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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.

Chrysler's Jefferson North plant builds 5-millionth SUV [w/video]

Chrysler's Jefferson North Assembly Plant opened in 1992 for production of the first Jeep Grand Cherokee, but in the subsequent years, the Detroit plant has gone on to produce some of the company's biggest SUVs including the Jeep Commander and Dodge Durango. Earlier this week, the plant produced its five-millionth SUV, which, fittingly, was a Grand Cherokee.
Celebrating the plant's five-millionth unit, the silver 2014 Grand Cherokee was promptly donated to the USO. In addition to this milestone SUV, Chrysler also had a near-perfect 1993-95 ZJ Grand Cherokee on hand for the photo op. Scroll down for the Chrysler press release as well as a video showing some of the speeches from the celebration.

Rest of 2015.5 Dodge Viper lineup available after MSRP drop spurs sales uptick

The Dodge Viper has muscled its way back into buyers' good graces thanks to a $15,000 price drop across-the-board – and we're sure the extra five horsepower didn't hurt, either – posting a 26-percent year-to-date surge after the September realignment. No longer, uh, snakebitten, Dodge is now allowing dealers to place already-sold orders of the TA 2.0 Special Edition and GTS, both of which come with more goodies as standard than on the 2014 models they replace. The $101,995 TA wears a high performance Aero Package consisting of front lower dive planes, front splitter, competition rear spoiler, a dual-mode suspension supporting 18- or 19-inch matte black wheels on Pirelli PZero Corsa tires, two-piece Brembos rotors with black and orange calipers and performance pads, and a five-mode electronic stability control. We'll pretend to ignore features like a "rear carbon fiber applique" on a hardcore V10 sports car. The $107,995 GTS trim throws in Laguna leather seats as standard, an Alcantara headliner and an 18-speaker Harman Kardon system. It will also be the only model that can be had in Ceramic Blue with black stripes, orange brake calipers and GTS gloss black badging. And that rear carbon fiber applique, since it's apparently quite popular. The Connor Avenue plant where workers assemble the Viper by hand will begin production of the TA and GTS in November, the two models will appear in showrooms in Q1 of next year. A press release below has more information. Finally, it appears the only thing Connor Avenue builders looks like it finally has the work to keep everyone at work. {C} New 2015.5 Dodge Viper GTS and TA 2.0 Special Edition Models Now Available for Customer "Sold Orders" With New Pricing and More Content - Dodge Viper sales up 26 percent year-to-date since Dodge repositioned the hand-built exotic in September and reduced the starting price $15,000 - 2015 Dodge Viper's starting U.S. Manufacturer's Suggested Retail Price (MSRP) is $84,995 (all prices exclude gas guzzler tax and destination) - New 2015.5 Viper GTS and TA 2.0 models now available for sold customer orders - Track-ready Viper TA 2.0 Special Edition builds on success of TA model; U.S. MSRP starts at $101,995 and adds high-performance Aero Package, competition rear spoiler and front lower dive planes for increased downforce and improved handling on the track - U.S.