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Lackluster Dodge Dart sales trigger layoffs

Hidden amidst the overall very positive sales figures that Chrysler released earlier this week were a few disappointments, the biggest of which may be the Dodge Dart. While Dodge sales in general were down 11 percent from a year ago, the Dart's poor figures stood out from the rest - with 4,888 units sold, the Dart was down 37 percent in February.
It comes as little surprise, then, that the automaker has announced layoffs at its assembly plant in Belvidere, IL. According to The Daily Herald, Dodge will temporarily lay off 325 workers "to balance vehicle supply with current sales demand." Put more simply, there are more Darts than buyers at the moment...
We don't think the Dodge Dart is a bad car, but it's playing in a market that offers a few standout sellers, like the Chevy Cruze, Ford Focus, Honda Civic and Toyota Corolla. According to AutoPacific analyst Dave Sullivan, as quoted by The Daily Herald, "great incentives on the Dodge Avenger" are also partly to blame for the Dart's poor showing.

Chrysler extends fuel tank warranties on LX cars, NHTSA ends probe

The National Highway Traffic Safety Administration has ended its investigation of 153,817, 5.7-liter and 6.1-liter Hemi V8-powered 2006 Chrysler 300, Dodge Charger and Dodge Magnum models after reports of stalling. Chrysler has responded by granting a lifetime warranty on the fuel tanks for these vehicles.
NHTSA received 299 reports of engines stalling while the models were stopped or driving at low speeds, and began an investigation. The government agency found that the control valve shutoff float in the V8s' 19-gallon fuel tank could malfunction if the fuel had too high of an ethanol content. In many cases, the valve would break in the open position, allowing the tank to be overfilled, which would then cause the cars to stall. However, there were no accidents reported, and the vehicles could be restarted immediately.
There will not be a recall on these vehicles because, "the condition represents a low risk to motor vehicle safety and is adequately addressed by Chrysler's extended warranty," NHTSA said to The Detroit News.

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.