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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.

2019 Dodge Challenger SRT Hellcat Redeye priced $14,000 below Demon

Steve Beahm, head of Passenger Car Brands at Dodge, SRT, Chrysler, and Fiat, told Motor Trend that the 2019 Dodge Challenger SRT Hellcat Redeye is "a Hellcat that's been possessed by a Demon." Turns out the Hellcat Redeye was also possessed by The Ghost of Great Deals. Dodge just released pricing for the Challenger line, the crimson-eyed terror at the top starting at $69,650, which is $13,645 less dear than the $83,295 MSRP for the 2018 Challenger SRT Demon. The asterisk: the Redeye needs the same $1,345 destination charge and $1,700 gas guzzler tax as the 2018 Demon, so the difference still holds once you get the Redeye off the dealer lot. The final tally: $72,995. Torque News acquired a copy of the Challenger dealer order guide, and options on the Hellcat Redeye will run you a little more than the bucket of $1 options on the Demon. Among the list, the summer performance tires add $695, the optional 3.09 rear axle adds $1,095, a painted black hood costs $1,995, and the Widebody package adds $6,000 for it's extra 3.5 inches. According to TN, you can run a standard Hellcat Redeye up to almost $90,000, and push a widebody to $95,000. The standard Challenger SRT Hellcat gets touched by the bargain bogeyman, too: the price goes down by $5,645 for 2019 to $58,650, even though it's been uprated by ten horsepower to 717 hp, and by six pound-feet to 656 lb-ft. Out-the-door price after a $1,700 gas guzzler tax and $1,345 destination fee is $61,695. Before including destination, there's a long way down to the next model, the 485-horsepower Challenger R/T Scat Pack at $38,995. Buyers who choose the six-speed manual for this trim will pay a $1,000 gas guzzler tax. The V6-powered, 305-hp Challenger GT in two-wheel drive starts at $29,995. Sending power to all four of the GT's wheels needs $32,995 before destination. The base model, two-wheel drive SXT gets the Challenger doors open at $27,295, the all-wheel drive model costing $30,295. Related Video:

Buick takes top spot in 2022 J.D. Power Initial Quality Study

People, economies, and supply chains weren't the only things continuing to get sick over the past year. The 2022 J.D. Power Initial Quality Study (IQS) is out, showing the average rate of problems per 100 vehicles (PP100) during the first 90 days of ownership increased overall. The average figure for the 32 ranked manufacturers in 2020 was about 166 problems per 100 vehicles. In the 2021 IQS, that dropped to an average of 162. This year, the average jumps to 180 problems. J.D. Power says that figure is a record high over the 36-year history of the study. Buick leapt to the top of the rankings this year with the fewest issues, at 139 problems per 100 vehicles in the first 100 days of ownership. After Dodge became the first American automaker to lead the IQS in 2020, followed by Ram in 2021, this year marks a three-peat for U.S. carmakers. Dodge took second this year at 143 PP100, Chevrolet third with 147 PP100, Genesis the first luxury maker on the chart in fourth with 156 PP100. Between February and May, this year's study gathered responses to 223 questions from more than 84,000 new 2022-model-year car owners and lessees. The questions are designed to zero in on real-world problems new owners encounter with nine categories of vehicle features: Infotainment; features, controls and displays; exterior; driving assistance; interior; powertrain; seats; driving experience; and climate. As has been the case in the past few year, infotainment has proved to be the most problematic bugbear making scores worse. Considering features individually, six of 10 of the worst problem areas dealt with infotainment, causing infotainment's score of 45 PP100 to be 19.5 PP100 worse than the second-placed feature. Consumers ranked getting Android Auto and Apple CarPlay to connect reliably as the most troublesome.  GM didn't just score with Buick, which was one of only nine of the 33 ranked brands to show improvement this year. The conglomerate earned first place with the fewest PP100 among all the automaker groups, and scored the most model-level awards with nine, ahead of BMW with eight and Hyundai Group with three.  This year's study again showed a gap between luxury and mass-market makers, thought to be down to the amount of tech in luxury vehicles that consumers aren't properly informed about or that doesn't act as expected — that latter issue exacerbated by the chip shortage.