1989 Dodge Ram Van on 2040-cars

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Lackluster Dodge Dart sales trigger layoffs

Hidden amidst the overall very positive sales figures that Chrysler released earlier this week were a few disappointments, the biggest of which may be the Dodge Dart. While Dodge sales in general were down 11 percent from a year ago, the Dart's poor figures stood out from the rest - with 4,888 units sold, the Dart was down 37 percent in February.
It comes as little surprise, then, that the automaker has announced layoffs at its assembly plant in Belvidere, IL. According to The Daily Herald, Dodge will temporarily lay off 325 workers "to balance vehicle supply with current sales demand." Put more simply, there are more Darts than buyers at the moment...
We don't think the Dodge Dart is a bad car, but it's playing in a market that offers a few standout sellers, like the Chevy Cruze, Ford Focus, Honda Civic and Toyota Corolla. According to AutoPacific analyst Dave Sullivan, as quoted by The Daily Herald, "great incentives on the Dodge Avenger" are also partly to blame for the Dart's poor showing.

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.

Porsche and Dodge lead JD Power's 2020 APEAL Study

This may sound obvious, but we'll say it anyway: if an automaker delivers exactly the ownership experience that buyers are looking for and have come to expect, they are going to score well in studies designed to measure a vehicle’s appeal. ThatÂ’s why Porsche, with a score of 881, sits at the top of all vehicle brands in JD PowerÂ’s 2020 Automotive Performance, Execution and Layout (APEAL) Study, which is designed to gauge how owners feel about their vehicles on an emotional level. And it's also why Dodge's score of 872 leads all Mass-Market brands, followed closely by corporate cousin Ram. It's worth noting that Dodge — a brand primarily known these days for packing as much horsepower into its aging lineup as possible — was also atop JD Power's 2020 Initial Quality Study (IQS) rankings, making it the first domestic automaker to lead both categories in the same year. Before we continue on with the rest of the winners and losers, we'll mention that Tesla is only unofficially included in this year's study because it did not grant JD Power permission to contact owners of its vehicles in 15 states. Still, the study includes results from surveys completed in the remaining 35 states, and if Tesla had been officially included it would have led all brands with a projected score of 896. Conversely, Tesla would have sat at the very bottom in JD Power's IQS rankings. That means Tesla owners report more problems with their vehicles than owners of any other brand, yet they still love and connect with them on an emotional level. In the Premium rankings, the top five brands were Porsche, Lincoln (876), Cadillac (874), BMW (869) and Land Rover (866). At the bottom of the Premium rankings sit Acura and Audi (tied at 845). Following Dodge and Ram (871) in the Mass-Market category are GMC (857), Ford (853) and Mini (846). Interestingly, there isn't a Japanese brand anywhere in the top five of either category, with Lexus' score of 859 only good enough for eighth spot in the Premium category. The worst performers overall were Volkswagen (832), Mitsubishi (829), Chrysler (828), Toyota (825) and Jeep (822). When asked why Jeep, a brand with a massive fanbase and desirable models like the Wrangler and Gladiator, could land at the very bottom of its rankings, JD Power's Dave Sargent explained that what people love about Jeeps is not necessarily captured in this study.