At the moment Jeep is on a roll as with the cost of gas being low people have been choosing to go for the likes of the Jeep Wrangler, Renegade and the Cherokee, despite the fact that the brand isn’t known for good reliability.
The FCA has been pleased by the sales growth that is continuing over the recent years and $1.05 billion has now been marked so that they can expand the production capacity over at the Toledo plant where the Jeep Wrangler is made. This of course means that they have to move the Jeep Cherokee to Illinois.
It would mean that the Jeep Wrangler would have a capacity of around 350,000 vehicles, without the workers doing overtime and this is going to be a huge boost to the 240,000 vehicles per year that they are producing right now, which was shared with the Jeep Cherokee.
However many people think that the move of the FCA has been a very risky one as they are gambling on the fact of gas prices remaining cheap by the end of the decade.
Of course you could say that as they are using aluminum for the next version of the Jeep Wrangler and they have the diesel engine along with the new turbocharged four cylinder, this could help the fuel economy. However it’s not really going to sway people into thinking that the vehicle doesn’t guzzle the gas.
So the FCA has taken a huge leap of faith with production of the Jeep Wrangler, but it isn’t any worse than the plans in place for the next generation of the Ram 1500. They are moving away from the body on frame and this is costing them $1.48 billion to retool the plant in Michigan.