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FCA goes all-in on Jeep and Ram brands on cheap gas bet
Wed, Jan 27 2016It'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 best cars we drove this year
Tue, Dec 30 2014Six hundred and fifty. That's roughly how many cars pass through the hands of Autoblog editors every year, from the vehicles we test here at home, to the cars we drive on new product launches, testing roundups, long-term cars, and so on. Of course, our individual numbers vary due to several reasons, but at the end of the day, our team's repertoire of automotive experience is indeed vast. But let's be honest, some cars certainly stand out more than others. So as the year's about to turn, and as we're readying brand-new daily cat calendars for our cubicles, our editors are all taking time to reflect on the machinery that made this year so special, with one simple, open-ended question as the guide – a question that we're asked quite frequently, from friends, family, colleagues, and more. "What's the best car you drove this year?" Lamborghini Huracan When I review the list of everything I drove in 2014, picking an absolute favorite becomes almost impossible. I mean, how does one delineate between the joy offered by cars as different as the Alfa Romeo 4C, Volkswagen Golf R, Mercedes-AMG GT S and even the humble-yet-wonderful Chevy Colorado? Okay fine, I'll just pick the Lamborghini. I drove the Lamborghini Huracan LP 610-4 on a racetrack, in the mountains, and along southern coast of Spain. It felt like the king of the car jungle in all of those places, sucking the eyeballs of observers nearly out of their heads as it drove by, and almost melting my brain with its cocktail of speed and grip and intense communication. It feels a little easy to say that the one new supercar I drove this year was also my favorite, but the fact is that the Huracan is one of the finest cars I've driven during my career, let alone 2014. Judge me if you must. – Seyth Miersma Senior Editor Rolls-Royce Wraith There are a couple of ways to look at the question, "What's the best car you drove this year?" In terms of what was so good I'd go out and buy one tomorrow, that'd be my all-time sweetheart, the Volkswagen GTI. Or if I'm just talking about sheer cool-factor, maybe something like the Galpin GTR1, BMW i8, or Mercedes-Benz G63 AMG. But instead, I'm going to write about the sheer opulence of being the best of the best. The hand-crafted, holier-than-thou, shut-your-mouth-when-I'm-talking-to-you supremacy. I'm picking the Rolls-Royce Wraith. I drove the Wraith for a week in April, and was really, really impressed. This car does everything, perfectly.
Stellantis ready to kill brands and fix U.S. problems, CEO Tavares says
Thu, Jul 25 2024Â MILAN — Stellantis is taking steps to fix weak margins and high inventory at its U.S. operations and will not hesitate to axe underperforming brands in its sprawling portfolio, its chief executive Carlos Tavares said on Thursday. The warning for lossmaking brands is a turnaround for Tavares, who has maintained since Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France's PSA that all of its 14 brands including Maserati, Fiat, Peugeot and Jeep have a future. "If they don't make money, we'll shut them down," Carlos Tavares told reporters after the world's No. 4 automaker delivered worse-than-expected first-half results, sending its shares down as much as 10%. "We cannot afford to have brands that do not make money." The automaker now also considers China's Leapmotor as its 15th brand, after it agreed to a broad cooperation with the group. Stellantis does not release figures for individual brands, except for Maserati which reported an 82 million euro adjusted operating loss in the first half. Some analysts say Maserati could possibly be a target for a sale by Stellantis, while other brands such as Lancia or DS might be at risk of being scrapped given their marginal contribution to the group's overall sales. Stellantis' Milan-listed shares were down as much as 12.5% on Thursday, hitting their lowest since August 2023. That brings the loss for the year so far to 22%, making them the worst performer among the major European automakers. Few automotive brands have been killed off since General Motors ditched the unprofitable Saturn and Pontiac during a U.S. government-led bankruptcy in the global financial crisis in 2008. Tavares is under pressure to revive flagging margins and sales and cut inventory in the United States as Stellantis bets on the launch of 20 new models this year which it hopes will boost profitability. Recent poor results from global carmakers have heightened worries about a weakening outlook for sales across major markets such as the U.S., whilst they also juggle an expensive transition to electric vehicles and growing competition from cheaper Chinese rivals. Japan's Nissan Motor saw first-quarter profit almost completely wiped out on Thursday and slashed its annual outlook, as deep discounting in the United States shredded its margins. Tavares said he would be working through the summer with his U.S. team on how to improve performance and cut inventory.