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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: 1983 Jeep DJ-5L Mail Dispatcher

When it comes to putting mail in boxes, a simple and reliable vehicle works best. Say, a zero-frills steel box on wheels, with right-hand-drive, a fuel-efficient four-cylinder engine, no-hassle automatic transmission, sliding doors, and a big mail-sorting table instead of a passenger seat. That's what the AM General Mail Dispatcher DJ-5 was all about, and these bouncy little trucks were everywhere for decades. Here's a late-production example, still in USPS colors, spotted in a Denver-area self-service wrecking yard. Neither snow nor rain nor heat nor gloom of night stayed this courier from the swift completion of its appointed rounds. Note the "Sonic Eagle" USPS logos on the doors; this became the official USPS logo in 1993, nearly a decade after the final Jeep DJ-5s were built. Plenty of these trucks stayed in service into our current century, and a few are still being used by private mail-delivery contractors in rural areas. During the American Motors era of Jeep DJ production (1970 through 1984), a bewildering assortment of engines went into postal Jeeps. This is a 2.5-liter GM Iron Duke four-cylinder; before that, DJ-5s came with Audi power (more or less the same engine used in the Porsche 924, in fact), AMC straight-sixes, and Chevy Nova four-cylinders. The 1984 DJ-5Ms ran the AMC 2.5-liter four-cylinder. The earliest DJs were equipped with three-speed manual transmissions, but the American Motors-built postal-delivery versions all had automatic transmissions. This one has a three-speed Chrysler Torqueflite A904, a weird engine/transmission combination that should help you stump your friends during car-trivia debates. Check out the ultra-bare-bones heater/ventilation controls! These trucks were badged as AM Generals, not Jeeps (I couldn't find a single Jeep label anywhere on this one), just like the original HMMWV. However, you'd have to be a real hair-splitter to refer to this as an AM General DJ-5 instead of just Mail Jeep or Jeep DJ-5. Next time you complain about your subcompact rental car lacking driver-comfort features, consider this vehicle. I had a few high-school friends who owned DJ-5s, back in the early 1980s when they were available for a couple hundred bucks at government-surplus auctions. The first thing civilian DJ-5 owners always did was tear out the mail-sorting table and replace it with a random junkyard bucket seat (or an aluminum lawn chair). These trucks were very noisy, very bouncy, and very slow, but they always ran.

Federal grand jury issues subpoenas to U.S. FCA dealers

Despite an attempt to clarify and backtrack, it seems the investigation into Fiat Chrysler Automobile's false sales reporting is picking up steam. According to Automotive News, FCA dealers and regional offices have received subpoenas ordering them to supply documents and testimony to a grand jury in Detroit. Of course, the dealers are objecting to the request. They claim the subpoenas are too broad and would require them to hand over too much personal information, like personal phone numbers of dealer employees going back years. The group wants to make it clear that FCA has clarified its sales reporting and that the issue is with the manufacturer, not dealers. The dealers say that FCA employee records and testimony should be enough. It's rumored that a dealer group is the one that sparked the investigation in the first place. FCA confirmed on July 18 that it indeed was under investigation by a number of federal agencies. Although they've clarified their position regarding sales reporting, the fraud investigation continues full steam. Related Video: