Thanks to the gas prices being low Jeep has been on a roll as buyers have been more inclined to go for the Jeep Cherokee, Wrangler and the Renegade. This is despite the fact that the reliability ratings of the vehicle are not so good. This has meant that the FCA is throwing all caution into the wind.
They have focused on continued growth sales over the recent years and $1.05 billion has been put to one side so that expansion can start on boosting the production capacity of the Jeep Wrangler at the Toledo plant. At the same time they are moving the production of the Cherokee away.
This means that the annual capacity of the Wrangler, which was 240,000 shared with the Cherokee, can be boosted to 350,000.
This of course may be a move that is risky as it relies on the fact that gas is going to remain cheap at the turn of the decade. Many people don’t think that this is something that will happen.
However, while this is a big leap of faith for the FCA on the Jeep Wrangler, it isn’t any less risky that what the car maker has in store for the Ram 1500. They are moving it away from the body-on-frame and are spending $1.48 billion on retooling the Sterling Heights Assembly Plant.