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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.

Hyundai reportedly eyeing a takeover of FCA

The CEO of Hyundai Motor Group plans to launch a takeover bid for Fiat Chrysler ahead of the planned retirement of FCA Chief Executive Sergio Marchionne next spring, Asia Times reports, citing unnamed sources close the situation. CEO Chung Mong-koo will wait for an expected decline in the Italian-American automaker's shares to make his move. Hyundai isn't commenting on the rumors, unsurprisingly, but would presumably stand to benefit by gaining Chrysler's dealer network and the lucrative Jeep brand and probably Ram, too. An FCA spokeswoman in Auburn Hills told Autoblog the company had no comment. But like any story about a possible takeover, this one gets complicated with inside players — and President Trump's posturing on international trade issues. FCA has been the subject of takeover interest before, including by Hyundai, but Marchionne has denied a merger was likely, instead saying his company was in talks with the Korean automaker about a technical partnership. In 2015, Marchionne lobbied General Motors hard, but unsuccessfully, for a tie-up; he was also spurned by Volkswagen. Marchionne had repeatedly stressed the need for car companies to merge to decrease overcapacity and better afford the massive investments needed for things like autonomous and electric vehicles. In the case of Hyundai's reported interest, there is a cast of characters. One is Paul Singer, principal of the hedge fund Elliott Management, an activist shareholder with a $1 billion stake in Hyundai and a major owner of equities in Fiat's home turf of Italy. Then there is FCA Chairman John Elkann, who reportedly disagrees with Marchionne on a successor as CEO of Fiat Chrysler but has little interest in running the company himself and would prefer a merger. Compounding things is what the Trump administration would think of a further blending of Fiat Chrysler's international DNA, though a deal with a Korean automaker is thought to be more palatable to the president and members of Congress than by a Chinese conglomerate like Great Wall Motor, which has confirmed its interest in taking over all or parts of FCA. The full Asia Times piece is here. Related Video: News Source: Asia TimesImage Credit: REUTERS/Rebecca Cook Chrysler Fiat Hyundai Jeep RAM Sergio Marchionne FCA merger takeover

Ram heavy-duty trucks look more conservative than new Ram 1500

We've had a pretty good peek at the 2019 Ram 1500 thanks to spy shots and renderings. (UPDATED January 2018: Here's the full reveal from the Detroit Auto Show.) And from what we've seen of it, it's a major departure from Rams of the past. We haven't seen as much of the Ram heavy-duty line, but these spy shots caught one out on the town, and it appears the Ram 2500 and 3500 will have a less controversial design. The big-rig tall grille is still the truck's focal point, but the design is a familiar one, featuring the same look featured on the current Ram's luxurious range-topping trims like the Ram Laramie Longhorn. We'll have to wait to see if the new heavy-duty trucks will continue to use this grille solely for range-topping trims and if the 1500's new look will venture up to its big brothers, and therefore banish the crosshairs for good. Regardless of the grille design, the headlights still sit fairly low next to it. That emphasizes the semi-truck design since the tops of the fenders are lower than the top of the hood, which cascades to meet said fenders. The headlights also look potentially carry-over. Really, there are so many similarities it leads us to believe the new heavy duty might be more of a refresh than a completely new design. Another interesting thing to note is that this Ram appears to use a similar drivetrain and suspension to the current heavy-duty trucks. Like the vast majority of trucks, it has a solid rear axle, but probably with coil springs as Ram currently does. Up front, though, it seems the solid front axle has also been retained. This should be good news for fans of the off-road-ready Power Wagon. We're probably still a ways away from seeing the heavy-duty Rams. Last year, we learned a rumor that the heavy-duty trucks were delayed for an unspecified amount of time. We wouldn't expect to see anything official about the truck until at least 2019, about a year after we expect to see the 2019 Ram 1500 revealed. Related Video: Featured Gallery Ram Heavy Duty spy shots View 16 Photos Image Credit: KGP Photography Spy Photos RAM Truck