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FCA to invest $4.5B for new Detroit plant, expanded production at current facilities

We expected some shifts in manufacturing plans as Fiat Chrysler plans to begin electrifying its Jeep brand, but this news bodes well for Michigan. FCA announced today that it would spend $4.5 billion to expand production in the state, including building a new assembly plant in Detroit and increasing capacity at five other facilities in the state. The plan, which FCA says will create nearly 6,500 new jobs, will help to meet increasing demand for Ram and Jeep products, and to electrify Jeep models. $1.6 billion will be set aside to transform the Mack Avenue Engine Complex into a site to build the next generation of Jeep Grand Cherokee, as well as an unspecified, new three-row Jeep model. FCA says this part of the plan will create 3,850 new jobs. FCA is increasing its investment in the Warren Truck plant to $1.5 billion in order to continue building the Ram 1500 Classic, as well as the new Jeep Wagoneer and Grand Wagoneer, creating 1,400 new jobs. FCA says that the new Ram 1500 Heavy Duty will still be built in Saltillo, Mexico. At FCA's Jefferson North facility, the automaker will invest $900 million to upgrade the plant. This site will continue to build the Dodge Durango, as well help build the next Jeep Grand Cherokee. FCA expects this to create 1,100 new jobs. As Jeep plans to electrify models in its SUV lineup, each of the above plants will produce plug-in hybrid versions of the Jeep models produced there, "with flexibility to build fully battery-electric models in the future," the company said in its announcement. "Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations," said FCA CEO Mike Manley, referring in part to earlier investments in Illinois, Ohio and Michigan. "Today's announcement represents the next step in that strategy," Manley continued. "It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles." Other investments include $119 million to move production of the 3.0-, 3.2- and 3.6-liter Pentastar engines from Mack I to the Dundee Engine Plant, and $400 million for increased capacity and 80 new jobs at the Sterling and Warren stamping plants. This comes at a time when FCA's U.S.

Are we about to see a real SUV revival?

Now that the marketplace has been oversaturated with cute-utes, crossovers, and CUV coupes, are we about to see a resurgence of real, honest-to-God SUVs? Ummm... maybe. The stars seem to be aligning in that direction, at least that's the sense I'm getting. We know an all-new Jeep Wrangler is only a few auto shows away; and that Jeep is about to introduce a new Grand Cherokee Trailhawk for 2017, in the same rugged spirit of the successful Cherokee and Renegade Trailhawks. Ford has hinted at a neo-Bronco, after showing the concept above in 2014 to wet the mouths of all those Duck Dynasty-types out there. And, and... wait for it... I recently learned that Subaru sent a questionnaire out to some Forester owners asking if they might be interested in an off-road package if it were offered. The items listed were pretty hardcore, serious stuff, such as: integrated tow/recovery hooks, additional ground clearance, more rugged wheels, skid plates, altimeter, front-view off-road camera, improved approach and departure angles, advanced differentials, Inclinometer, full-size spare tire, upgraded off-road suspension components, more aggressive tires, off-road driving mode (engine, transmission, throttle, and steering settings), more rugged styling, low-range gearing, and a more advanced traction management system. Folks that's not my wish list (well, actually it is), but those are words from Subaru, asking if that's what customers would like to see. Need proof? Go to the SubaruForester.org website. It's in a discussion there. So... no promises or guarantees here, and feel free to call me a rumormonger if you like; but the next few years could prove very interesting for those who actually do go off road. If this pans out, remember, you read it here first. Related Video: Image Credit: Ford Ford Jeep Subaru Crossover SUV Off-Road Vehicles open road

Jeep Gladiator was designed as an outdoor lifestyle tour de force

LOS ANGELES — It's been more than 30 years since the last Jeep Wrangler-based pickup went out of production. And it's been more than a dozen years since a modern Jeep Wrangler-based pickup concept first taunted us with its chunky bed-shaped behind. But today, America's signature off-road brand has finally unveiled the production version of a Jeep Wrangler-based pickup. And it looks, rather predictably, like a four-door Jeep Wrangler with an open box in the back. (From some angles, it also looks like a Jeep that is towing itself.) "There were some key drivers that the designers had to work around," says Timothy Kuniskis, head of Jeep North America. "We wanted to not just go after Wrangler buyers, but after truck buyers. So this vehicle had to have four doors, four real doors. But the big thing was the bed. We know our consumer, the one who will be interested in this truck, and for them, it had to be the width of an ATV and the depth of two dirt bikes, so that dictated the size of the bed." This new trucklet is called the Gladiator, which is a departure from the name of the previous Wrangler-based pickup, the Scrambler. The Gladiator name does have Jeep heritage, having been the moniker of the full-size truck the brand sold from the mid-1960s to the early '70s. Since nomenclature is key in defining product and perception, we would be remiss if we did not note the key semantic differences between the names. A Scrambler is a go-getter (or resolutely confusing.) A Scrambler is nimble and scrappy. A Gladiator, on the other hand, is about vanquishing and conquest, and is typically gigantic. A Gladiator is domineering. Having only seen the photos, it was difficult to tell how big this thing is. Luckily, we've now seen it in person, and it is indeed big, but not huge. "It's a midsize pickup, a segment that is exploding now. Tacoma is and has been the dominant player in the category, but with GM coming back in and the Ranger joining soon, and now us, we're going to see this category get to 500,000 units a year very soon," says Kuniskis. "Everything that psychologically drives a consumer to a Wrangler, there's a sub-segment of those buyers whose needs push them toward a pickup. These aren't people who are going to fill the bed with mulch and boulders. It's not a work truck. It's absolutely a lifestyle choice. These are people who are into surfing, mountain biking, dirt bikes, side-by-sides." Jeep is in an interesting position from a design perspective.