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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.

Fiat Chrysler expands Takata airbag recall to 3.3M vehicles

Fiat Chrysler Automobiles is expanding its recall of vehicles equipped with Takata airbags, moving beyond Florida, Hawaii, Puerto Rico and the US Virgin Islands to the greater US, as well as Mexico, Canada and beyond. The affected vehicles, some 3.3 million in total, were built between 2004 and 2007, with many models, including the Dodge Ram 1500, 2500 and 3500, Durango and the Chrysler 300, having been affected by Chrysler's previous recall. Despite the somewhat alarming nature that comes with a recall of this many vehicles, it seems that Chrysler is moving more out of an abundance of caution (and federal pressure) than anything else, saying: "Neither FCA US, nor Takata Corporation, the supplier, has identified a defect in this population of inflators. These components also are distinct from Takata inflators cited in fatalities involving other auto makers. More than 1,000 laboratory tests have been performed on these components. All deployed as intended, but FCA US continues to study the suspect inflators, which are not used in the Company's current production vehicles." Owners of affected vehicles will be notified and asked to report to dealers for a free replacement driver's side airbag. Scroll down for the official press release from FCA. Statement: Global Air-Bag Inflator Replacement December 19, 2014 , Auburn Hills, Mich. - FCA US LLC will replace driver's-side air-bag inflators in an estimated 3.3 million older-model vehicles worldwide, in an expansion of an ongoing regional field action. Neither FCA US, nor Takata Corporation, the supplier, has identified a defect in this population of inflators. These components also are distinct from Takata inflators cited in fatalities involving other auto makers. More than 1,000 laboratory tests have been performed on these components. All deployed as intended, but FCA US continues to study the suspect inflators, which are not used in the Company's current production vehicles. Outside of Florida, one of the areas covered by the original action, no FCA US vehicle has been linked to an air-bag deployment of the type that has raised public concern. Nevertheless, the Company is replacing the Takata components tied to that concern. FCA US is aware of one related injury involving one of its vehicles, an older-model sedan. It occurred in a southern Florida region marked by persistent, high, absolute humidity – a condition believed to be a contributing factor in the air-bag deployments under investigation.

Hypermiling a Ram 1500 EcoDiesel to 38.1 mpg

You never quite know what Wayne Gerdes has up his sleeve. The man who coined the term hypermiling is always looking for adventurous ways to prove that anyone – even you... yes, you – can eke out more miles per gallon just by changing the way you drive. Saying that is easy. Proving it by going on outlandish cross-country drives is hard. But for Gerdes and his team of fuel economy fiends over at CleanMPG, hard is half the fun. Our latest adventure appeared, at first glance, to be nearly impossible. Which is why we always answer the phone when Gerdes calls. He likes to take journalists along on his drives, not only to try teach us how to hypermile but also to prove that we can be taught. The first time I 'helped' him and his team was when we got over 30 miles per gallon in a 2011 Ford F-150 XLT with the EcoBoost 3.5-liter V6. The EPA rated that truck with at just 16 mpg in the city and 22 on the highway. So, we'll count that trip as a success. Next up was a cross-country drive last fall in a trio of Audi TDI vehicles to prove that you don't need to drive extra slow to beat the EPA numbers. In fact, we made it from Los Angeles to New York City in just over 46 hours, cramped but not cranky. We had once again proven that how you drive is hugely important to your fuel usage. Our latest adventure appeared, at first glance, to be nearly impossible. The EPA says that the Ram 1500 EcoDiesel we would be driving gets just 22 combined mpg (19 city and 27 highway). Gerdes' idea was to drive it as far north from Houston, TX towards Detroit, MI as we could go on one tank. The day before we left, our itinerary got an extra stop. Instead of taking one of the official Shell Eco-marathon prototype vehicles to Detroit, it was decided to bring the winning diesel-powered prototype from the just-finished event to The Henry Ford Museum, where it had been arranged the car would be displayed. The winning car was built by a small team (just four students) from Sullivan High School in Sullivan, IN, who managed to beat a number of college teams with a score of 1,899.32 mpg. That target would be a bit out of reach for the Ram, but could we get 1,000 miles from the tank? Since the truck has a 26 gallon tank (officially, anyway), that would mean the EPA says we could only go 702 miles, assuming all highway driving. Could we make up 300 miles with careful driving? That spells both challenge and fun.