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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.

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

Rivian R1T faces first competitive test in Rebelle Rally

Not long ago, the Rivian R1T electric pickup engaged in a very public bit of development testing as a support vehicle for "Long Way Up" — the trip Ewan McGregor and Charlie Boorman took on Harley Davidson LiveWire electric motorcycles from Ushuaia, Argentina, to Los Angeles. Next month, the R1T enters the realm of competition testing by competing in the Rebelle Rally, the all-female navigation rally held over 10 days and 1,243 miles in the sandy, rocky hinterlands of California and Nevada. The team behind the wheel will be pilot Emme Hall and navigator Rebecca Donaghe, who won last year's Rebelle Rally driving the then-new Rolls-Royce Cullinan. This is the first year in the Rebelle's five-year history that there will be a pure electric vehicle. A Mitsubishi Outlander PHEV will be the only other entrant flying the electrified flag. To welcome the battery-electric pickup and any other electrified runner that wants to join in the future, rally organizers have arranged a battery-powered mobile charging system to be deployed along the course. It's not clear which battery and motors the Rivian will house, but the top spec would provide a 180-kWh pack, up to 750 horsepower, and a range of more than 400 miles in normal conditions. The race will help Rivian hone the pickup's off-road credentials, the brand's creative director saying, "Adventures like the Rebelle Rally are what Rivian vehicles are made for." The Rebelle isn't a timed rally, so the point isn't to beat up the R1T with marathon stints on the throttle. As a navigation rally, competitors aim acquire points by hitting certain checkpoints, making strategy key. The ability to clamber over and through whatever's in the way won't hurt, either, a technique aided by the R1T's height-adjustable suspension that provides 14 inches of ground clearance on its tiptoes. The ability to do tank turns might also come in handy. The Rivian will prove itself by placing, or teach important lessons by falling out. All of this is a necessary step for a manufacturer selling "electric adventure vehicles." There are only two classes in the Rebelle Rally, Crossover and 4x4. Crossovers can be two-wheel drive or all-wheel drive, and can have unibody construction but no low-speed transfer case. The 4x4 class is traditional off-roaders with a low-speed transfer case, ranging from the Jeep Wrangler to the Range Rover.