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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.

2022 Ram 1500 Laramie now offers Front Lighting Value Package

Were Audi dealers onto something with their Semiconductor Shortage Package? A few days ago, we posted about the Ingolstadt brand's cars adorned by Monroneys featuring the aforementioned package. That line item summarized the vehicle's missing features thanks to global semiconductor woes, and how much money had been subtracted from the MSRP because of the exclusions. Now, Mopar Insiders reports that the Build & Price tool for the 2022 Ram 1500 Laramie includes a Front Lighting Value Package. Choosing the option swaps the Laramie's standard-fit LED headlights and fog lights for halogen headlights and fog lights, saving buyers $495. The image above is a side-by-side of trucks configured with the standard LEDs (left) and the halogens (right). Playing around with the configurator, it appears the change can't be ordered with the Laramie's standard 3.6-liter Pentastar V6. When attempting to add the value package, a dialogue box requires choosing one of the two optional 5.7-liter Hemi V8 engines or the 3.0-liter V6 EcoDiesel, and one of the 8HP75 eight-speed automatic transmissions fitted to those three engines. The Pentastar comes with the 850RE eight-speed auto.  Thankfully, the Front Lighting Value Package is an option; you can get all the way to the end without selecting it. Nevertheless, we're intrigued by the order constraints. Seems to us that a buyer happy with the entry-level engine might prefer to save some dosh on the headlights, as opposed to buyers spending either $2,795 for a V8 Hemi or $4,995 for the oil-burner. And that's before one considers the savings. The luxury-oriented Laramie trim sits in the lineup $9,000 above the Bighorn, $7,000 below the Limited Longhorn. Swapping the standard halogen headlights and fog lights on the Bighorn to LED units costs $995 for the Premium Lighting Group, the discount to take LEDs off the Laramie is half that. Getting aftermarket LED headlights for the Laramie would cost at least $300, and that's before the hassle of install and questions of quality. So where is the point in saving $500 for objectively worse lighting that will likely cost more to add later? As if it needed saying again: These are strange days. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Ram 2500 Power Wagon POV drive

FCA CEO Mike Manley will run Americas for Stellantis after PSA merger

DETROIT — Fiat Chrysler CEO Mike Manley will run operations in the Americas when his company merges with FranceÂ’s PSA Peugeot early next year. FCA Chairman John Elkann announced ManleyÂ’s new post on Friday in a letter to employees. ManleyÂ’s role in the merged company had been a mystery. PSA CEO Carlos Tavares will run the overall company, to be named Stellantis. Shareholders of both companies will vote on the merger Jan. 4 to seal the deal creating the worldÂ’s fourth-largest automaker. The merger is expected to be completed by the end of March. PSA will get six seats on the new companyÂ’s 11-member board, which will be chaired by Elkann. The Americas, especially the U.S., are key to the new companyÂ’s success. Fiat ChryslerÂ’s Jeep and Ram brands are highly profitable, and Tavares has long wanted to sell PSA vehicles in the U.S. Manley has been the Italian-American automakerÂ’s CEO for 2 1/2 years, taking over when Sergio Marchionne died in 2018. Stellantis will have the capacity to produce 8.7 million cars a year, just behind Volkswagen, the Renault-Nissan alliance and Toyota. Related Video: Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot Mike Manley Stellantis