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China own a Detroit automaker? Would the U.S. let that happen?

The news that several Chinese automakers want to buy Fiat Chrysler Automobiles, and that one has even made an offer, elicits some mixed feelings. On one hand, as some have pointed out, it could be a win-win both for China and for FCA's American workers, ensuring the company's survival and opening new markets. On the other hand, this is China, whose trade relationship with the U.S. is the source of considerable scrutiny from the Trump administration — and whose not-a-friend, not-an-enemy status is particularly difficult to gauge right now during heightened tensions with its client state North Korea. So would such a deal pass regulatory muster? One reason that springs to mind for blocking any sale has to do with national security. Chrysler's role as a military supplier dates back to Dodge trucks used by Gen. Blackjack Pershing to chase Pancho Villa in Mexico, and shortly thereafter by American forces in World War I. The Detroit Three automakers were, of course, mainstays of the Arsenal of Democracy of World War II. Even before U.S. entry into the war in December 1941, America's industrial machinery went into overdrive, and Chrysler was one of the biggest cogs. It engineered and built the M3, Sherman and Pershing tanks and trucks for Gen. George Patton's Redball Express. It helped develop a radar-guided antiaircraft gun that knocked German bombers and V1 rockets out of the sky — on one day, shooting down 97 of 101 V1s headed for London. On D-Day, the radar system helped thwart Luftwaffe counterattacks on the beaches of Normandy, and it later helped Allied forces break out at the Battle of the Bulge. Chrysler redesigned the Wright Cyclone engines used by the Boeing B-29 Superfortress, the plane that firebombed Tokyo and dropped the atomic bombs that ended the war. Chrysler even played a secret role refining uranium in Oak Ridge, Tenn., that was used in the Hiroshima bomb and in the ensuing Cold War arms race. It worked on military missiles and was NASA's prime contractor for the Saturn V rocket that put men on the moon. More recently, Chrysler produced the M1 Abrams tank. And of course Chrysler is the keeper of the flame for Jeep, a 75-plus-years military legacy handed down from Bantam and Willys to Kaiser to AMC to Chrysler. The point of this history lesson is to note that in times of war or national emergency, America's industrial might has been called to serve, and may well be called on again.

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 is open to putting a gas engine in its EVs to meet demand

With the EV segment caught in a tug-of-war between market demand and government regulations, carmakers are having to adapt to avoid losing both money and sales. Stellantis is keeping every option on the table, including putting a gasoline engine in its electric models. Natalie Knight, the chief financial officer for Stellantis, made the announcement while presenting the carmaker's first-quarter shipment and revenues results. She cited the Jeep Wagoneer S as an example: Unveiled in January 2024, it will go on sale with an electric powertrain, but the brand hasn't ruled out expanding the lineup with a gasoline-powered model later on, according to Wards Auto. It could be a hybrid, or it might not get any type of electrification. The call will depend on whether there is "a clear demand for that in the market," the executive said. Compare that with comments from new Jeep CEO Antonio Filosa, who has said hybridizing the Wagoneer S isn't in the cards — but making a PHEV version of the all-electric upcoming Recon, however, might be. "I don't want to ignore the fact that we want to stay close to the consumer, and if we see there's an opportunity with those models that we introduced as BEVs first, we'll look into that," Knight said. Stellantis plans to launch 25 new models globally in 2024, and 18 of those will go on sale with electric power. However, that doesn't necessarily mean they'll remain electric-only throughout their production run. The brands that live under the Stellantis umbrella can build a gasoline-powered version of an EV with relative ease because many of the cars in the group's portfolio ride on a multi-energy platform. For example, the new Dodge Charger (pictured) will go on sale with an electric drivetrain later in 2024, but the range will grow with the addition of a 3.0-liter straight-six in 2025. Across the pond, the Jeep Avenger (a small, hatchback-like crossover not designed with our market in mind) was hyped as an all-electric model when it made its debut in 2023, but it quietly gained a gasoline-electric hybrid drivetrain in early 2024. The city-friendly Peugeot 208 is offered with piston or battery power, too. One of the next electric recipients of a gasoline engine might be the new-to-us Fiat 500e. The retro-styled hatchback has exclusively been available as an EV since it went on sale in Europe in 2020, but executives are reportedly looking at turning it into a hybrid due to slow sales.