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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.

China own a Detroit automaker? Would the U.S. let that happen?

The news that several Chinese automakers want to buy Fiat Chrysler Automobiles, and that one has even made an offer, elicits some mixed feelings. On one hand, as some have pointed out, it could be a win-win both for China and for FCA's American workers, ensuring the company's survival and opening new markets. On the other hand, this is China, whose trade relationship with the U.S. is the source of considerable scrutiny from the Trump administration — and whose not-a-friend, not-an-enemy status is particularly difficult to gauge right now during heightened tensions with its client state North Korea. So would such a deal pass regulatory muster? One reason that springs to mind for blocking any sale has to do with national security. Chrysler's role as a military supplier dates back to Dodge trucks used by Gen. Blackjack Pershing to chase Pancho Villa in Mexico, and shortly thereafter by American forces in World War I. The Detroit Three automakers were, of course, mainstays of the Arsenal of Democracy of World War II. Even before U.S. entry into the war in December 1941, America's industrial machinery went into overdrive, and Chrysler was one of the biggest cogs. It engineered and built the M3, Sherman and Pershing tanks and trucks for Gen. George Patton's Redball Express. It helped develop a radar-guided antiaircraft gun that knocked German bombers and V1 rockets out of the sky — on one day, shooting down 97 of 101 V1s headed for London. On D-Day, the radar system helped thwart Luftwaffe counterattacks on the beaches of Normandy, and it later helped Allied forces break out at the Battle of the Bulge. Chrysler redesigned the Wright Cyclone engines used by the Boeing B-29 Superfortress, the plane that firebombed Tokyo and dropped the atomic bombs that ended the war. Chrysler even played a secret role refining uranium in Oak Ridge, Tenn., that was used in the Hiroshima bomb and in the ensuing Cold War arms race. It worked on military missiles and was NASA's prime contractor for the Saturn V rocket that put men on the moon. More recently, Chrysler produced the M1 Abrams tank. And of course Chrysler is the keeper of the flame for Jeep, a 75-plus-years military legacy handed down from Bantam and Willys to Kaiser to AMC to Chrysler. The point of this history lesson is to note that in times of war or national emergency, America's industrial might has been called to serve, and may well be called on again.

Junkyard Gem: 2007 Dodge Caliber SXT with 5-speed manual transmission

When DaimlerChrysler unleashed the Caliber as a Neon replacement for the 2007 model year, the American car-buying world was put on notice that cute transportation appliances would be kicked to the side by the hobnailed boots of a new generation of angry, brutish, truck-influenced transportation appliances. The Caliber sold well enough at first, but eventually blurred into the fleet-car background noise and got shoved aside by the Alfa-derived Dart after 2012. Since I'm always on the lookout for super-rare three-pedal cars while I'm poking around in junkyards, I check out discarded Calibers in the hope of spying such a machine. This work paid off when I spotted this first-model-year '07 in a Northern California yard last month. In fact, the 5-speed manual transmission came as standard equipment on the non-R/T Calibers in 2007, but nearly every Caliber buyer opted to get the continuously variable automatic instead. That odd-looking horizontal shifter rod reminds me of the one in the early-1970s Honda 600. One reason I check out junkyard Calibers is that I'm trying to find a Boston Acoustics "MusicGate" speaker box, an optional rig that went on the inside of the hatch, to use in my next car-parts boombox project. I haven't managed to find one yet, but I'm not giving up. This car is a luxurious SXT, the trim level that squeezed between the bare-bones SE and the high-zoot R/T. When you bought the SXT, you got the pimp-grade Chill Zone™ (a beverage compartment with internal air-conditioner ducts) as standard equipment. Now this rare Caliber sits among the discarded PT Cruisers and Avengers of the yard's Chrysler section, on the flight path of the big C-5s heading into Travis Air Force Base. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Dodge's marketers tried hard to make the Caliber look tough, even murderous, the kind of car that would use an old Polara bumper jack to beat cuddly cartoon characters to death in a spray of flying teeth and blood-spattered fur. If all Calibers had come with manual transmissions, perhaps this macho image would have stuck better than it did. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Silly little fairy!