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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.

The Ram Macho Power Wagon concept is totally in your face with its cool rack system

The Ram brand isn't being very subtle with this year's SEMA concept. It's called the Macho Power Wagon, and it's painted in Macho Mango. Yeah, it's for dudes. We apologize if you start hearing a Village People song in the back of your head. This bigger, badder Ram is a throwback to the Macho Power Wagon of the late 1970s. Along those lines, it bears the retro, vertical Power Wagon graphics that line the C-pillar, and it also has vintage-style eight-spoke beadlock wheels inspired by its '70s namesake. Those wheels are shod in huge 37-inch tires, which fit thanks to a four-inch suspension lift, and custom, conceptual fender flares. View 20 Photos The truck is powered by the normal Power Wagon's 6.4-liter V8, rather than the crazy TRX concept's supercharged Hemi, and it has the stock front winch. This Ram also sports quite a few concept parts besides the wheels and fender flares. Starting at the front and moving rearward, the Macho Wagon gets custom bumpers with skid plates and tow hooks, a new hood with big heat extractors, an LED light bar, a roof rack, single-piece running-boards, and five-inch exhaust tips. There's one more custom piece in back. Immediately behind the C-pillar is a sport hoop, under which hides another hoop that can slide along tracks on the bed. These hoops together are called the Ramrack, and when the second hoop is moved back along the bed, it works together with the cab's roof rack to create a long utility rack. It's a thoroughly clever way of adding practicality without sacrificing appearances. We would love to see something like this reach production, since it could be very handy on quad cab pickups with short beds, allowing them to carry long objects without having to drop the tailgate to get them to fit. Because there's nothing macho about that. Related Video:

Ram boss thinks midsize truck could fit in the lineup

The execs at Ram are changing their tune about the possibility of a midsize truck in the US. Nothing is certain yet, but the chances now look a little more favorable. "I think there's opportunity there in the US if you look at what's happened in the mid-size segment here – significant growth last year," Jeep and Ram boss Mike Manley told the Detroit News. "I think that space is big enough, certainly, to have two offerings there." The other product that Manley alludes to is the forthcoming Jeep Wrangler-based pickup that's due in 2017. However, there might not be much customer overlap between the Jeep and those looking for a more traditional Ram-branded model. Manley admitted the most likely candidate for a midsize Ram would be for the company to use an existing Fiat platform, according to the News. One possibility could be rebranding the Fiat Toro pickup, but it's rather small at 20-inches shorter than a Chevrolet Colorado. This greater openness to a midsize Ram is a complete change from the company's position in the past, though. Last spring, the brand's CEO for North America said he couldn't find a strategy to make the model work. FCA boss Sergio Marchionne made the same point in 2014, when he admitted the company showed a Ram 1000 at design clinics, but the response was "lukewarm." Over the past couple years, the midsize truck market has a renaissance of fresh products. The Chevy Colorado and GMC Canyon are successes both critically and commercially. The latest Tacoma is on sale, and the new Honda Ridgeline is imminent. We know Nissan has a Frontier successor under development, and there are always rumors of Ford reviving the Ranger in the US. With so much development in the segment, it's easy to see why Ram would want to be at the party. Related Video: