If you have Vehicle-to- Home, Vehicle-to-Grid is an Easy Add-on

Joe Tolkacz, Chief Engineer, Stellantis

The Stellantis RAM 1500 Ramcharger is the first of its kind in the US market – a light truck with a pure serial range extender drive, a range of 690 miles, and two e-drives providing 647 hp in total. We spoke to Chief Engineer Joe Tolkacz, who presented the Ramcharger at the CTI Symposium 2025 in Novi. We were particularly interested in the additional utility value, compared to a conventionally powered light truck.

Mr Tolkacz, you could have built a ‘classic’ parallel plug-in hybrid. Why did you pick a serial hybrid?

When you switch from electric to serial hybrid drive, when the engine starts making torque, the start-stop capability and smoothness are very transparent to the customer. The other thing is that we are working on a battery-electric-only version, and we will be able to reuse many of the components from the range extender on the BEV. The electric drive modules and the charger work very well in both the electric rangeextended vehicle and the BEV version. Basically, you could take the Ramcharger, take the engine out, and you have a BEV. Those were two big factors for us.

Some people say P2 hybrids have better load and towing capacity, because there are no thermal issues with an engine drive. How did you handle that with the serial hybrid?

The first thing we did was a lot of analysis. We have capable tools for estimating our towing capacity and other performance attributes. These tools helped us to work backwards to design the motors, the batteries, and other components. With the tools, we can do more than just typical EPA cycles. We have the capability to simulate the Davis Dam test, which includes towing on an 11.4-mile slope with a 3500-foot altitude difference, for example. We can also simulate 65 miles cross-country towing, and we can simulate the Eisenhower pass in Colorado. So we have a lot of great simulation capabilities. We broke the results down to the subsystem level. We tested the heck out of all components, put it all back together, and now we’re finishing up on the vehicle side to ensure that the simulations correlate well with what we saw in the vehicle. If we find things that don’t quite correlate, we can go back to the simulations and correct them. That helps us to preverify design changes. You know, we want to have a no-compromise vehicle for the customer, so that was our guiding principle from the start – from the simulation through the vehicle design and testing.

Given the traction requirements, why don’t you have gears for the e-drive, or for parallel hybrid mode?

One of the things you get into when you have these additional gears, such as when you have a multispeed gearbox or multi-speed e-drive, is where the shifts occur. It’s challenging to make those shifts transparent. But the key point is, we don’t need any gears for traction reasons. Another advantage of having no gearbox for the engine drive is that we have a lot of flexibility with engine positioning. We saw that multi-gears were not needed, the complexity was not needed, and the drive disturbance was certainly not desired. One of the main reasons for studying a multi-speed gearbox for the e-drive is when you are limited in your motor capabilities. Fortunately, for this vehicle, the top speed isn’t crazy – it is in the region of 115 mph – so our motors were able to achieve that with a 15:1 gear ratio. You may need multispeed gearboxes for some performance cars with higher speeds, where you may have an issue with the motor speed. So we are pretty comfortable with where we ended up.

The generator has much less power than both drive motors. How do you continually ensure full power supply during serial operation?

We do have modes where the battery power plus generator power can result in the electric drive units being capable of making 500 kW. If we claimed that we had e-drives that could achieve 500 kW theoretically, but not in any practical situation, that would look awkward. As for steady-state conditions with continuous power requirements, for me it was pretty surprising that we can tow our max Trailer cross-country at 65 to 75 mph, and our generator keeps up with our power requirements. We don’t ever deplete the battery in these conditions. As I mentioned in my speech here at the CTI symposium, we have some special modes. For instance, if we’re towing a trailer uphill, say, up Davis Dam at 120 °F (49 °C), we know we have a lot of thermal load. So when a customer anticipates such a scenario, he can push the ‘tow’ button, and we pick a different state-of-charge point that allows for maximum load towing in charge sustaining mode. Or we have the ‘e-save’ button that preserves the state-of-charge, and so forth. So there is a lot of flexibility there. We’ll have to do a good job of educating drivers to make sure they take advantage of all these opportunities.

Which axle design did you choose to enable off-road capacity?

We designed the Ramcharger with independent front and rear suspension and frame-mounted drives. Ordinarily, that’s not the choice for off-roaders. We did that intentionally because we didn‘t want to compromise the on-road experience. Many people never go off-road; they don’t even tow anything. The ramcharger is their family vehicle. They want it to be luxurious and comfortable. However, we added some features to balance that trade-off, for instance, the electronic locking differential, or active suspension, so you can raise or lower the vehicle. These features are good ways to satisfy our off-road customers.

What extra utility value does the Ramcharger offer, compared to traditional powertrains in this segment?

You know, 14,000 pounds is a pretty nice towing capacity! If you compare that to some of our competitors, it’s close to medium-duty capability, it’s really a lot for a light truck. We have 690 miles of range, which is not far off from diesel territory. I took a compass and drew a circle around Auburn Hills, to see how far I could get with those 690 miles. It covers a lot within the USA. You can get to Kansas City, St. Louis, or up to Quebec City in Canada. Then we have these V2X features that conventional drives cannot offer. That, to me, is a huge selling point for a truck. I love the idea of having a power panel to plug stuff in at my cabin in northern Michigan. You don’t always have extension cords to reach from where the outlets are. I can move the car around my property and use it for any kind of electric equipment I have. It can be useful when people are building homes before electricity reaches the site. So they can run their circular saw, their tile cutters, or whatever they need to run, off the battery of their truck. And there are also these guys on primitive campsites in a national forest area, for example, without any electric outlets. Another thing in the US, especially in college football, is tailgating. That’s when people drive their trucks to the stadium and sit in a parking lot for a picnic. Sometimes you see people with television sets, electric pots with barbecue pulled pork, or other things. For that kind of adventure, there’s the word glamping, which means glamorous camping. The Ramcharger supports all these activities.

The front and rear e-drives, engine-generator unit, and the battery of the Ramcharger are mounted in a frame structure with independent front and rear suspension. (© Stellantis)

What do you offer in terms of vehicle-to-home or even vehicle-to-grid, and how much of a future will this technology have?

Currently, we can do what’s called vehicle-to-home or V2Home. If you assume 30 kW, which is quite a lot, you can power a house from the gasoline and the battery for about 11 days. And if you cut that down to 15 kW, it’s about 22 days. The next thing that is coming in the future is vehicle-to-grid. The requirements haven’t stabilized yet, so we decided not to chase that. But technically, it’s quite easy to do with our baseline. Once you have V2Home, vehicle-to-grid is an easy add-on.

Interview: Gernot Goppelt

From Stress to Strength: Restructuring for Financial Resilience of Automotive Suppliers

How automotive suppliers turn crisis pressure into liquidity, innovation and long-term competitiveness.

Matthias Müller, Partner Restructuring and Finance, Dr. Wieselhuber & Partner GmbH
Dr. Dirk Artelt, Managing Partner Industrial Goods and Automotive, Dr. Wieselhuber & Partner GmbH

1. When Transformation Meets Pressure

The automotive supply industry is under historic pressure. Electrification, digitalization and sustainability requirements are reshaping value chains, while inflation, volatile call-offs and financing constraints are compressing margins and liquidity. Many suppliers are struggling to balance transformation investments with short-term financial stability.

At the same time, traditional commercial banks are increasingly withdrawing from the sector, reducing credit exposure and tightening risk criteria. This structural shift in financing markets further limits access to liquidity precisely when suppliers need it most – to stabilize operations, fund innovation and manage volatility.

However, crisis and transformation are not opposites. If managed systematically, short-term stress can become a catalyst for structural improvement, turning liquidity pressure into financial resilience and innovative strength.

2. Creating Transparency: Assessing Position and Potential

Every restructuring and transformation process begins with a clear understanding of the current position. The foundation is a pragmatic and well-founded assessment of the status quo: Where does the company stand today in terms of its business model and financing structure?

Two analytical dimensions form the core of this assessment:

• Business Model Score: evaluation of the robustness, cash generation capacity and future viability of the business model.
• Financing Score: analysis of equity strength and debt maturity as key indicators of stability and crisis sensitivity.

Together, these dimensions provide a concise view of both the company’s operational performance and its financial resilience. They answer the essential question: How robust is the business model – and how stable is the financing architecture that supports it?

Once this position is defined, ongoing and planned transformation projects are mapped into the model. This reveals how each initiative contributes to strengthening either the business model or the financing structure, and where gaps or additional fields of action remain.

Based on this analysis, a target scenario is developed that quantifies the impact of the transformation on the income statement, balance sheet and cash flow. This target scenario becomes the anchor for strategic alignment, prioritization of further measures and structured communication with key stakeholders.

By linking transparency with strategic direction, the company turns diagnosis into dialogue – and establishes a measurable path from short-term stabilization to long-term financial resilience.

3. When Financial Covenants Are at Risk

In times of stress, financial covenants such as leverage, equity ratio or interest coverage are often the first early-warning indicators of structural imbalance. A potential breach does not necessarily mean failure, but it must be managed with precision and foresight.

From recent restructuring cases several practical lessons can be drawn:

• Understand the implications. Especially in bilateral financing structures, one covenant breach may trigger cross-default effects in other contracts, including factoring, leasing or supplier-financing agreements. Every interdependence must be understood before entering discussions.
• Communicate early. Transparency towards financing partners should begin as soon as a breach becomes likely, not after it has occurred. Delayed communication undermines trust; proactive dialogue maintains credibility and optionality.
• Be transparent. Clearly explain the reasons behind deviations and present realistic countermeasures. Transparency builds confidence and shows that management remains in control.
• Adopt a forward-looking stance. Update the financial plan and scenario analyses early. Bankers rarely ask, “What happened?” – they ask, “What will happen next quarter?” Demonstrating foresight is the single most important trust factor.
• Safeguard liquidity. Regardless of the covenant concerned, liquidity must be ensured under all scenarios. “Cash is king” remains the guiding principle in every restructuring.
• Keep the long-term perspective. Covenant discussions are not only about short-term waivers. They are part of a broader dialogue about the company’s transformation path and future viability.

Experience shows that most banks do not terminate financing merely due to a covenant breach. Their intent is to bring management to the table and jointly evaluate options. Calm analysis, disciplined communication and a clear liquidity plan are far more effective than defensive reactions.

4. From Transparency to Action: Turning Stress into Structure

Once the initial position is clear, the focus shifts from analysis to implementation. Typical stress patterns in the automotive supplier industry include liquidity bottlenecks caused by uneven OEM call-offs and high working capital, margin pressure from rising material costs and price rigidity, investment strain due to electrification or automation, as well as tightened financing terms and covenant restrictions.

Addressing these challenges requires an integrated, interdisciplinary process that combines financial, operational and strategic measures. Key elements include:

• Liquidity planning: rolling 13-week cash forecasts to ensure solvency and negotiation capability.
• Integrated business planning: linking P&L, balance sheet and cash flow to ensure funding adequacy.
• Restructuring concepts: developing financial turnaround roadmaps with measurable milestones.
• Comparative analyses: quantifying continuation versus liquidation scenarios for stakeholder alignment.
• Operational implementation: translating financial targets into performance and footprint measures.
• Financial advisory and M&A: structuring refinancing, asset-based lending or selective divestments to restore flexibility.

This systematic approach transforms reactive crisis management into structured, data-driven decision-making.

5. Financing Transformation: The Missing Link

In many companies, restructuring and innovation are treated as separate topics, one defensive, the other offensive. In reality, however, they are mutually dependent: without innovation, restructuring remains temporary; without restructuring, innovation remains unfunded.

Automotive suppliers therefore need financing structures that support both stability and transformation. Alongside classical bank loans and syndicated facilities, alternative instruments are increasingly relevant:

• Factoring and leasing to free tied-up capital
• Asset-based lending secured by inventories or receivables
• Private debt, mezzanine or continuation funds to close equity gaps
• OEM or strategic investor participation models to stabilize critical suppliers

Integrating such elements into the financial architecture enables suppliers to fund new technologies even under pressure, thereby securing the link between liquidity, innovation and long-term competitiveness.

6. The Restructuring Advisor as a Transmission Belt for Transformation

Restructuring advisors play a crucial intermediary role between financial stabilization and strategic renewal. Their tools, from liquidity and integrated business planning to comparative analyses and operational implementation, form the transmission belt that translates financial recovery into lasting transformation.

Through structured planning, they provide a quantitative foundation for decision-making: Which product lines can be financed? Which sites are sustainable? Which investments generate the highest cash impact. By integrating refinancing and M&A processes, advisors align short-term liquidity measures with long-term portfolio strategy. They turn transparency into traction, ensuring that every step in the restructuring process contributes to the company’s future viability.

In this capacity, the restructuring advisor bridges multiple disciplines: economics, law, operations and corporate finance. The goal is not only to repair what is broken but to design a financial and operational architecture that can carry innovation. Restructuring thus becomes the operating system for transformation.

7. Continuous Transformation: Managing Change as a System

In the automotive sector, restructuring is no longer just a one-time crisis response, but a continuous management responsibility. Market volatility, technological change and supply dependencies demand permanent financial steering.

The dual perspective of business model quality and financing architecture provides a simple yet powerful framework for this purpose. It helps companies visualize where they stand, prioritize transformation projects and communicate clearly with lenders and investors. Over time, this transparency builds trust both internally and externally and becomes a key component of long-term competitiveness.

8. Conclusion: From Stress to Strength

Crisis and transformation are two sides of the same coin. Automotive suppliers that manage to quantify their financial resilience, align stakeholders and fund innovation systematically can turn pressure into progress.

Restructuring, in this sense, is not about short-term survival but about designing financial structures that enable long-term agility and competitiveness. Transparency becomes the bridge between liquidity management and innovation strategy.

Those who master this balance will not only withstand the transformation of the automotive industry but help shape its future.

Strategic Decisions on Non-Core and Loss-Making Business Units

Matthias Müller, Partner Restructuring and Finance, Dr. Wieselhuber & Partner GmbH

From Stress to Strength: Restructuring for Financial Resilience of Automotive Suppliers

Understanding the Real Position

The situation in the automotive supply industry is shaped by significant investment requirements alongside increasing financial pressure. Electrification, software integration and new platform architectures demand capital, while fluctuating call-offs, pricing pressure and a more cautious lending environment place strain on liquidity. Companies must secure stability in the short term while positioning themselves for a market that is evolving in both scale and structure.

A realistic understanding of the company’s position is essential. This means examining earnings quality, cash generation capacity, balance sheet resilience and the contribution each business unit makes to the overall strategy. It often becomes clear that pressure does not originate in the core activities but in legacy units that no longer contribute sustainably to value creation. These areas can absorb capital and management time that would be better invested in future-oriented capabilities.

When History Meets Strategy

In family-owned automotive suppliers, this can be a sensitive topic. Certain business units carry emotional significance and are associated with past phases of growth or regional responsibility. When identity and economic logic overlap, discussions can become difficult. A structured and independent viewpoint can help to realign decision-making with the long-term competitiveness of the group rather than the history of individual parts of the business.

Choosing the Path That Strengthens the Group

Once the position is clearly understood, the effectiveness of ongoing and planned initiatives can be assessed. Measures that genuinely strengthen margin resilience, operating flexibility and customer positioning matter more than incremental adjustments. Transparency across the income statement, balance sheet and cash flow reveals where targeted restructuring is necessary to prevent financial strain from spreading across the group.

At this stage, strategic options become comparable. These may include operational redesign, realignment of the product portfolio, carve-out and sale of non-core activities or a carefully managed wind-down. In situations where stability and continuity need to be secured under time pressure, or where stakeholder alignment is complex, court-supervised restructuring or the use of pre-insolvency restructuring frameworks can help preserve value. The suitability of each path depends on the specific industrial, financial and stakeholder context.

For the analysis to be meaningful, one requires a clear and comparable assessment of the available courses of action. Based on long-standing experience in financial advisory, corporate restructuring and insolvency practice, it is possible to develop a well-founded scenario evaluation that clarifies opportunities and risks, the economic impact and the strategic implications of each alternative. This provides the basis for decisions that are both transparent and aligned.

Restructuring Alone Does Not Create a Future

Reducing exposure alone does not create resilience. Companies that only scale back risk becoming increasingly interchangeable and losing pricing power. Renewal is essential. If capital released from non-core activities is used to develop new competencies, deepen technological relevance or strengthen strategic customer positions, the business regains weight and direction.

Resilience arises from two movements that must be coordinated: letting go where sustainable value creation is no longer possible and investing where the company can build future relevance. This requires practical planning, disciplined implementation and thoughtful alignment with banks, shareholders, employees and customers. Companies that manage this regain the ability to shape their own path rather than being shaped by circumstance.