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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 recalling 400k Jeep Wranglers, 40k Fiat 500s

The Basics: Fiat Chrysler Automobiles has issued two recall. The first is for 392,464 Jeep Wranglers in the US from the 2007-2010 model years for the steering wheel airbags. The second covers 39,217 examples of the naturally aspirated 2012-2016 Fiat 500 in connection with the clutch release mechanism. The Problem: In the Wranglers' steering wheel, excessive accumulation of dust and dirt from open-air driving off-road could compromise the clockspring in the steering-wheel assembly and prevent the airbag from deploying in the event of a crash. In the case of the Fiats, the clutch travel in a small percentage of vehicles equipped with manual transmissions "may exceed design parameters" and eventually damage components. Injuries/Deaths: No injuries or accidents been reported to result from either issue. The fix: Dealers will install new back covers and column shrouds in the Jeeps and upgrade the clutch release systems in the 500s. If you own one: Expect to hear from the manufacturer to arrange service. In the case of the Fiat recall particularly, FCA "urges customers to heed the instructions on their recall notices." Related Video: Statement: Clockspring May 18, 2016 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 392,464 older-model SUVs in the U.S. to replace their clockspring assemblies and related components. Located in a vehicle's steering wheel, a clockspring forms part of the circuit that helps control airbag function. An investigation by FCA US determined excessive exposure to dust and dirt – consistent with extensive off-road driving or driving with a vehicle's top and/or doors removed – may compromise the clockspring and eventually prevent driver-side airbag deployment in a crash. If this condition is present, the airbag warning-lamp will be illuminated. If such an event occurs, customers are advised to contact their dealers. The Company is unaware any potentially related injuries or accidents. Affected by this campaign are model-year 2007-2010 Jeep Wrangler SUVs. An additional 7,435 model-year 2011-2016 vehicles equipped with right-hand drive for special duty also are affected in the U.S. Vehicles affected outside the U.S. comprise an estimated 35,412 in Canada; 8,529 in Mexico and 62,580 outside the NAFTA region. Customers will be advised when they may schedule service, which includes installation of a new steering-wheel back cover and a steering-column shroud.

Fiat gets into the classics game with 'Reloaded by Creators' program

Classic vehicles help modern buyers make new connections to a carmaker's modern offerings. That's why in little more than a month we've seen Jaguar announce a continuation run of the D-Type, Porsche get a show at the Petersen Museum in Los Angeles, Land Rover plan to restore a Series I, and Jay Leno celebrate the 1942 Dodge Carryall. Fiat Chrysler already has a heritage division, but the vintage department takes a new step into its history with the "Reloaded by Creators" service. Said to be inspired by retail programs at museums, Reloaded by Creators will see FCA Heritage source and buy noteworthy classics from the Abarth, Alfa Romeo, Fiat, and Lancia brands, restore them to original spec, then sell them to collectors. When Roberto Giolito, head of FCA Heritage, broke the news at Retromobile in Paris, he also revealed the first five offerings: three "ultimate classics" in the Alfa Spider IV serie (1991), Lancia Fulvia Coupe Montecarlo (1973), Spidereuropa Pininfarina (1981), and two custom cars in the Alfa Romeo SZ (1989) and Lancia Appia Coupe (1959). The ultimate classics represent the last of their kind to be built, not necessarily according to model year, but with respect to design and engineering - no major model changes followed. The Lancia Fulvia Coupe ceased production in 1976; the limited edition 1973 Montecarlo model celebrated the car's victory in the 1972 Montecarlo Rally and still wears the original license plates. The 1981 Spidereuropa Pininfarina comes from the beginning of the end of production; after building the Fiat 124 Sport Spider for US-only sale from 1975 to 1983, Pininfarina resumed manufacture in Europe in 1982 and bestowed the new name. The Alfa Spider went out of production in 1993, the 1991 Series IV example for sale here has been in FCA's collection since it was built, used for technical testing. As for the custom cars, Lancia built a variant of its third-generation Appia as a coachbuilt chassis. Pininfarina bodied the 1959 model for sale here, and Fiat showed it first in Paris. Fiat used the funky, Zagato-designed, thermoplastic-composite-bodied, 1989 Alfa Romeo SZ for testing at the carmaker's Balocco circuit. Only around 1,000 SZ models emerged from the factory during a two-year production run. Each vehicle will come with a certificate of authenticity and be guaranteed by FCA, plus be featured on the FCA Heritage site.