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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.

Jeep Wrangler to remain in Toledo, get a pickup version

Production of the Jeep Wrangler is staying in Toledo, OH, and it might be getting a pickup in the near future, according to Automotive News. Meanwhile, Cherokee production is leaving Ohio. The announcement was reportedly made to plant management earlier today. "We found a solution that accommodates a variety of other interests to us because of the way in which we can move some product around," CEO Sergio Marchionne said to Automotive News. A Jeep spokesman declined to comment to Autoblog. Right now the official details about FCA's production plans are still hazy. However, an official announcement is expected when the automaker has a deal with the UAW, which could be by Sept. 14. According to insiders speaking to AN, the Wrangler pickup would join the lineup in 2017 or 2018. While losing the Cherokee doesn't help the Toledo factory, the new pickup should take up some of the slack. It also keeps Wrangler production going in Ohio until the next-generation model launches in 2018. The Cherokee is expected to move to the Sterling Heights Assembly plant in Michigan or Belvidere Assembly in Illinois because they build vehicles on the same platform, AN reports. The future of Wrangler production has been a hot topic at the Toledo plant for the entire year. There was initial speculation that model might leave the factory if it moved to an aluminum body. However, the latest reports offered some hope of the Jeep remaining there. Last week, Autoblog's sources at FCA also said that the Wrangler pickup was coming but couldn't confirm a timeframe. Related Video:

Jeep planning on a Grand Wagoneer Hellcat?

Twitter guy and Finder of Things Hidden Bozi Tatarevic scored another gem: an internal ZF document referencing a Jeep Grand Wagoneer Trackhawk. Dating from at least early 2017, the German auto supplier paperwork pairs what would be a 6.2-liter V8-powered three-row Jeep with ZF's 8HP95X transmission. The Jeep Grand Cherokee Trackhawk uses the 8HP95 gearbox, a version of the 8HP90 transmission used in the Dodge Charger and Challenger Hellcats, but built for all-wheel-drive applications and with a choice of gear ratio sets. This doesn't mean we'll ever see a Grand Wagoneer Trackhawk, but it looks like Jeep's been thinking about it. Not only that, but the brand was thinking about it with the just-launched-for-2019 Hellcat engine. The ZF document lists 729 PS for the engine in the Jeep, or a hair shy of 718 horsepower — just one off the figure for the 2019 Charger and Challenger Hellcats. The listed production dates mean ZF planned for a build run of April 2017 to May 2017. The document also mentions the Rolls-Royce Cullinan with two sets of build dates: from January 2016 to February 2016, and from December 2017 to January 2018. That sounds like a run of prototypes, which could be how the Grand Cherokee Trackhawk got included in the paperwork. The document didn't reference any other Wagoneer versions. A Hellcat-powered Grand Wagoneer would make sense. The new luxo-Jeep will be built on a modified Ram platform at the Warren Truck Assembly Plant, and we know Ram's working on a Hellcat-bound Ram 1500 TRX. And the now-iconic engine in an SUV that hopes to become a new icon would be a treat for dealers who wonder if the Grand Wagoneer will arrive too late to succeed. Again, this doesn't mean we'll see anything of the kind. Chrysler also evaluated a 300 Hellcat, but nothing's come of it. And with the standard Wagoneer still several years away — the renovations at the Warren plant aren't due for completion until 2020 — any hi-po version could wait another year after launch, were such a thing to happen. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.