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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.

Ram raises a quick $1 million for farmers with Super Bowl ad

While Chrysler has been behind the Super Bowl's most talked-about commercials for the past few years, this is the first year the automaker has added an element of charity to its marketing plans for the big game.
Chrysler aired a pair of two-minutes ads during the Super Bowl this year, one for Jeep called Whole Again, and the other for the Ram brand called Farmer. As we mentioned earlier in the week, Jeep has promised to give up to $300,000 to the United Services Organization (USO). The brand, whose own history is forever tied to this country's military, will donate $1 for every tweet with the hashtag #joinOSR, or visit to Yahoo.com or the Jeep Operation SAFE Return website.
Ram had somewhat loftier goals, pledging to give up to $1 million to the Future Farmers of America. The plan was to donate $100,000 for every 1 million times the commercial was seen, shared or emailed from its website. Now we have word from Ram brand chief Fred Diaz that the million-dollar goal has been reached less than five days after the ad first aired.

Ram and Fiat Professional announce plans for new trucks, vans starting in 2015

Ram Trucks CEO and President Reid Bigland got his turn among the executives elucidating the near-term futures for brands in the Fiat Chrysler Automobiles umbrella, laying out the plans for both Ram trucks and Fiat Professional. After Bigland said that the company "will continue to invest heavily in commercial vehicles" for the Italian arm, he didn't give many specifics as to where that investment would go. What we do know for now is that a new Fiat Doblo will come next year - that's the truck we've been catching spy shots of and that will be the basis for the Ram ProMaster City.
In 2016 will come the next-generation Fiorino, a small cargo van sold in markets outside the US as a Fiat, as the Citroën Nemo and Peugeot Bipper. The European and South American markets will also get a new midsize pickup that same year.
Bigland's goal for Ram Trucks and Ram commercial is just a touch more ambitious: "Build the best pickup trucks and commercial vehicles in the industry" and increase NAFTA-market sales from 463,000 in 2013 to 620,000 in 2018. The waypoints along that road include a refresh for the Ram 1500 in 2015 and then a brand new 1500 to come two years later in 2017. Bracketing that, a refresh for the Heavy Duty lineup happens in 2016, and two years later it will also get an all-new generation.