On Monday, General Motors, Ford, Stellantis, and Toyota Motor North America reportedly asked the United States Congress to lift the existing cap on the $7,500 federal tax credit for electric vehicles. Though automakers petitioning the government for free money is hardly new business.
The United States has requested that Mexico investigate worker rights violations that were alleged to have taken place at one of the parts factories owned by Stellantis. Officials are curious about what’s been happening at Teksid Hierro de Mexico, a facility located in the border state of Coahuila that’s responsible for manufacturing iron casings, in regard to unionization. According to U.S. officials, this is the fourth such complaint under the United States-Mexico-Canada Agreement (USMCA).
Having supplanted the North American Free Trade Agreement (NAFTA) signed into law by the Clinton administration in 1993, USMCA sought to rebalance trade laws the Trump administration believed had disadvantaged the United States. However, it also sought to advance worker protections in Mexico and give employees an easier pathway toward unionization.
Stellantis has reportedly agreed to plead guilty to criminal conspiracy charges relating to emissions requirements on over 100,000 diesel-powered Ram and Jeep products sold in the United States. Fiat Chrysler Automobiles (FCA) was previously on the hook for $800 million in civil penalties over a so-called “defeat device” equipped to the automaker’s 3.0-liter turbo-diesel engine. Allegations began in 2017 as regulators were hunting for compliance violations in the wake of Volkswagen’s massive emissions scandal from a couple of years earlier.
Unless you’ve been living under a rock since 2019, you’ve probably realized that just about every major carmaker has plans to go “fully electric” at some point in the rapidly approaching future. That’s going to mean big changes in the way we buy and use cars, obviously— but change is hard, and not every company is going to be willing or able to make those changes.
That equally obvious fact begs the question: who’s not gonna make it?
General Motors, Stellantis, and Ford Motor Co. collectively decided to reinstate masking mandates in Michigan over the weekend — stating that the impacted factories were in areas with high levels of COVID-19.
The automakers had lifted mask requirements for employees after the backlash against government-backed restrictions and mandates hit a fever pitch in March. While protests had begun swelling by the fall of last year, the Canadian Freedom Convoy that was forcibility disbanded in February drew national attention to the issue. Despite Detroit manufacturers suggesting they would walk back restrictions (if the Centers for Disease Control and Prevention said it was okay) for months, ditching masks initially involved a series of stipulations about vaccinations and job titles. It wasn’t until public outrage spilled over into the real world that sweeping changes began to occur.
The automotive sector is currently suffering from ongoing component shortages and supply chain bottlenecks stemming from regional restrictions relating to the pandemic. However, it’s assumed that those problems will gradually abate, only to be supplanted by a global deficit of the raw materials necessary for battery production. Analysts have been warning about the shift toward electric vehicles, spurred on by government regulations, for years. But they’re starting to get some company from within the auto industry.
On Tuesday, Stellantis CEO Carlos Tavares suggested that there was a very real possibility that manufacturers could begin confronting serious issues in terms of battery production by 2025 if the shift toward EVs continues at pace. Though his concerns aren’t limited to there being a new chapter in the already too long saga about parts shortages. Tavares is also worried that Western automakers will become overwhelmingly dependent upon Asian battery suppliers which already dominate the global market.
With the house of Stellantis constantly exploring the upper echelons of what customers will pay for a rig with a Jeep badge on its nose, it seems that placing six-figure Grand Wagoneer L models next to entry-level Ram work trucks has become passé. If some corner-office dwellers have their way, Jeeps – or at least the snazzy ones – could earn a place in their own showroom.
BMW and Mercedes-Benz are dumping ShareNow — their jointly managed car-sharing businesses — and Stellantis will reportedly become the recipient. Effectively a merger of BMW’s DriveNow and Mercedes’ (technically Daimler AG’s) slurry of similar services that were rolled into car2go, ShareNow’s individual components have spent the last decade trying to figure out which markets would embrace app-based, roadside rentals charging by the minute and which would reject it.
The perpetual cycle of one-upmanship in the pickup truck game seems to be continuing at a breakneck pace into the electric era. The in-yer-face Ram brand, never one to shy away from bold or poke-the-bear marketing, let fly with a Twitter post touting their upcoming Ram EV – one day before the scheduled launch of the all-electric Ford F-150 Lightning.
France has grown suspicious of Stellantis CEO Carlos Tavares’ compensation, which the government has dubbed irregular and indicative of a need for further financial regulations in Europe. The issue doesn’t appear to have much to do with where the money is coming from, but rather the size of his current payment package.
Tavares oversaw the merger between PSA Group and Fiat Chrysler Automobiles in 2021 while he was still CEO of the former company. Having previously climbed the ranks at Renault, the executive has served as chairman of PSA’s management board since 2014. Now heading Stellantis, Tavares is positioned to receive roughly $20.5 million in compensation for 2021. In addition to that, he’s reportedly eligible for a stock package worth an extra $34.7 million and long-term compensation of about $27.2 million — which the French government believes is too much.
The auto industry might be moving headlong into all-electrics but that doesn’t mean internal combustion is dead, not by a long shot. Witness the introduction of a brand-new engine from Stellantis, a turbocharged inline-six that will be capable of generating more than 500 horsepower.
Development of this ‘Hurricane’ I-6 was kept on the down-low, at least as much as can be expected during these modern times when everyone has a camera in their pocket. Two variants will be available when the engine goes into production and pops up in showrooms later this year.
Ford and Stellantis are issuing recalls on some of their biggest models — figuratively and literally — this week. But the issues are quite a bit less dire than the repeat fire risks you’ve probably grown accustomed to. These defects will still allow customers to park their vehicle indoors without fear of awakening to a raging inferno emanating from the garage. Owners could probably even get away without having their cars fixed by the manufacturer until the relevant parts actually started breaking. Though why anybody would turn down free repairs on any component that didn’t pass muster is beyond me.
Impacted vehicles include 2021-22 model year Dodge Durango SUVs, 2019-22 MY Ram 2500 pickups, and 2019-22 MY Ram 3500 Chassis Cab trucks with a gross vehicle weight rating (GVWR) under 10,000 pounds, all with bunk electronic stability control (ESC) warning lights. According to the National Highway Traffic Safety Administration, an estimated 375,000 vehicles should be affected. Meanwhile, Ford is only looking at 175,000 units of the 2021 F-150 pickup with bum wiper motors.
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