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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 set to make $266M-investment into 8-speed transmission production

Chrysler will shortly make a significant $266-million investment into its Kokomo, IN transmission factory in a bid to expand production of its eight-speed automatic transmissions. The gearboxes, which are built under license from Germany's ZF Friedrichshafen, have been well received by customers and critics, and according to an SEC filing obtained by Automotive News, the transmissions will eventually find their way to all of Chrysler's rear-drive offerings (Viper and heavy-duty Ram models, aside). According to AN, a Chrysler spokesman says the investment has not been confirmed, but once it is, it'll mark the company's latest in a growing line of investments at the facility. Chrysler has poured $1.5 billion into Kokomo since 2009.

Stellantis reveals STLA Large platform with EV and ICE support

Hot on the heels of a Jeep Wagoneer S teaser and photos of the prototype next-generation Dodge Charger (or Challenger), comes a reveal and details of what will likely underpin both of them: the STLA Large platform. It's one of multiple Stellantis flexible architectures that will be the basis of its upcoming electric cars, and apparently internal combustion ones, too. Stellantis says the STLA Large platform will be for D- and E-segment cars, crossovers and SUVs. In other words, it will be for midsize and large vehicles. For reference, lengths supported will be from 187.6 to 201.8 inches, and width will range from 74.7 to 79.9 inches. It will be highly flexible, too, with Stellantis claiming significant amounts of adjustability in overhangs, wheelbase, suspension placement and powertrain arrangement. The powertrain flexibility is quite impressive. Front-, rear- and all-wheel-drive layouts will be supported. Single- and dual-motor layouts will be on offer. Internal combustion will be available, too, either on its own or as a hybrid. Apparently engines can be fitted either longitudinally or transversely, too. Battery packs with between 85 and 118 kWh of capacity will be offered, with Stellantis claiming that sedan-style vehicles could have a range of up to 500 miles. The packs will also be available in 400- and 800-volt designs. Stellantis noted also that the platform can "easily accept future energy storage technologies when they reach production readiness." This seems to hint that the company is looking at different battery chemistries and maybe even solid-state batteries that could be added more easily in the future. Furthermore, the platform is designed to handle impressive output. Stellantis says that some models on the platform will have 0-to-62 mph times in the 2-second range. Limited-slip differentials for improved power delivery and wheel-end disconnects for reduced mechanical drag are also on the table for this platform. All of these details fit well with the information previously given for the concept Dodge Charger Daytona Banshee and Jeep Wagoneer S. The former was previewed with both battery voltage architectures and a wide range of electric powertrains with between 456 and 670 horsepower depending on specification and upgrades. And that's just for the 400-volt system; the 800-volt option wasn't detailed. We've also seen photos of the Charger chassis seemingly with provisions for gas engines, likely versions of the Hurricane I6.