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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.

2016 Ram 3500 Heavy Duty now offers 900 lb-ft of torque

After last year's bump to a massive 865 lb-ft of torque for its 2015 3500 Heavy Duty pickup, Ram certainly isn't taking a rest. The model already offers the best towing capacity and most torque in its class, but both figures are growing even higher for the 2016 model year. Now, customers that really need some grunt can order the Cummins 6.7-liter inline-six diesel in the 3500 with a staggering 900 pound-feet of torque and 385 horsepower. Ram claims that this huge figure is the most torque ever available in a mass production vehicle, and it tops the 2015 model by a healthy 35 lb-ft. The added grunt comes thanks to adjustments to the fuel delivery and the turbo's boost, and to better handle things, the rear axle gear now is held with 16 bolts, rather than 12. The tweaks also push the tow rating to an SAE J2807-certified 31,210 pounds, which is absolutely monumental. While not available with the 900 lb-ft version of the Cummins, the Ram 2500 also sees a tiny boost in its max tow rating. The trucks are now capable of hauling up to 17,980 lbs, versus 17,970 lbs last year. The 2016 Ram Heavy Duty trucks go into production in the third quarter and should start arriving at dealers during the fourth quarter of 2015. Prices for the 3500 start at $33,185 and $32,680 for the 2500, after the $1,195 destination charged, respectively. The company hasn't yet announced the cost for the 3500 with the 900 lb-ft Cummins diesel. 2016 Ram Heavy Duty Widens its Leadership Gap With a Triple-decker Presence: Best-in-class Power, Towing Capacity and Payload Capacity • 2016 Cummins 6.7-liter calibration hits a best-in-class 900 lb.-ft. of torque. The most torque ever offered in a mass-production vehicle • 2016 Ram 3500 crushes the competition with up to 31,210 pounds of SAE J2807-spec.

Chrysler says its 8-speed transmissions will save 700 million gallons

Chrysler Group's TorqueFlite eight-speed transmission could be earning some serious green bragging rights if the company's projections are correct. The recently widely proliferated automatic gearbox, which is now in more than a million vehicles around the world, is poised to save drivers an estimated 700+ million gallons of fuel over the vehicles' lifetimes (an expected cost savings of $2.5 billion). In addition, Chrysler expects a reduction in CO2 emissions by more than six million metric tons. According to Chrysler, and depending on the vehicle, the TorqueFlite can improve fuel economy. The TorqueFlite autobox features particularly close ratios from fifth to eighth gear (see the press release below for the specific numbers), and uses low-viscosity fluid that doesn't need to be replaced. Transmission software adapts to the driving situation to optimize efficiency based on driver behavior, temperature, grade, stability control, and longitudinal and lateral acceleration. The TorqueFlite is capable of handling a variety of duties. As evidenced by the wide range of vehicles Chrysler Group has seen fit to equip with the eight-speed transmission, the TorqueFlite is capable of handling a variety of duties. Since its 2012 introduction, the TorqueFlite has gone from performing cog-swapping duties in Dodge Charger and Chrysler 300 models equipped with the 3.6-liter Pentastar V6 to changing gears in vehicles such as the Pentastar- and Hemi-powered Dodge Durango, Jeep Grand Cherokee and even the Ram 1500 EcoDiesel. For the 2015 model year, the eight-speed is finding its way into even more vehicles with the addition of a third version. In addition to the American-made TorqueFlite 845RE and 8HP70, the new 8HP90 will be manufactured in Saarbrucken, Germany. The 8HP90 is designed for higher torque loads, making it ideal for high-performance vehicles like the 2015 Dodge Challenger SRT Hellcat. The already-in-use 8HP70 will expand its duties to be used in 2015 Hemi models such as the Dodge Charger, Challenger, and Challenger SRT8. You can see the list of those benchmarks in Chrysler's press release below.