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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.

Fiat Chrysler expands Takata airbag recall to 3.3M vehicles

Fiat Chrysler Automobiles is expanding its recall of vehicles equipped with Takata airbags, moving beyond Florida, Hawaii, Puerto Rico and the US Virgin Islands to the greater US, as well as Mexico, Canada and beyond. The affected vehicles, some 3.3 million in total, were built between 2004 and 2007, with many models, including the Dodge Ram 1500, 2500 and 3500, Durango and the Chrysler 300, having been affected by Chrysler's previous recall. Despite the somewhat alarming nature that comes with a recall of this many vehicles, it seems that Chrysler is moving more out of an abundance of caution (and federal pressure) than anything else, saying: "Neither FCA US, nor Takata Corporation, the supplier, has identified a defect in this population of inflators. These components also are distinct from Takata inflators cited in fatalities involving other auto makers. More than 1,000 laboratory tests have been performed on these components. All deployed as intended, but FCA US continues to study the suspect inflators, which are not used in the Company's current production vehicles." Owners of affected vehicles will be notified and asked to report to dealers for a free replacement driver's side airbag. Scroll down for the official press release from FCA. Statement: Global Air-Bag Inflator Replacement December 19, 2014 , Auburn Hills, Mich. - FCA US LLC will replace driver's-side air-bag inflators in an estimated 3.3 million older-model vehicles worldwide, in an expansion of an ongoing regional field action. Neither FCA US, nor Takata Corporation, the supplier, has identified a defect in this population of inflators. These components also are distinct from Takata inflators cited in fatalities involving other auto makers. More than 1,000 laboratory tests have been performed on these components. All deployed as intended, but FCA US continues to study the suspect inflators, which are not used in the Company's current production vehicles. Outside of Florida, one of the areas covered by the original action, no FCA US vehicle has been linked to an air-bag deployment of the type that has raised public concern. Nevertheless, the Company is replacing the Takata components tied to that concern. FCA US is aware of one related injury involving one of its vehicles, an older-model sedan. It occurred in a southern Florida region marked by persistent, high, absolute humidity – a condition believed to be a contributing factor in the air-bag deployments under investigation.

This or That: 2005 Dodge Ram SRT-10 vs. 2005 Subaru WRX STI [w/poll]

Some cars, due to ultimate desirability, particular rareness, or spectacular performance/prestige eventually become collectible. It's darn near impossible to know which ones will make it into the rarefied stratosphere of collectibility – why is a late 1960s AMC AMX so affordable these days, whereas prices for late '70s Pontiac Trans Ams are soaring? – but there are some useful indicators to keep tabs on. We're not exactly experts on investing, but we do know cars. As such, we've decided to take our non-expertise on one hand, combine it in the other with our knowledge of all things automotive, wad it up, throw it out and ask for your forgiveness. Or something like that. I've challenged Senior Editor Seyth Miersma to choose a car he thinks will become a future collector's item that's not more than 10 years old, and for no more than $25,000. I've done the same, and we vigorously argued for and against each other's picks. I feel good about my choice, but I don't have the best track record in these contests (I've lost three times, won twice, but they've all been pretty close), so, while I'm not going to beg (please vote for me!), I do hope you find my argument convincing. But first, let's hear from Seyth: Miersma: Ten-years old or newer makes this challenging. At that age most vehicles feel like a plain old used car to me, few hit the "classic" button. But the Subaru WRX STI has always been a special car, and the 2005 cutoff year proves to be very attractive for the parameters of our contest. It's rare; with fewer than 5,000 STI models sold that model year. It's probably the best looking WRX STI ever sold in America; narrowly avoiding the dreadful "horse collar" front fascia. And it's got one of the more die-hard car-geek followings out there. For $25,000, you can also still find examples that have reasonable miles, are in good condition, and haven't all been molested by grown-up Initial D wannabes. With the street racers hacking up collectable examples every day, I like my odds for steep appreciation by way of conservation. I couldn't agree more. It really is difficult to predict what cars will catch the eye of collectors, and the WRX STI seems like a pretty good choice. But I think mine is even better, and I can't let him know that I'd love to park just such an STI in my very own garage. And so goes my argument: Korzeniewski: I like your choice as a driver, Seyth. I'm less convinced of its status as a sure-fire collectible.