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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.

2014 Jeep Cherokee facing production delay

Jeep's bold-faced new direction spearheaded by the 2014 Cherokee is facing some teething issues. According to a report by the Detroit Free Press, production start-up of the controversial new utility vehicle at its Toledo North facility is running about a month behind schedule "due to a wide range of issues." That's according to Mark Chernoby, senior vice president of engineering at Chrysler.
Chernoby maintains that the issues being encountered aren't unusual for the launch of a new vehicle - particularly one with a new powertrain - and he downplayed the delay, telling Jeep dealers that they "will have ample inventory of the midsize SUV by fall." Among the kinks being worked out? Calibrating the Cherokee's cutting-edge ZF nine-speed automatic transmission and refining assembly line tasks to make the process more efficient.
Chrysler expects to start building retail-ready versions of the Cherokee around mid-June, with official sales slated to start in September.

Reveling in the reveals: BRZ, Civic, Wrangler, QX55

It’s almost like there should have been an auto show this week. If youÂ’re an enthusiast, you know the week before Thanksgiving is when the Los Angeles Auto Show kicks off. This year, thereÂ’s no L.A. show, at least until next May. But Subaru, Honda, Jeep and Infiniti rolled out significant new products this week, making us almost nostalgic for auto shows. Serendipity, or more likely previously allocated marketing budgets, gave us a familiar feel of new products, even though we couldnÂ’t feel or touch them under the bright lights of the Los Angeles Convention Center. LetÂ’s break them down: 2022 Subaru BRZ 2022 Subaru BRZ View 62 Photos Subaru stuck to basic formula here: The 2022 BRZ remains a rear-wheel drive sports coupe thatÂ’s supremely lightweight, adequately powered and attractive. Subaru debuts its new boxer four-cylinder in the BRZ. ItÂ’s rated at 223 hp and you need to rev all the way to 7,000 rpm to achieve that output. I'd prefer a bit more than the 184 lb-ft of torque the powerplant offers (reasonably low in the band at 3,700 rpm), for some more off-the-line grunt. Say 200 lb-ft, though itÂ’s almost a cliche to argue the BRZ is underpowered.  The outgoing BRZ is one of the purest cars IÂ’ve driven, so rather than harp on the power, which will ultimately be fine, give Subaru props for focusing on chassis improvements to improve rigidity by 60 percent and aid turn-in. Admirably, the curb weight is less than 2,900 pounds, and the manual in Premium trim checks in at the lowest, just 2,815 pounds.  Aesthetically, I like it. ItÂ’s busier than before, and thereÂ’s a lot more going on with the front fascia, wheel arches and fenders. ThereÂ’s a bit of a Porsche vibe up front, which is good, and a bit of a Honda Civic vibe in back (think 2010) thatÂ’s not.  ItÂ’s impressive that Subaru resisted the urge to gratuitously power up the BRZ and remained focused on the essence of its goodness and appeal to enthusiasts. 2021 Jeep Wrangler 392 2021 Jeep? Wrangler Rubicon 392 View 75 Photos What effect will the 2021 Ford Bronco have on the Jeep Wrangler? One school of thought is that it will actually make the Jeep better, and the 2021 Wrangler 392 is proof positive that will be the case. With the Bronco attracting spectacular levels of attention, Jeep could not sit idly by and remain focused on incremental changes. It needed to make a splash.