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FCA to invest $4.5B for new Detroit plant, expanded production at current facilities

We expected some shifts in manufacturing plans as Fiat Chrysler plans to begin electrifying its Jeep brand, but this news bodes well for Michigan. FCA announced today that it would spend $4.5 billion to expand production in the state, including building a new assembly plant in Detroit and increasing capacity at five other facilities in the state. The plan, which FCA says will create nearly 6,500 new jobs, will help to meet increasing demand for Ram and Jeep products, and to electrify Jeep models. $1.6 billion will be set aside to transform the Mack Avenue Engine Complex into a site to build the next generation of Jeep Grand Cherokee, as well as an unspecified, new three-row Jeep model. FCA says this part of the plan will create 3,850 new jobs. FCA is increasing its investment in the Warren Truck plant to $1.5 billion in order to continue building the Ram 1500 Classic, as well as the new Jeep Wagoneer and Grand Wagoneer, creating 1,400 new jobs. FCA says that the new Ram 1500 Heavy Duty will still be built in Saltillo, Mexico. At FCA's Jefferson North facility, the automaker will invest $900 million to upgrade the plant. This site will continue to build the Dodge Durango, as well help build the next Jeep Grand Cherokee. FCA expects this to create 1,100 new jobs. As Jeep plans to electrify models in its SUV lineup, each of the above plants will produce plug-in hybrid versions of the Jeep models produced there, "with flexibility to build fully battery-electric models in the future," the company said in its announcement. "Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations," said FCA CEO Mike Manley, referring in part to earlier investments in Illinois, Ohio and Michigan. "Today's announcement represents the next step in that strategy," Manley continued. "It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles." Other investments include $119 million to move production of the 3.0-, 3.2- and 3.6-liter Pentastar engines from Mack I to the Dundee Engine Plant, and $400 million for increased capacity and 80 new jobs at the Sterling and Warren stamping plants. This comes at a time when FCA's U.S.

Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

Dodge adds fire-breathing Durango SRT for 2018

The playbook for Dodge right now is pretty simple. Wring as much power out of as many things as humanly possible. Now comes the 2018 Dodge Durango SRT. Packing 475 horsepower and 470 pound-feet of torque, this seven-seat school bus will scoot to 60 miles per hour in just 4.4 seconds. Since the latest Durango launched for 2014, Dodge has unabashedly called it a three-row Charger. This beefy SUV makes that aggressive claim even more legit. "It does all the things we want a performance car to do," says Mark Trostle, head of performance, passenger, and utility vehicle exterior design. "It really is our three-row Charger." The 6.4-liter (392 cubic inches) Hemi V8 is considerably stronger than the already-potent 5.7-liter Hemi V8, which is rated at 360 hp and 390 lb-ft in the most powerful Durango available now. The SRT powertrain includes the TorqueFlight eight-speed automatic transmission used in the lesser Durango models (and many other FCA US vehicles), though it's calibrated specifically to the sportier demeanor of the SRT model. A similarly retuned full-time all-wheel-drive system rounds out the powertrain. Despite the fact this is a hot-rod SUV, it can still tow 8,600 pounds with a trailer, 1,200 pounds more than the most capable 2017 Durango (the rear-wheel 5.7-liter variant). View 9 Photos The Durango SRT is an obvious move for Dodge. The Jeep Grand Cherokee, which is built on the same platform in the same factory in Detroit, already has an SRT model. With rumors of a Hellcat-powered Grand Cherokee swirling and another Demonic Challenger on the way, the Durango was overdue for an engine upgrade. "When we launched the Durango in 2014, this is the one we really wanted," says Tim Kuniskis, head of FCA US' passenger car brands. There's no doubt this is an enthusiast-oriented SUV. Dodge even went to the trouble of certifying the Durango SRT's 12.9-second quarter-mile time with the NHRA and tested it a Virginia International Raceway. Buy a Durango SRT, and you get a full day at the Bob Bondurant School of High Performance Driving. When's the last time anyone did all of that with a three-row ute? It certainly looks the part. The hood bulges with new air-ducts to help keep the big Hemi chilled appropriately. There's a new front fascia with more air vents and LED fog lamps. Plus, the grille takes on a menacing new glare with a mesh pattern, and the body gets wider wheel flares. Click through the gallery, it really does look like a Charger from some angles.