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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.

Ram confirms Fiat Doblo-based ProMaster City for North America

As Sergio Marchionne flies back and forth between Turin and Auburn Hills, he doesn't just bring Chryslers back with him to Italy to sell as Lancias. He also brings Fiat products to sell Stateside under various Chrysler labels, chief among them Ram.
The former Dodge truck brand launched the Fiat Ducato as the Ram ProMaster earlier this year, giving it a greater foothold in the commercial vehicle market and a replacement for the Sprinter which Mercedes-Benz took back from its Chrysler-partnership days. Now Auburn Hills has announced that Ram will begin selling the Fiat Doblo on this side of the Atlantic as the Ram ProMaster City.
The Doblo, which was twice named International Van of the Year, has sold over 1.3 million units worldwide. Whether that includes the rebadged version which Vauxhall and Opel sell as the Combo is another matter, as is the question over how much longer Fiat and General Motors will continue that particular partnership as the ties between Fiat and Chrysler deepen.

Ram forced to build and hold 1500 Classic trucks due to chip shortage

DETROIT — The impact of the global semiconductor shortage on the auto industry spread on Saturday, as Stellantis warned its highly profitable pickup trucks were hit, while Ford said it would cut more U.S. production. Stellantis, the world's fourth largest automaker, said it will build and hold for final assembly its Ram 1500 Classic trucks at its Warren, Michigan, and Saltillo, Mexico, assembly plants. When chips become available, the vehicles will be completed and shipped to dealers. The action will last "a number of weeks," a Stellantis spokeswoman said, declining to reveal how many trucks would be affected. The chip shortage, which has hit automakers globally, stems from a confluence of factors. Carmakers shut North American plants for two months during the COVID-19 pandemic last year and canceled chip orders. Meanwhile, demand for chips surged from the consumer electronics industry as people worked from home and played video games. Now carmakers must compete for chips. Carmakers have repeatedly said they will prioritize chips for their most profitable vehicles, but the impact on the Ram, as well as previous reports by Ford and General Motors of lost or impacted production of their full-size trucks, shows the shortage is hitting companies where it hurts. Stellantis Chief Executive Carlos Tavares said earlier this month the problems might not be fully resolved by the second half of 2021, as some auto rivals have flagged, describing supplies as the "big unknown" for revenues in 2021. Ford said Saturday it will idle its Ohio assembly plant next week, while its Kentucky Truck Plant in Louisville will only work two of three shifts. Both plants will return to full production the week of March 29. The U.S. automaker said the latest action is part of a prior forecast it made that the shortage could hit 2021 profits by $1 billion to $2.5 billion. On Thursday, Ford said it would assemble its flagship, highly profitable F-150 pickup truck as well as Edge SUVs in North America without certain parts and then hold them "for a number of weeks" until they can be completed and shipped, affecting "thousands" of vehicles. It also said it would idle production at plants in Louisville, Kentucky, and Cologne, Germany. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.