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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.

VW Golf R, Ram Power Wagon and Subaru Forester | Autoblog Podcast #591

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski and Road Test Editor Reese Counts. After some talk about sponges and other randomly received oddities, this episode is all about the cars we've been driving, including the new Subaru Forester, VW Golf R (which is going on hiatus), BMW M340i xDrive and Ram Power Wagon. Then, they take to the mailbag to help a listener pick a sporty new car in the "Spend My Money" segment. Autoblog Podcast #591 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Sponges, really? 2019 Subaru Forester Sport 2019 Volkswagen Golf R 2020 BMW M340i xDrive 2019 Ram 2500 Power Wagon Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:  

Ram 1500 TRX thunders across the desert ahead of August 17 debut

Ram turned every head at the 2016 edition of the Texas State Fair when it introduced a 1500-based, Hellcat-powered concept named Rebel TRX. Nearly four years later, it's finally ready to unveil the production version of its burly truck, which will seemingly lose the Rebel designation while keeping the supercharged V8. Aimed directly at the Ford F-150 Raptor, the 1500 TRX — an acronym which stands for Tyrannosaurus Rex; get it? — will arrive as a high-performance truck that feels right at home speeding through the desert. Although the preview video released by Ram hides the truck's overall design, it's reasonable to assume it will receive a rugged look characterized by a model-specific front bumper that increases the approach angle, skid plates that protect the underbody, and massive tires tucked under fender flares. It will be bigger and meaner than the standard 1500. It will sound the part, too, thanks to a version of the supercharged, 6.2-liter Hellcat V8 engine found in several Dodge and Jeep models. Although the concept made 575 horsepower, insiders (and spy videos shot on the Silver Lake Sand Dunes) hinted the production model will put over 700 horses under the driver's right foot. Ram will introduce the 1500 TRX online on August 17 at noon Eastern time, which is 9 a.m. in Los Angeles. It will stream the event on its various social media outlets (including its Facebook account and its YouTube channel). Sales will start in the coming months, but pricing information hasn't been announced yet. We expect the TRX will be pegged in the same price bracket as the F-150 Raptor, which starts at $55,150 including destination. And, while Dodge will only manufacture the Hellcat-powered Durango for six months, we'd be surprised if the 1500 TRX lands as a limited-edition model. Odds are Ram plans to fill every order it receives. Related Video:     RAM Truck Performance