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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.

Dongfeng and PSA extend Chinese joint venture

BEIJING/PARIS — China's Dongfeng and Peugeot maker PSA are extending their business cooperation, despite the Chinese company reducing its stake in PSA to help smooth the French carmaker's merger with Fiat Chrysler Automobiles (FCA). Dongfeng said on Thursday it had agreed with PSA to extend the duration of their joint venture Dongfeng Peugeot Citroen Automobiles (DPCA). Under the deal, the venture could get the rights to PSA's new brands in China and will benefit from new technologies and intellectual properties, the Chinese company said. PSA was not immediately available for comment. The announcement comes a day after the companies said Dongfeng would reduce its 12.2% stake in PSA by selling 30.7 million shares to the French company. Analysts said the move could smooth U.S. regulatory approval for PSA's roughly $50 billion (GBP38.97 billion) merger with Italian-American carmaker FCA. The sale of Dongfeng's shares in PSA, worth around 680 million euros ($757 million), will leave the Chinese group holding around 4.5% of the merged PSA-FCA, which is set to become the world's fourth-biggest carmaker by sales volumes. "As the cooperation between Dongfeng and PSA deepens, we expect the joint venture to continue making good progress in China," a Dongfeng representative said. On a conference call, Dongfeng said DPCA would have exclusive rights to PSA's Opel cars should the partners agree to bring the brand to China, and enjoy lower prices on car parts imported from PSA. Earlier this year, a document seen by Reuters showed Dongfeng and PSA plan to cut jobs at Wuhan-based DPCA and reduce its number of car plants to try to make the venture more profitable. Chrysler Dodge Fiat Jeep RAM Citroen Peugeot China FCA PSA Dongfeng

2018 Jeep Wrangler to get full-time four-wheel-drive option

It appears the next-generation Wrangler will take another small step to modernization and civility. JL Wrangler Forums reports that the new Wrangler is showing up on dealer computers along with a variety of options. One of them is the inclusion of a full-time four-wheel-drive system called Selec-Trac. This means that it will be possible to simply leave the Wrangler in four-wheel drive all the time, without worrying about damaging it when pavement is dry, much like the all-wheel-drive systems on most modern crossovers. This might concern Wrangler purists, but there are a couple of reasons not to fret. For one, although Jeep doesn't have a Selec-Trac system on the market to compare to right now, the old Selec-Trac system offered on the Jeep Liberty had a low-range for off-roading, so this one probably will, too. For another, only one kind of Wrangler will offer this feature, according to JL Wrangler Forums. The Selec-Trac system will only be available on the four-door Wrangler Unlimited Sahara, the version that's arguably the most luxurious, and the body-style with the longest wheelbase. All the others will only have the classic selectable four-wheel drive. There is another interesting feature noted in the JL Wrangler Forums collection of information. Apparently the four-cylinder engine will have a combination starter and generator driven by a belt. This is interesting, because the only other car we've seen with such a component is the new Audi A8. In that application, the belt-driven starter and generator is used for smoother, faster starting and stopping to save fuel. We would guess the Jeep's system works in a similar way, though likely without the support of a 48-volt electrical system. We will likely know more when the new Wrangler makes its debut, which is expected at the L.A. auto show this year. Related Video: Featured Gallery 2018 Jeep Wrangler Spy Shots Related Gallery 2018 Jeep Wrangler Hood Spy Shots News Source: JL Wrangler ForumsImage Credit: KGP Photography Jeep SUV