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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.

Chrysler recalling 67k trucks with manual transmissions

Earlier this month, Chrysler announced the recall of some 280,000 pickup trucks over concerns that their axles could seize up. Now the automaker has announced an entirely separate recall of another 66,819 trucks over the springs that could break in the clutch ignition interlock switch. The recall affects Dodge Ram 1500, 2500 and 3500 pickups, as well as the Dodge Dakota and Mitsubishi Raider. The issue is relevant only to those trucks fitted with manual transmissions, from the 2006 and 2007 model years and manufactured between July 1, 2005, and July 31, 2006. Since a broken spring could, according to statements issued by the National Highway Traffic Safety Administration and FCA US LLC (previously known as the Chrysler Group) prevent the vehicle from starting, or cause it to move unintentionally once the ignition kicks over, the automaker will begin notifying owners of the affected vehicles just before Valentine's Day to bring their trucks into their local dealers to have the clutch ignition interlock switch replaced. FCA emphasizes, however, that the unintended movement would only occur "in rare cases" and only "if recommended starting procedures are not followed." Only one such case is known to have occurred, but it did regrettably result in a fatality. Statement: Clutch Ignition Interlock Switch December 29, 2014 , Auburn Hills, Mich. - FCA US LLC is launching a voluntary global recall of an estimated 66,819 older-model pickup trucks equipped with manual transmissions. The Company will replace their clutch ignition interlock switches at no charge to customers. An investigation by FCA US engineers discovered switches in certain model-year 2006 and 2007 pickups may be equipped with spring wire that differs from wire used in previous switches. The alternate wire may break and, as a result, the vehicles may not start. In rare cases, a vehicle may – if recommended starting procedures are not followed – exhibit unintended movement when its ignition key is turned. The Company is aware of one fatality related to this campaign. It stemmed from the single known accident involving this population of vehicles. The recall covers certain Dodge Dakota, Dodge Ram 1500, 2500, 3500 and Mitsubishi Raider pickups. Switches with the alternate wire were not used in any vehicles produced before July of 2005, or after June of 2006. The Dakota and Raider are no longer in production.

Ram 1500 Texas Ranger Concept celebrates brand's law-enforcement partnership

While the auto industry's eyes are fixed on New York for its annual extravaganza at the Javits Center, Ram is making an end-around play. The truck maker is showing a new concept at the 2015 Dallas Auto Show based on the company's long-running partnership with the Texas Rangers (the lawmen, not the baseball team). Exterior changes to the 1500 are kept rather light, with badging inspired by the Rangers' iconic badges fitted to the front fenders and tailgate. The Rangers' badge is also found at the center of each 20-inch alloy wheel. As for the white/silver color scheme, it "embodies the white hats and silver badges that the good guys always wear." Starting with the handsome Canyon Brown and Tan leather of the Laramie Longhorn, Ram designers fitted four, five-peso coins to the door inserts. Texas Rangers' badges have long been hewn from the limited-issue Mexican currency, hence its inclusion in the 1500. The coins in the front door show "heads" and the back door coins are flipped to "tails." Adding to the unique touches, a prominent Texas Rangers' badge sits over the center console and is also embossed in the leather seatbacks. Even the dash cluster's display shows the Rangers' badge upon startup. Ram and the Texas Rangers formed their partnership back in 2014, with the truck maker "aiding the preservation of the history of the renowned law-enforcement organization," the company said in its press release. You can check out the full gallery of images, which include plenty of updated interior shots, above. As for Ram's press release, that is, as usual, available below. Related Video: Ram Unveils Texas Ranger Concept Truck Ram Texas Ranger concept follows 2014 partnership announcement Iconic Texas Ranger badges highlight Ram's interior and exterior design Western-themed trucks dominate Ram lineup in Lone Star State March 25, 2015 , Dallas - The Ram Truck brand today unveiled a one-of-a-kind Texas Ranger concept truck to commemorate and promote the brand's partnership with the renowned law-enforcement agency and the Texas Ranger Hall of Fame and Museum. Introduced by Ram Truck Brand President and CEO Bob Hegbloom at the 2015 Dallas Auto Show, the Ram Texas Ranger concept truck brings the legendary spirit of the Rangers to the road.