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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.

Junkyard Gem: 1988 Dodge Diplomat Salon

Except for the Viper, Prowler, and some Mitsubishi-derived AWD machines, all Chrysler cars went front-wheel-drive starting in the 1990 model year and continued that way until our current century. The last holdout was the Dodge Diplomat (and its Plymouth Gran Fury and Chrysler Fifth Avenue siblings), and these cars were the most common police cruisers in America throughout most of the 1980s and well into the 1990s. You won't see many Diplomats today, but I found this high-luxe civilian Salon version in my local Denver self-service yard. This one was purchased new in Cheyenne, which is just up I-25 from Denver. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. A Diplomat was one of the automotive protagonists in the classic car-chase scene from the 1990 film, Short Time. Diplomats have figured heavily in many films over the years. I got my first driver's license in 1982, in a Navy town with ruthless Diplomat-equipped traffic-law enforcement, and so my right foot still twitches in the direction of a brake pedal when I see this grille. This one was full of Denver-centric ephemera from the early-to-middle 1990s, layered with the shredded paper and rodent poop that indicates long-term outdoor storage, so I'm guessing that the car's elderly owner stopped driving it 20 years ago and it sat until finally evicted by an angry landlord. These cars weren't known for being particularly quick in stock form. This one has the carbureted 318-cubic-inch V8 (yes, some cars still had carburetors as late as 1988), good for 140 horsepower. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Fiendishly seductive! Related Video:

FCA plants skipping summer shutdown to keep up with demand

Hopefully, some FCA US factory employees don't have big plans for the usual summer shutdown, because the automaker is keeping several plants running this year. Demand is so high that the company wants to keep models rolling off the assembly lines. Four FCA US assembly plants, all the engine factories, and some locations that build transmissions are staying open throughout the summer, according to the Detroit Free Press. Usually, these sites would see a two-week shutdown for the company to retool and perform repairs. This year, factories are staying open for FCA to support its strong sales. The lines that remaining humming through the summer show an inclination toward the automaker's popular SUV's and crossovers. They include the Jefferson North Assembly Plant in Michigan that builds the Jeep Grand Cherokee and Dodge Durango; Saltillo Van Assembly in Mexico that constructs the Ram ProMaster; Toledo Assembly Complex in Ohio that produces the Cherokee and Wrangler; and Toluca Assembly in Mexico that makes the Dodge Journey and Fiat 500. Related Video: News Source: The Detroit Free PressImage Credit: Bill Pugliano / Getty Images Plants/Manufacturing Dodge Fiat Jeep RAM FCA dodge journey fca us ram promaster Jefferson North Assembly Plant