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2019 Ram 1500 pickup production problems costing FCA $300M to fix

Fiat Chrysler is spending more than $300 million to fix production issues with the new 2019 Ram 1500 pickup as the plant where it's built is running below capacity and suppliers reportedly struggle to keep up with building it and the 2018 version simultaneously. The truck's ramp-up is well behind schedule, Automotive News reports. FCA's Sterling Heights Assembly plant in Michigan began building the pickup in mid-January but is running at only 60 percent capacity, CEO Sergio Marchionne said on an earnings call last week. Sources told the publication the plant is still undergoing construction and was building about 1,000 trucks per day toward a run rate of 1,400 per day. It's operating two 10-hour shifts per day, seven days a week, with plans to keep the factory running every weekend and holiday through Labor Day to meet production targets. More than 2,500 of the new pickups were reportedly awaiting unspecified electrical repairs before they could be shipped. FCA could use the boost from the heralded new 2019 Ram 1500, which figures prominently in its aggressive annual financial goals. The company is relying on the previous-generation 2018 Ram 1500, demand for which has been sagging. First-quarter sales of the pickup are down almost 13 percent year over year to 103,964, according to carsalesbase.com figures. Meanwhile, sales of Ford's F-Series pickups over the same period rose 4 percent to 214,191, while Chevrolet Silverado sales have climbed 5 percent to 135,545. Dealers have started receiving deliveries of the 2019 Ram 1500, but only the version fitted with the 5.7-liter V8. The EPA has yet to issue fuel economy ratings for the standard 3.6-liter Pentastar V6 paired with the eTorque 48-volt mild hybrid system, nor the same system mated with the V8. As we noted in our recent First Drive review, upgrading to the (non-hybrid) V8 costs $1,195, which is actually $255 cheaper than before. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: FCA Plants/Manufacturing RAM Truck sales

Stellantis earnings rise along with EV sales

AMSTERDAM — Automaker Stellantis on Wednesday reported its earnings grew in 2022 from a year earlier and said its push into electric vehicles led to a jump in sales even as it faces growing competition from an industrywide shift to more climate-friendly offerings. Stellantis, formed in 2021 from the merger of Fiat Chrysler and FranceÂ’s PSA Peugeot, said net revenue of 179.6 billion euros ($191 billion) was up 18% from 2021, citing strong pricing and its mix of vehicles. It reported net profit of 16.8 billion euros, up 26% from 2021. Stellantis plans to convert all of its European sales and half of its U.S. sales to battery-electric vehicles by 2030. It said the strategy led to a 41% increase in battery EV sales in 2022, to 288,000 vehicles, compared with the year earlier. The company has “demonstrated the effectiveness of our electrification strategy in Europe,” CEO Carlos Tavares said in a statement. “We now have the technology, the products, the raw materials and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024.” The automaker is competing in an increasingly crowded field for a share of the electric vehicle market. Companies are scrambling to roll out environmentally friendly models as they look to hit goals of cutting climate-changing emissions, driven by government pressure. The transformation has gotten a boost from a U.S. law that is rolling out big subsidies for clean technology like EVs but has European governments calling out the harm that they say the funding poses to homegrown industry across the Atlantic. Stellantis' Jeep brand will start selling two fully electric SUVs in North America and another one in Europe over the next two years. It says its Ram brand will roll out an electric pickup truck this year, joining a rush of EV competitors looking to claim a piece of the full-size truck market. The company plans to bring 25 battery-electric models to the U.S. by 2030. As part of that push, it has said it would build two EV battery factories in North America. A $2.5 billion joint venture with Samsung will bring one of those facilities to Indiana, which is expected to employ up to 1,400 workers. The other factory will be in Windsor, Ontario, a collaboration with South KoreaÂ’s LG Energy Solution that aims to create about 2,500 jobs. The EV push comes amid a slowdown in U.S.

Ram helps power Chrysler to 11% gain in May

Increasing consumer demand for Ram pickup trucks and big SUVs has helped to boost May sales for Chrysler. Ram sales were up a total of 24 percent year-over-year for the month of May. In addition, Dodge sales increased by 23 percent in May, with the standout Durango clocking a 24-percent year-over-year improvement (with an updated 2014 model in the wings, incentives are thick on the ground for 2013 inventory). Fiat and Jeep were up only a modest one percent, however, and Chrysler brand sales were down by two percent against last year's figures.
Chrysler is quite pleased overall with brand performance, saying that this May marks the company's strongest in the past six years. It was also the 38th consecutive month showing year-over-year sales gains.
Eight of the automaker's vehicles set sales records for May, as well: Jeep Wrangler and Compass, Dodge Avenger and Challenger, Fiat 500, Chrysler 200 and Ram pickups. Scroll down to read more detail in Chrysler's press release.