opportunity to earn a no-cost, no-debt college degree through Strayer University's Degrees@Work program, developed in collaboration with FCA US LLC. FCA US is the only company in the automotive industry to offer the program.