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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.

FCA recalls 570,000 SUVs from Jeep and Dodge over fire woes

Fiat Chrysler US has issued two recalls covering a total of about 570,000 Jeep and Dodge models. The first concerns vanity mirror wiring in the Jeep Grand Cherokee from the 2011 and 2012 model years, and in Dodge Durango units built before September 12, 2012. The automaker recalled almost 900,000 units last year to repair the issue, then faced more issues this year when the fires continued in repaired vehicles. This new recall seeks to resolve the issue, FCA saying that the post-recall fires happened in a tiny percentage of vehicles equipped with a specific wiring package. This recall is for 352,831 total units in the US, another 26,478 in Canada, 13,037 in Mexico, and 84,330 internationally. No injuries or deaths have been reported. FCA says it will inform customers as to when they can schedule a service visit to remedy the issue. The second recall takes aim at 60,107 examples of the Jeep Compass and Patriot from the 2015 model year in the US, plus 5,755 in Canada, 3,351 in Mexico, and 23,995 in other markets. Those models could suffer from an out-of-position clamp on the power steering fluid line. The error could allow fluid to leak, increasing the risk of a fire if the fluid ends up on a hot surface. In the case of a complete loss of fluid, drivers will need to use a lot more effort to steer. The automaker reports no injuries or accidents, and will advise customers when to head to the dealer for service. Related Video: Jeep Grand Cherokee and Dodge DurangoStatement: Vanity-Mirror WiringDecember 24, 2015 , Auburn Hills, Mich. - FCA US LLC is recalling an estimated 352,831 SUVs in the U.S. to help ensure vanity-mirror wiring may be serviced more consistently.Overheating conditions were reported among a small percentage of vehicles (<0.02%) serviced in connection with a related recall, conducted previously.** An FCA US LLC investigation discovered the service procedure, if not followed precisely, may leave vehicles susceptible to a short-circuit, creating a potential fire hazard.The Company is unaware of any related injuries or accidents. Post-service overheating conditions were observed only in vehicles equipped with a certain wiring package. These vehicles were produced before Sept. 2, 2012.Affected are model-year 2011-2012 Jeep Grand Cherokee and Dodge Durango SUVs produced before Sept. 2, 2012. Wiring in the headliners of these vehicles will be secured with a new adhesive.

Autoblog Podcast #394

Episode #394 of the Autoblog Podcast is here, and this week, Dan Roth, Steven Ewing, and Michael Harley talk about the possibility of a supercharged Dodge Viper, the Chevrolet Silverado Rally Edition, the newly released supercharger kit for the Honda CR-Z, and rumblings of an Alfa Romeo 6C. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #394: The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics: Supercharged Viper Chevrolet Silverado Rally Edition Honda CR-Z Supercharged Alfa Romeo 6C In The Autoblog Garage: 2014 Ford Fiesta SE 2015 Cadillac Escalade 2015 Toyota Tundra TRD Pro 2015 Audi A8 L TDI Hosts: Dan Roth, Steven Ewing, Michael Harley Runtime: 01:32:30 Rundown: Intro and Garage - 00:00 Supercharged Viper - 44:25 Chevrolet Silverado Rally Edition - 55:19 Supercharged Honda CR-Z - 01:00:52 Alfa Romeo 6C - 01:07:29 Q&A - 01:13:41 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes