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FCA goes all-in on Jeep and Ram brands on cheap gas bet

It's no surprise that as SUV and truck sales remain strong in the wake of unusually cheap gas, Jeep and Ram sales are taking off. What is a surprise is that FCA CEO Sergio Marchionne thinks that cheap gas will be a "permanent condition," and feels strongly enough about it to change up North American manufacturing plans. Jeep appears to be the biggest beneficiary of the product realignment. In addition to increasing the sales estimates for the brand worldwide upwards to 2 million units a year by 2018, the brand will get a flood of investment for new product and powertrains. Consider the Wrangler Pickup to be part of the salvo, as well as the Grand Wagoneer three-row announced in 2014 as part of the original five-year plan. The Wrangler four-door will get at least two new powertrains, a diesel and mild hybrid version, in its next generation. That mild hybrid powertrain may utilize a 48-volt electrical system like the one that's being developed by Delphi and Bosch – which the suppliers think will be worth a 10 to 15 percent fuel economy gain at a minimum. Down the road, in the 2020s, the Wrangler could adopt a full hybrid system. The diesel powertrain is planned for 2019 or 2020. The Ram 1500 is also pegged to receive a mild hybrid system, again potentially based on 48-volt architecture, sometime after 2020. Lastly, Jeep and Ram will take over some of the production capacity of existing plants. The Sterling Heights, MI, plant that builds the Chrysler 200 will now build the Ram 1500; the Belvidere, IL, facility that produces the Dodge Dart will take over Cherokee output; the big Jeep facility in Toledo, OH, will be used for increased Wrangler demand. In 2015, according to FCA's numbers, car and van demand went down by 10 percent, but SUV demand went up 8 percent and truck demand 2 percent. Considering that these are high-margin vehicles, FCA can't ignore the math. FCA also won't build any new factories to supplement production to meet demand, but instead are reshuffling production priorities. Think of it this way: FCA is gambling on cheap gas being a permanent part of our lives, at least into the 2020s. By doubling down on SUVs and trucks, the company stands to win big, unless a spike in gas prices changes the landscape. FCA isn't talking about a Plan B, so they're all in. It'll be interesting to see how this plays out.

How to update and secure a vulnerable Chrysler Uconnect system

If you own one of the 1.4 million vehicles affected by the recent Chrysler software recall, you may want to watch this video. In it, we explain how to get the latest infotainment software loaded onto the 8.4-inch Uconnect system. The recall was a response to the findings of researchers who were able to hack into and remotely control a 2014 Jeep Cherokee through its cellular connection. Although Fiat Chrysler has worked with Sprint to plug most of the holes on the carrier side, there are still some vulnerabilities that only this latest software version can patch. Owners have three options to get the update: download it now, wait for a USB stick in the mail, or take the vehicle to an FCA dealer. Chrysler will be sending USB sticks loaded with the software update to customers. Anyone with an internet connection and a USB stick of their own with at least 4 GB capacity can speed things up by downloading the patch from the Uconnect website. We cover that process from start to finish in the video, with the final portion still applicable to those using the FCA-supplied USB stick. If after watching this you still don't want to tackle the patch yourself, you can take your vehicle to the dealer to have it done. Also note that this process is the same for all Uconnect updates, not just the one patching the exploits. Our demonstrator vehicle is a 2015 Ram 1500 pickup. The procedure should be very similar on other products with the 8.4-inch Uconnect system, with only the location of the USB port varying. Once you have the USB stick with the software on it – either after having downloaded it yourself or receiving it in the mail from Chrysler – the installation process is relatively simple. It takes about 15 minutes to perform the update; we edited out the wait in the video. To check whether or not your car's 8.4-inch Uconnect system is running the latest software, go to System Information on the touch screen's Settings page and look at Software Version. The update related to the recall is version 15.17.5. Related Video: Recalls Chrysler Dodge Jeep RAM Safety Technology Infotainment Videos Original Video hacking

Fiat buying rest of Chrysler in $4.35 billion deal, IPO avoided

Chrysler will now become a wholly owned member of the Fiat family, as it's been announced that the 41.46-percent stake in the Auburn Hills, MI-based manufacturer owned by the United Auto Workers' VEBA trust fund will be sold to the Italian company. Concluding the agreement will mark the closure of a piecemeal purchase process that could have resulted in an initial public offering.
The total cost of the sale will see the VEBA healthcare trust receive $4.35 billion, $3.65 billion of which will come from Fiat. $1.75 billion of that will be cash, while an additional $1.9 billion will be part of a "special distribution." An additional $700 million will be paid over four separate installments according to reports from Automotive News Europe and USA Today, although the shares will belong to Fiat following the first payment. The deal was reportedly initially struck on Sunday (though it is just being announced today), and is being portrayed as particularly good news for Fiat and Chrysler, which have now prevented the remaining shares going to the stock market in a UAW-forced IPO.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Fiat CEO Sergio Marchionne said in a statement.