FCA to Increase Truck Production, Delay Plans for Alfa Romeo

Fiat Chrysler Automobiles NV’s updated five-year plan through 2018 calls for more SUVs, crossover vehicles and pickup trucks—including new hybrid and all-electric variants—to reflect what the company views as continued low fuel prices and “permanent” shifts in consumer demand toward such vehicles.

Under the plan, FCA will realign installed capacity—without adding any new plants—to produce more Dodge pickups and Jeep crossover/SUVs by the end of 2017. Previous reports have said this will be accomplished by moving nearly all North American car production to Mexico so U.S. output can focus on trucks.

Noting that global Jeep sales have rocketed 266% from 2009 to 2015, FCA is upping its 2018 production plans for the brand from 1.9 million units to 2 million. The revised total includes regional production of 1.1 million vehicles in North America, 500,000 in Asia and 200,000 each in Europe and Latin America.

The new truck offensive will include diesel and hybrid versions of the Jeep Wrangler sometime after the next-generation model is launched in 2017. FCA also plans to offer mild-hybrid versions of the Wrangler and a new Ram pickup truck. Other steps to help meet more stringent fuel economy and emission regulations include unspecified “advanced powertrains” and increased use of lightweight materials, electric steering, active aerodynamic systems and advanced electronic technologies.

On the car side, FCA says it is looking for additional partners to help it maintain a presence in North America’s compact and midsize sedan segments. The carmaker teamed up with Mazda on the new Fiat 124 Spider. Without such partnerships, CEO Sergio Marchionne says, the compact Dodge Dart and midsize Chrysler 200 likely will “run their course.”

FCA says it remains committed to relaunching Alfa Romeo, eventually. But the company is delaying a full product rollout to mid-2020 from the original target of eight models by 2018, due to uncertainties in China and the need to develop a global distribution network. Alfa’s revised plan will focus on Europe and North America, starting with the upcoming Giulia midsize sedan and a new midsize SUV due by late 2017.