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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.

Next Dodge Challenger to be electrified, says FCA boss

Dodge is the last of Detroit's Big Three to truly keep the muscle car purpose and heritage alive with the Challenger and Charger. As the Mustang and Camaro have transitioned to sports car-like experiences, the high-horsepower Dodges have stuck to their guns as straight-line behemoths with little intention of competing with the others in corner carving. People still dig the old-school-cool of cars like the Challenger, as sales actually went up while Mustang and Camaro sales took a hit in 2018. That said, new FCA boss Mike Manley said things will be changing in an electric way for the next generation, in a report by The Detroit News. "The reality is those platforms and that technology we used does need to move on. They can't exist as you get into the middle-2020s. New technology is going to drive a load of weight out, so we can think of the powertrains in a different way. And we can use electrification to really supplement those vehicles." News of electrified muscle cars is nothing new at this point. Ford says it's going to reveal a Mustang Hybrid in 2020. And with Al Oppenheiser (former chief engineer for the Camaro) moving to GM's electric division, you better believe Chevrolet is working on an electrified version of the Camaro. This, however, is the first solid evidence we have that FCA and Dodge are making such a move. What Manley said next is something we all know to be true, but a bit heartbreaking nonetheless. "I think that electrification will certainly be part of the formula that says what is American muscle in the future. What it isn't going to be is a V8, supercharged, 700-horsepower engine," Manley says. Even if it's a bit silly, we all love the Hellcat for its 707 horsepower V8. Clearly, plenty of other people do, too, because Dodge keeps cranking out more insane versions of the car with the Redeye and Demon. As for how much electrification Dodge's muscle car will receive, Manley wouldn't go into detail. Though he does say that electrification "can't be the dominant part." This should provide some solace to all those worried the gasoline engine could disappear from the American muscle car. Just as Dodge is reluctant to stray from the original intent of the muscle car, it's not hard to imagine the Challenger/Charger being the last to go full-electric. Gas engines supplemented by 48-volt systems or plug-in hybrids will most likely be the end result when we first see electrified Challengers.

Chrysler Group moves around execs in wake of recent departure

Chrysler is busy shuffling executives around in the wake of Ram head Fred Diaz's departure. The automaker has named Reid Bigland (pictured, right) as Diaz's successor in the role of president and CEO of Ram, though Bigland will continue his duties as the head of US sales and the president and CEO of Chrysler Canada. Bigland first came to Chrysler in 2006 from Freightliner Custom Chassis Corporation, so the guy knows a thing or two about trucks.
Meanwhile, Timothy Kuniskis will take over as president and CEO of Dodge. Previously, he served as the head of Fiat in North America and has been with Chrysler in one capacity or another since 1992. His old title now falls to Jason Stoicevich, who will also continue to work as the director of the automaker's California Business Center. Finally, Bruno Cattori will take over as the president and CEO of Chrysler Mexico.
Diaz left his position to take over as a divisional vice president of sales and marketing with Nissan. You can read the full press release on the Chrysler personnel changes below for more information.