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FCA and UAW deal could mean huge production shakeups

The big labor contract between Fiat Chrysler Automobiles and the United Auto Workers is likely to lead to some very serious production shakeups across the company's North American manufacturing operations. That's according to a new report from Automotive News, which details the sweeping changes at no fewer than five production facilities in Michigan, Illinois, Ohio, Mexico, and Poland. So without further ado, here's what's going where, presented in easy to digest bullet form. Ram 1500 production would move from Warren, MI to Sterling Heights, MI Warren, MI would be retooled for unibody production and would handle the Jeep Grand Wagoneer and could potentially build Grand Cherokees to ease the strain on Detroit's Jefferson North factory Chrysler 200 production would move from Sterling Heights, MI to Toluca, Mexico Dodge Dart production would move from Belvidere, IL to Toluca, Mexic Fiat 500 production, which is currently handled by Toluca, would be concentrated in Poland, where the Euro-spec Cinquecento is built Jeep Cherokee production would move from Toledo, OH to Belvidere, IL to make room for Wrangler and Wrangler Pickup production Like we said, those are some big changes. But, as FCA CEO Sergio Marchionne said in an earlier interview with Automotive News, this kind of shakeup would make a lot of sense. In that August interview the exec said that automakers moved truck production to Mexico because they were "threatened" by the UAW. "The only thing [the UAW] want is to move the truck back. Which is right. If you move the truck back here, which is [the UAW's] domain, [and move] all the cars that we get killed on somewhere else, we could actually make sense of this bloody industry and actually increase the number of people employed in this country and really share wealth because we are making money," Marchionne told AN. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA toluca warren sterling heights

Chrysler axes old V6s, goes all-Pentastar

Old technology has a way of lingering on, particularly at Chrysler headquarters in Auburn Hills. So while the Pentastar V6 has replaced the older engine architecture in just about every application, it still soldiered on in some export markets. But the introduction of a new 3.0-liter Pentastar V6, produced in Michigan and meant only for the Chinese market, has put the final nail in the old engine's coffin.
Fitted into the 2014 Jeep Grand Cherokee and Jeep Wrangler just introduced to China at the Chengdu Motor Show, the downsized six uses the same architecture as the larger 3.6-liter Pentastar V6. But because of its 2,997cc capacity, it can be exported to China without the increased duty the 3.6-liter or even 3.2-liter Pentastar engines would incur. The 3.0-liter V6 develops 230 horsepower at 6,350 rpm and 210 pound-feet at 4,400 rpm.
Admittedly, it's unlikely, but even though the engine was said to be created solely to undercut tax thresholds in China and Europe, the 3.0-liter Pentastar has recently surfaced in rumors of an application here: as the boosted heart of a potential Cherokee SRT with anywhere from 375 to 410 hp.

Chrysler reports $166M net income for Q1, down $307M vs. 2012

Preliminary first-quarter results from 2013 have been announced by Chrysler, and the company is reporting a net income of $166 million on revenue of $15.4 billion. Compared to this period last year, net income is down $307 million and revenue has dropped $1 billion.
Chrysler says that its quarter was negatively affected by the costs associated with launching its 2013 Ram Heavy Duty, 2014 Jeep Grand Cherokee and preparation for the return of the all-new 2014 Jeep Cherokee pictured above. The launches should provide a strong second half of 2013, says the automaker. "We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule," said Chrysler Group LLC Chairman and CEO Sergio Marchionne.
On a positive note, the automaker says worldwide vehicle sales are up 8 percent from one year ago, a number pushed by a 12 percent bump in U.S. retail sales. In addition, domestic market share has risen slightly, up to 11.4 percent from 11.2 percent last year. Read more in the official statement below.