Introduction of the all-new Jeep Wrangler and Ram 1500 won’t cost any production as Fiat Chrysler Automobiles US uses plants in Michigan and Ohio to maintain capacity as the models roll out starting early next year.
FCA CEO Sergio Marchionne says while the company won’t build old and new Wranglers concurrently, he foresees production of the previous-generation light-duty Ram continuing through 2018 and possibly beyond, depending on demand for the truck.
FCA ran a similar game plan when it continued to build and sell the last-gen Dodge Caravan minivan for more than a year after the introduction of the all-new Chrysler Pacifica. Ram production will continue at the Warren, MI, truck assembly plant, overlapping with the start of production of the new Ram at the Sterling Heights, MI, plant in January.
Meanwhile, production of the all-new ’18 Wrangler launches by the end of the year at the Toledo, OH, North plant as Toledo South winds down manufacturing of the previous-gen Wrangler to allow time to retool for the all-new Jeep Wrangler-based pickup.
Toledo North’s 300,000-unit capacity is expected to meet global demand, but production capacity could be added at Toledo South to increase that total to 400,000 if demand necessitates.
In addition to launching the Wrangler and Ram 1500, the refreshed ’18 Jeep Cherokee starts production at the Belvidere, IL, plant in the first quarter of next year. Marchionne says properly launching the three vehicles will be key to hitting financial targets for 2018.
“Flawless execution of that plan will pretty much guarantee we’ll deliver ’18 (results),” Marchionne says.
Also a priority is developing a practical, functional and cost-efficient autonomous-vehicle platform with joint venture partners BMW, Intel and Mobileye. The partnership’s objective is to build a common autonomous-vehicle platform that can be used by multiple automakers.
Marchionne says FCA isn’t behind competitors in autonomous-vehicle development, but rather has made careful choices to avoid wasting money.
“We’re not laggards here – we’ve just chosen our spot very carefully,” he says. “There’s no shortcut to this.”
Marchionne’s observations come during FCA’s third-quarter financial report that shows the Italian-American automaker posted a 50% leap in net profit to €910 million ($1.07 billion) in the quarter.
Despite relatively flat deliveries, the company saw financial gains in each of its global regions due to cost reductions and sales of more expensive, higher-profit models.
The automaker’s stock rose 68% during the quarter, closing at nearly $18 at the end of September.
Asked how U.S. tax policy might impact FCA, the CEO estimates President Trump’s proposed 20% corporate rate would save the automaker $1 billion in 2018.
[email protected] @bobgritzinger
About the Author
You May Also Like
