Things are looking great for FCA these days, especially with the superior sales of the Jeep brand making up for the poor selling Chrysler, Fiat, and Dodge. It’s clear that FCA will not be giving up on Jeep anytime soon.
Currently, the company is planning to channel an investment of $1.05 billion to revamp Jeep’s Toledo factory in Ohio for the upcoming Wrangler. The Cherokee, currently manufactured in Toledo, will be relocated to Belvidere, Illinois.
FCA’s move of putting in so much money for Jeep seems to be quite gamble as there is no guarantee that the gas prices will remain low in the future.
There will be fuel economy enhancement to the next-gen Wrangler but it will not change the fact that efficiency isn’t exactly the strongest point of 4×4 vehicles.
That may seem like a huge risk for the company but there’s something else that has cropped up. FCA had recently announced that it will be channeling $1.48 billion to refurbish the Sterling Heights Assembly factory in Michigan. This is to aid in the production of the next-gen RAM 1500 which is changing to body-on-frame build.
Similar to the Cherokee, the Chrysler 200 will be pushed to make way for the Ram 1500. However, in the Chrysler 200’s case, it will not be moving anywhere else, instead it will be terminated with the Dodge Dart in Illinois.