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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.

Weekly Recap: Jaguar takes a leap with price cut, new strategy

Jaguar was one of the famous automotive props and plotlines in the now-iconic drama Mad Men. There's a scene where the show's protagonist, Don Draper, deftly undercuts an influential Jaguar dealer by indicating that get-me-in-the-door local radio spots would be an effective way to sell cars like the slinky E-Type. The British executives think this is folly – Draper knows they will – and his advertising strategy wins out over the dealer's approach to move the metal. Jaguar's not doing that, but half a century later in the real world the company is launching plans to make its cars more attainable to new and younger customers like Millenials. These aren't coupons, but this is a leap for Jaguar, which has long banked on sexy styling and its rich motorsports history to overshadow its past mechanical flaws. Put simply, Jaguar is addressing the reasons why people, especially the younger set, don't buy its cars. The 2017 XE will start at $35,895 when it launches next spring – which makes it an attractive buy for a successful, relatively young person. When it's time to move up, the redesigned XF will be more attainable, coming in at $52,895, which is $5,275 less than the 2015 model. The flagship XJ sedan and the enthusiast-oriented F-Type sports car will also get thousands of dollars worth of added standard features, and Jag is actively pitching them as a better value than their competitors. "The Jaguar brand is on the eve of a major transformation that will see it dramatically increase its presence in the United States luxury marketplace with an expanded lineup, pricing focused on the core of the luxury market, and an all-new ownership package with best-in-class coverage," Joe Eberhardt, CEO of Jaguar Land Rover North America, said in a statement. The brand's quality and reliability dings have also lurked in the back of buyers' minds for decades, though that's an outdated notion. Jaguar placed third in J.D. Power's Initial Quality Study in June and was the top-ranked luxury brand in J.D. Power's Customer Service Index in March. Not content, the company is rolling out an enhanced program called Jaguar EliteCare that launches on 2016 models. It offers a five-year, 60,000-mile limited warranty, the longest among its competitors, with free scheduled maintenance during that period. The plan also covers roadside assistance and connectivity features.

2018 Jeep Grand Cherokee Trackhawk Drivers' Notes | Haulin' the groceries

Powered by the same supercharged Hemi at the heart of Dodge's Hellcat cars, the 2018 Jeep Grand Cherokee Trackhawk is the sort of vehicle that comes from a " Why not?" attitude from the maniacs at SRT. It's not for the faint of heart, nor for the cash-strapped. With 707 horsepower and 645 pound-feet of torque, it's capable of a 0-60 sprint of just 3.5 seconds. Its base price, however, is $86,995, though our tester's sticker totaled just a few bucks shy of $100,000. Senior Editor, Green, John Beltz Snyder: "What business does a Jeep have going 0-60 in 3.5 seconds?" This was my thought as I merged into rainy rush-hour traffic on Woodward Avenue in the 2018 Jeep Grand Cherokee Trackhawk. "Why does an SUV need to have 'Track' in the name?" I thought as I unintentionally broke the tires loose pulling away from a stoplight. I hit the "Eco" button, but the Jeep still roared with every toe-tap, and still managed to gulp down nearly a quarter of a tank of gas on my ride home. That sound, though, is amazing, and surely more unsettling to other drivers coming from such a big beast of a ute. Anyway, this Jeep feels more grown-up than other Hemi-powered vehicles I've driven. The fit and finish in this $99,000 Jeep is far nicer than, say, the Dodge Durango SRT (though at a much higher cost). If another driver didn't pay close attention to the badging, they might see this and think it just another Jeep. The sound, though, will give it away every time. Associate Editor Joel Stocksdale: If Fiat-Chrysler knows how to do anything, it's making fast SUVs, and the Grand Cherokee Trackhawk is further proof of that. And by that I mean, they know how to make them fast, and they know how to make them pleasant to drive. The Trackhawk definitely handles the fast part better than its SRT Durango and SRT Grand Cherokee cousins, what with its extra 230-odd horsepower. This big beast seriously rockets when you punch the throttle. The nose rises up, the supercharger screams, the exhaust rumbles and the speedometer ticks up much faster than you'd ever think. And it feels strong at all revs. Also impressive is that you don't have to really think when flooring it. The all-wheel-drive and fat tires offer so much grip the Jeep simply goes. The pleasant to drive part comes in the fact that the Trackhawk is very comfortable. The suspension has plenty of give, providing a good ride over pockmarked Motown roads.