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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.

Jay Leno gets his denim mitts on Dodge's new Challenger Hellcat

The 2015 Dodge Challenger SRT Hellcat is definitely the performance car of the moment. The fact that in the near future, people will be able to buy a 707-horsepower muscle machine straight from a major automaker for $59,995 and with a factory warranty almost seems absurd. We drove it recently and found the Hellcat to be just as much of a beast as its numbers would suggest. Now, it's a certain comedian's turn behind the wheel in the latest episode of Jay Leno's Garage.
This week's guest is Dodge President and CEO Tim Kuniskis, and he's there to drop all sorts of interesting factoids about the Hellcat. For example, its Pirelli P Zero tires retail at around $300 each, he says. That makes its smoky burnouts a rather expensive proposition. Kuniskis, who recently hinted at a mystery Woodward Dream Cruise debut, also talks about the genesis of the 2015 SRT project with a goal to get over some of the standard Challenger's weight and size disadvantages. The fix is a supercharged V8, massive brakes and other goodies to smooth over the platform's more glaring shortcomings.
Leno appears to get a big kick out of the Hellcat. However, he can't seem to stop bringing up his desire to drive one with a six-speed manual. They obviously exist, but Kuniskis has an eight-speed automatic for the retired Tonight Show host to try out. Of course, as with any Hellcat video, there has to be at least one burnout. Despite the expensive tires, it seems like enthusiast's law at this point - and dear ol' Jay wouldn't want to break any rules, would he?

The Dodge Demon was developed under a cloud of smoke

The Dodge Demon needs no introduction. The car is so full of superlatives that most of it sounds unbelievable until you see and hear it in action. The car was revealed after months of teasers and cryptic messages, but the public weren't the only ones in the dark. From the start, the Demon's development was a closely guarded secret. There were even some within SRT that didn't know about the project. The people behind the car went through a lot of effort to keep it that way. At an event covering the finer details of the Demon's supercharged 6.2-liter V8, Dodge CEO Tim Kuniskis and SRT Powertrain Director Chris Cowland spoke about the smoke and mirrors used to hide the Demon's development. Work on the car progressed for nearly two years before it was made public, with just a small team having full access to the project. Numbers were altered. Secret meetings were held. SRT engineers worked nights and weekends while parts suppliers were given as little information as possible to move progress forward. Preliminary work on the Demon began in April of 2015, not long after the standard Hellcat hit the streets. The goal wasn't to create a faster Hellcat. Kuniskis said that would have been easy. They wanted a single-minded vehicle that could also be driven on the road. It's the same mindset that brought about the Dodge Viper ACR. Dodge wanted a car that could sell the brand to both enthusiasts and non-enthusiasts alike. 840 horsepower is going to raise anyone's eyebrows, including the Camry owner parked down the street. While preliminary work started in April, the final greenlight wasn't given until September. The project was originally going to revive the American Drag Racer, or ADR, name. When we saw the first hints of the Demon last fall, we labeled the spy photo above the Dodge Challenger ADR. It was set to have 10-percent more power and 20-percent more launch force than the already gut-punching Hellcat. It was also only going to have a quarter-mile time in the 10s, just slightly quicker than the Hellcat. Somewhere along the line, the team realized that the ADR wasn't enough. It was just going to be a Hellcat plus, and that wasn't exciting. The main goal was changed: 9s with light. Translated, that means a 9-second quarter mile with light under the tires (read: a wheelie). From that point forward, everything about the Demon's development, from power to suspension to weight, would be done in pursuit of that goal.