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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.

2015 Chrysler 300 swaggers into LA Auto Show [w/video]

The Chrysler 300 has always exuded a certain brashness, but the chip-on-its-shoulder styling seemed to mellow a bit after its 2011 redesign. Now, the bad boy of the premium sedan segment is getting some of its angry attitude back for 2015, and the refreshed model debuted here at the Los Angeles Auto Show. The grille is larger, the fascia is updated and the lights are redesigned. That doesn't seem like much, but when taken collectively, they give the car a more menacing glare. The inside is freshened with a new seven-inch in-cluster display, better-quality materials and an updated suite of available Uconnect features, and there's a bevy of new active safety features available, too. The engine line continues with the 3.6-liter V6 and the 5.7-liter V8, though they are now both paired with Chrysler's eight-speed automatic. The sedan also received a Sport mode button, which changes the tuning for the steering, engine and transmission, while providing a rear bias for all-wheel drive models. Pricing starts at $31,395, just as it did for the 2014 model. The lineup also gets a new Platinum model with special wood, chrome and leather finishings, though the company also has said it will discontinue the 300's high-performance SRT variant for in the United States. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. New 2015 Chrysler 300: Return of the Big, Bold American Sedan with World-class Levels of Sophistication, Craftsmanship and Technology, Once Again Putting Boulevards and Interstates On Notice The new 2015 Chrysler 300 highlights six decades of ambitious American ingenuity through iconic design proportions inspired by historic 1955 and 2005 models – world-class quality, materials and refinement, best-in-class V-6 highway fuel economy, plus segment-exclusive innovations – all at the same $31,395 starting price as its predecessor.

Marchionne defends FCA recalls, says Wrangler won't be all-aluminum

FCA CEO Sergio Marchionne recently received the 2015 Industry Leadership Award from the SAE Foundation. While speaking with the press after the event, the boss discussed his thoughts about some key issues regarding the company's future. One of the big regulatory issues facing FCA at the moment is the upcoming public hearing by the National Highway Traffic Safety into the automaker's handling of 20 recalls. Marchionne has no intention of testifying there, according to The Detroit News. The CEO also thinks that the government regulator is becoming much more aggressive in how it handles safety campaigns, but the Feds aren't necessarily doing a very good job of communicating that. "We need to work with the agency in a very cooperative and open way to make sure that we can meet their requirements for their new stance," he said, according to the newspaper. "We have no option but to comply with their requirements and we will. I have nothing to hide in this process. I just want clear rules." Marchionne also dropped the news that the company has changed its mind about making the next Jeep Wrangler totally from aluminum. "Because of the difference in cost, not just the new material but the actual assembly process, I think we can do almost as well without doing it all-aluminum," he said to The Detroit News. This seemingly opens the door for the model to remain in production in Toledo, OH, but only just a crack. Marchionne says that the new Wrangler would still use a large amount of aluminum, and there are "at least" two sites in contention for the assembly. The company doesn't have too long to make a decision because the model reportedly launches in 2017.