FCA confirms its plan relating to its vehicle production in the USA
- The FCA group recently communicated on its plan to produce vehicles in the US. This plan is based on the product plans announced in 2014, 2015 and 2016, as well as on the US vehicle production strategy, presented in July 2016.
- In 2014 and 2015, FCA announced in its product plan the release of the new Jeep Wagoneer / Grand Wagoneer and Wrangler Pick-Up vehicles. At the end of 2016, FCA announced that production of the Dodge Dart and Chrysler 200 sedans had been stopped. Detailed analyzes of these various announcements are available on the Inovev platform.
- In July 2016, FCA had communicated its strategy of vehicle production in the US. The strategy is to produce only SUVs and Pick-ups on American soil.
- The latest communication from FCA clarified the production plan in the USA, which includes:
• the next generation of the Dodge Ram Pick-Up 1500 (transferred from Mexico to the US);
• three new Jeep vehicles: the Wagoneer, the Grand Wagoneer and a Pick-Up (likely the Wrangler).
- The Dodge Ram range is the most sold range of the FCA group, with more than 600,000 vehicles produced each year (55% in the US and 45% in Mexico).
The Dodge Ram range is composed of the Ram 1500, Ram 2500/3500, Ram Mega Cab, Ram 3500 Chassis Cab, Ram 4500/5500 and DX Chassis Cab (for the Mexican market). In 2016, 596,810 vehicles were sold in the three NAFTA countries, of which 489,418 in the USA, 89,666 in Canada and 17,726 in Mexico.
The Dodge Ram range is composed of the Ram 1500, Ram 2500/3500, Ram Mega Cab, Ram 3500 Chassis Cab, Ram 4500/5500 and DX Chassis Cab (for the Mexican market). In 2016, 596,810 vehicles were sold in the three NAFTA countries, of which 489,418 in the USA, 89,666 in Canada and 17,726 in Mexico.
- The current version of the Dodge Ram 1500 is manufactured on two sites: one in the USA (Warren) and the other one in Mexico (Saltillo). The next generation of the Dodge Ram 1500, expected to be released in 2019, will now be manufactured at the two US sites in Warren, Michigan and Sterling Heights, Michigan. The latter is currently ending the manufacture of the Chrysler 200 sedan that will not be replaced.
- As for Jeep, FCA has announced the arrival of three new models in its American plants.
The Warren (Michigan) plant will produce the Jeep Wagoneer and Grand Wagoneer SUVs, while the Toledo (Ohio) plant will produce a Jeep pickup, in addition to the current Jeep Cherokee and Wrangler.
The Warren (Michigan) plant will produce the Jeep Wagoneer and Grand Wagoneer SUVs, while the Toledo (Ohio) plant will produce a Jeep pickup, in addition to the current Jeep Cherokee and Wrangler.
- In conclusion, four FCA plants will be impacted by this plan:
• In USA
ØThe Warren plant which currently produces the Dodge Ram 1500, will produce by the side the Wagoneer and Grand Wagoneer.
With 316 000 units produced in 2016, the plant should consequently increase its production by at least 50 000 units per year in its first years.
With 316 000 units produced in 2016, the plant should consequently increase its production by at least 50 000 units per year in its first years.
ØThe Sterling Heights plant, which currently produces only the Chrysler 200 (76 000 units), will replace it with the Dodge Ram 1500 (with higher volume than the Chrysler 200). Consequently the production of the Sterling Heights plant should increase.
ØThe Toledo plant (480,000 units in 2016) which currently produces the Jeep Wrangler and Cherokee will add the Jeep pick up, what should increase the production of the plant.
• In Mexico
Øthe Saltillo plant (281,000 units in 2016), will continue to produce the Dodge Ram 2500/3500, Ram Mega Cab, Ram 3500 Chassis Cab, Ram 4500/5500 and DX Chassis Cab (for the Mexican market), but will lose the Ram 1500 which will be transferred to the Sterling Heights plan (see here above)
ØConsequently the production of the Saltillo plant should mechanically decrease, unless new models are added.
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