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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.

Marchionne impressed by 'that kid' Elon Musk

FCA boss Sergio Marchionne has a reputation as an incredibly canny businessman. Some examples of his acumen include finishing Fiat's takeover of Chrysler from a beachside home and winning a challenge with Luca di Montezemolo for the reins of Ferrari. The Italian exec recently took a trip to California and lavished praise on Elon Musk after a meeting with the Tesla CEO. Although, the compliment did come off as a little patronizing. "I'm incredibly impressed with what that kid has done," Marchionne said to Reuters about his conversation with Musk. Unfortunately, the FCA exec didn't go into detail about what he and Tesla boss discussed. Although, calling the 43-year-old billionaire a "kid" does seem a little rude, especially given Musk's success with Paypal, in the auto industry and at SpaceX. While in the Golden State, Marchionne also had a talk with Apple CEO Tim Cook. Although, he was similarly cagey about what the men discussed. "He's interested in Apple's intervention in the car, that's his role," Marchionne said to Reuters about the conversation without divulging more. The two companies already have some small links thanks to Ferrari's use of the tech giant's products. As one additional highlight for Marchionne's California trip, he took a ride in the Google autonomous car. News Source: ReutersImage Credit: Paul Sancya / AP Photo Green Chrysler Fiat Tesla Green Culture Technology Emerging Technologies Autonomous Vehicles Electric Sergio Marchionne FCA

SRT belatedly claims Plymouth Prowler as one of its own

Before Chrysler had Street and Racing Technology, it had Performance Vehicle Operations. What the two entities have in common, before SRT became its own brand, of course, is that each was created to take Chrysler and Dodge (and Plymouth, before it was unceremoniously killed off) vehicles to the next level of style and performance.
We'll leave the question of whether or not the old Plymouth (and later Chrysler) Prowler was ultimately a stylish, performance-oriented car to you, but the boys and girls currently leading the SRT charge at the Pentastar headquarters are keen to accept the retro-rod into the fold.
According to the automaker, all of SRT's current high-performance models owe a debt of gratitude to the old Prowler, due mostly to that car's use of lightweight bits and pieces and innovative construction techniques. If nothing else, the fact that the Prowler's frame is "the largest machined automotive part in history" is pretty cool. Read all the details here.