Tavares to suppliers: We are not 'the bad cop'

AMSTERDAM — Electric Ram pickups are on the way, and zero-emission Jeep odysseys through the countryside soon will be possible.

But these moves come with a huge cost, and Stellantis CEO Carlos Tavares doesn't hesitate to throw cold water on the rush toward electrification, even as he lays out a plan making clear that his company's future is battery-powered.

This pragmatism provided a contrasting backdrop to the splashy announcements that emerged from the automaker's Dare Forward 2030 plan unveiled here last week.

While Stellantis invests tens of billions of dollars in electric vehicles and crafts robust strategies, Tavares warns that the automaker must make productivity gains in the coming years to offset the additional expenses that come with building EVs rather than conventional gasoline models.

Tavares says suppliers will have to absorb these extra costs as well — but insists they shouldn't blame the automaker. The onus, he says, is on politicians who have goaded the industry to adopt EVs.

"It's not because we are the bad cop," Tavares told Automotive News. "It's because we see the magnitude of the challenge."Stellantis and its suppliers are in this EV journey together, Tavares contends, and the sooner they work cooperatively to find opportunities to reduce and absorb costs, the better. Stellantis already is aggressively pursuing ways to save money with new language in its North America terms for 2022, for instance, that directs suppliers to pass on any savings they achieve.

"They may not like the fact that we are too frank or too transparent," he said, "but in a way, they should be expressing some gratitude for the fact that we are giving the wake-up call early enough for them to prepare for it."

As suppliers decide whether they'll agree to help carry the EV cost load, Tavares said it comes down to this question: Do they want "to fix the global warming issue" — or not?

To help the Earth, he said, automakers are going to have to sell a high volume of products with lower emissions, and keeping those vehicles priced within consumers' budgets will be critical.

"If you don't want to face this reality, then I cannot help you because I will have to find a solution for my company," Tavares said. "It's a very short loop between, 'Are you sincere about bringing your fair share to fix the global warming issue?' — which means find more ideas to reduce costs to protect affordability to the middle class so that impact on the planet is strong."

Tavares' concerns about heftier EV production spending isn't stopping Stellantis from wide-ranging investments that will make its 14-brand portfolio more eco-friendly and better able to deal with varying government emission regulations across the globe.

And he's nonetheless excited about what the former Fiat Chrysler Automobiles brands he picked up in last year's merger with PSA Group have in the pipeline. The presentation last week showed that Stellantis is not working on a lineup of mere compliance cars.

For Dodge's upcoming electric muscle car, the brand is thinking beyond just how it will physically perform to give it a distinct sound that Tavares could only describe as "shocking." That sound is meant to hail a new age of performance for a brand that has been the antithesis of the EV movement with its thirsty Hellcat engines.

Dodge plans to show an electric muscle car concept this year and begin shipping its first battery-electric offering to dealerships in 2024.

"We are creating a sound that you cannot imagine," Tavares said during a media roundtable. "After they create the sound, they are thinking about how they make the sound louder and more powerful in function of the way you are using the car."

Stellantis is working to revive the Chrysler brand through electrification. Chrysler plans to launch its first EV by 2025 and do away with internal combustion engines by 2028.

In January, it unveiled the electric Airflow crossover concept, which has 350 to 400 miles of range and is based on the STLA Large platform.

Stellantis is having "many discussions in the design studio about the next models of Chrysler," Tavares said, "and they are really gorgeous."

Stellantis revealed an image of the first battery-electric Jeep, which Tavares said will support Jeep's "worldwide quest towards zero-emission freedom." It's slated to go on sale in the first half of next year.

Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, believes the compact Jeep will be assembled in Poland starting late this year.

Jeep, in a statement to Automotive News, said the introduction of EVs "will be timed to align with our customers' needs and expectations in each individual market."

Randy Dye, chairman of the Stellantis National Dealer Council, surveyed some of his fellow dealers about the electric Jeep. They said it stayed true to the brand's look.

Dye said Tavares' view that EVs are being pushed on the industry won't stop the company from producing quality products.

"I think what he's telling you is that he's a pretty independent thinker," Dye said. "And he probably doesn't appreciate being told what to do very often. But at the same time, he's a smart guy, and I think we're going to build the best stuff there is to build."