2016 Jeep Wrangler Unlimited Willys Wheeler on 2040-cars

Auto blog

NHTSA boss Strickland weighs in on Jeep recall fracas

Adding yet another chapter to the ongoing Jeep recall story, the National Highway Traffic Safety Administration (NHTSA) head David Strickland has gone on record to defend the government's request that Chrysler recall 2.7 million out-of-production Jeep Grand Cherokee and Jeep Liberty vehicles after the agency investigated fiery rear-end collisions that have reportedly killed at least 51 people over the years. In statements made to The Detroit News, Strickland said, "We felt very strongly that the process that we undertook and the findings that we made and ... we made the decision to issue a recall request. We do not take that very lightly." The top US auto safety regulator stopped short of telling owners to park their cars until the automaker takes action. "They can make their own risk assessment and their own choices," he said.
Chrysler does not intend to recall the models, insisting the "vehicles met and exceeded all applicable requirements of the Federal Motor Vehicle Safety Standards, including FMVSS 301, pertaining to fuel-system integrity" when they were manufactured and sold. "The company does not agree with NHTSA's conclusions and does not intend to recall the vehicles cited in the investigation. The subject vehicles are safe and are not defective," Chrysler announced last week in a statement. "We believe NHTSA's initial conclusions are based on an incomplete analysis of the underlying data, and we are committed to continue working with the agency to resolve this disagreement."
Legally, Chrysler has until June 18 to formally respond to NHTSA's request. If the automaker does not take action, NHTSA is expected to issue a formal finding and seek a recall.

Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.

Jeep Wagoneer, Grand Wagoneer, and pickup confirmed for production, all built in the US

Jeep has confirmed some much-anticipated future models: a new Wagoneer and Grand Wagoneer as well as a pickup truck, which we expect to be based on the Wrangler. FCA has also announced where these new vehicles be produced, the investment involved, and that adding the models will create 2,000 American jobs. The Wagoneers will be built at FCA's Warren Truck Assembly Plant in Michigan, which currently produces the Ram 1500. The overhaul required to add the Jeeps will also set the plant up to build Ram Heavy Duty models, which are currently made in Mexico. (It's not clear whether this would be additional Heavy Duty capacity or a complete move of production of those trucks to the US.) The confirmed Jeep pickup will be built at the Toledo Assembly Complex in Ohio as expected. This is the same plant that builds Wranglers today and will produce the new JL Wrangler that the pickup version is expected to use. View 30 Photos All of these factory upgrades are part of a $1 billion investment by FCA. The retooling is scheduled to be completed by 2020, which means these models are likely to come online for the 2021 model year, which jibes with the rumors that the Wagoneers have been delayed. That the large Jeeps will be built at the plant that currently produces Ram 1500s also leads us to believe that they will in fact use a version of the Ram truck platform instead of being built off the Grand Cherokee platform as originally planned. The timing of this announcement and its mention of Mexico and US jobs may have something to do with recent talk from President-elect Trump about US auto industry jobs and possible tariffs to be imposed on vehicles built across the border. Marchionne says these plans have been in discussion "for some time" but it's not clear what that timeframe was. Trump has targeted Ford, General Motors, and Toyota in recent tweets but has stayed quiet on FCA. While the announcement may have been political in nature, Jeep fans will no doubt welcome the news of the returning nameplates and the long-awaited pickup model. Related Video: Featured Gallery 2019 Jeep Grand Wagoneer Dealer Leak Spy Shots Jeep Crossover SUV Luxury Off-Road Vehicles jeep wrangler pickup