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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.

Fiat diesels might also cheat emissions tests

Et tu, Fiat? Fiat is the latest automaker to come under suspicion for excessive emissions from its diesel vehicles. So far the trouble is only in Germany, as opposed to VW's trouble in multiple countries. And instead of using VW's method of installing software that identifies when the car is undergoing an emissions test and only then turning on emissions control devices, Fiat is running out the clock. Because the German emissions test lasts around 20 minutes, Fiat is accused of having its NOx emissions control systems operate only for the first 22 minutes when the car starts up. This potential new bombshell was first reported by Bild am Sonntag, a German newspaper. Bild says that the Italian automaker is under investigation by German authorities after a test of a 500X revealed this time-based method. Bild also says that Bosch tipped off the German authorities about Fiat's strategy. German transport minister Alexander Dobrindt released a report of new tests of 53 diesel cars and highlighted Fiat's numbers, saying, "We will need to carry out further tests on Fiat models." In February, the environmental lobby group DUH found that a 500X that had been running for a while emitted more NOx than one with a cold engine. Fiat said at the time that it had conducted an internal review and found that its diesel engines comply with the law. Of course, thanks to VW's diesel scandal implosion last fall, questions have been emerging from regulators around the world about diesel emissions from passenger vehicles. Mitsubishi was recently suspected of diesel emission irregularities in Japan. A recent lawsuit in the US accuses Mercedes-Benz of using a cheat device. Greenpeace has raised questions about the testing method that German authorities are using to test diesel vehicles. And on and on and on. Related Video: News Source: ReutersImage Credit: Sajjad Hussain/AFP/Getty Images Government/Legal Green Fiat Diesel Vehicles vw diesel scandal diesel emissions fiat 500x 500x

Fiat Chrysler posts record Q3 profit thanks to U.S. trucks and Jeep

MILAN — A rebound in car production in Fiat Chrysler on Wednesday reported record third-quarter earnings as production returned to nearly pre-pandemic levels. The Italian-American automaker, which is finalizing its full merger with French rival PSA Peugeot, reported a net profit in the three months ending Sept. 30 of $1.4 billion (1.2 billion euros). That compares with a loss of 179 million euros a year earlier. The carmaker reported adjusted earnings before tax and interest in North America of 2.5 billion euros. That offset deepening losses in Europe, Asia and at its Maserati luxury marquee. Latin America, the only other region to post a profit, saw it narrow by two-thirds to 46 million euros. “Our record results were driven by our teamÂ’s tremendous performance in North America,” CEO Mike Manley said in a statement. Overall, the carmaker said global earnings before tax and interest were a record 2.3 billion euros despite a 6% fall in revenues to 26 billion euros. Global shipments were down 3%, due largely to plant retooling in North American to produce the new Jeep Grand Wagoneer in the luxury SUV segment and the discontinuation of the Dodge Grand Caravan classic minivan. Fiat Chrysler announced earlier Wednesday that its merger with PSA Peugeot is on track to be finalized by the end of the first quarter of 2021, as planned. To meet regulatory concerns, the French carmaker is selling a small stake in a components maker to get below 40% ownership. The new automaker, to be called Stellantis, will be the fourth biggest producer in the world. Earnings/Financials Chrysler Dodge Fiat Jeep RAM Citroen Peugeot