CNBC's take on Mike Manley

redriderbob

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I hate CNBC... but the most important part of that article is this...

Fiat Chrysler made most of its cuts around the time it filed for bankruptcy protection in 2010, “when we were in a mode of survival,” Manley said. In sharp contrast, FCA is now adding jobs and will be opening at least one new plant, which reportedly centers around what could be a $1 billion renovation of a currently closed engine plant in the Detroit suburb of Warren, Michigan. It would be used to produce two new models for the rapidly growing Jeep brand, including a three-row model that brings back the old Jeep Wagoneer nameplate.

“I’m going to be making an announcement on that probably in the next two weeks of exactly where those vehicles are going to go, and the levels of investment and the jobs that we will generate. But they will require capacity. We can’t produce them in the volumes that we expect in the capacity that we’ve got,” Manley said.
 
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redriderbob

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Warren Truck will produce four vehicles ultimately...

- Jeep Grand Wagoneer (long-wheelbase SUV due in 2021 sometime.)
- Jeep Wagoneer (short-wheelbase SUV due in 2021 sometime.)
- Dodge Durango (next generation Durango will be body-on-frame and has been pushed back to 2022).
- Ram Heavy Duty pickup production (2022 model year will be moved from Mexico to US).

Hopefully that is what he announces according to my sources.
 
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Bili

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Warren Truck will produce four vehicles ultimately...

- Jeep Grand Wagoneer (long-wheelbase SUV due in 2021 sometime.)
- Jeep Wagoneer (short-wheelbase SUV due in 2021 sometime.)
- Dodge Durango (next generation Durango will be body-on-frame and has been pushed back to 2022).
- Ram Heavy Duty pickup production (2022 model year will be moved from Mexico to US).

Hopefully that is what he announces according to my sources.
JNAP and surrounding area?
 

mopar22

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Warren Truck will produce four vehicles ultimately...

- Jeep Grand Wagoneer (long-wheelbase SUV due in 2021 sometime.)
- Jeep Wagoneer (short-wheelbase SUV due in 2021 sometime.)
- Dodge Durango (next generation Durango will be body-on-frame and has been pushed back to 2022).
- Ram Heavy Duty pickup production (2022 model year will be moved from Mexico to US).

Hopefully that is what he announces according to my sources.
What will they be doing with their mexico plant or will they still be doing hd?
 

Blown7

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I hate CNBC... but the most important part of that article is this...

Fiat Chrysler made most of its cuts around the time it filed for bankruptcy protection in 2010, “when we were in a mode of survival,” Manley said. In sharp contrast, FCA is now adding jobs and will be opening at least one new plant, which reportedly centers around what could be a $1 billion renovation of a currently closed engine plant in the Detroit suburb of Warren, Michigan. It would be used to produce two new models for the rapidly growing Jeep brand, including a three-row model that brings back the old Jeep Wagoneer nameplate.

“I’m going to be making an announcement on that probably in the next two weeks of exactly where those vehicles are going to go, and the levels of investment and the jobs that we will generate. But they will require capacity. We can’t produce them in the volumes that we expect in the capacity that we’ve got,” Manley said.
I really loved that part.. in 2010 FCA looked like losers but now look like heros. I'm glad FCA could keep going and I've done my part in the last three years purchasing two high end Jeeps and a lowly 200C AWD that I think is a great car.
 

Rustydodge

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Question concerning ram truck capacity....how does Ram expect to hold #2 spot if they go back to only 2 truck plants? Does SHAP have the capacity to produce 400k ram 1500s and Warren 300k Ram HD alongside 3 new body of frame SUVs?

I must admit i know nothing about the size or capacity of either of those plants, but that is a LOT of product out of only 2 locations. I don't see how Ram trucks expect to be #2 if they dont have 3 truck plants, unless they are expecting the truck market to flatten out while they continue taking share, so huge volume isn't required.

I suppose time will tell
 

AlexB

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Question concerning ram truck capacity....how does Ram expect to hold #2 spot if they go back to only 2 truck plants? Does SHAP have the capacity to produce 400k ram 1500s and Warren 300k Ram HD alongside 3 new body of frame SUVs?

I must admit i know nothing about the size or capacity of either of those plants, but that is a LOT of product out of only 2 locations. I don't see how Ram trucks expect to be #2 if they dont have 3 truck plants, unless they are expecting the truck market to flatten out while they continue taking share, so huge volume isn't required.

I suppose time will tell
I belive the idea is to free up Saltillo Truck to make 1500 as well.
 

Rustydodge

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I belive the idea is to free up Saltillo Truck to make 1500 as well.
That would not make sense to me. If SHAP cant handle 1500 then Warren should continue with 1500 overflow (or at least regular cab version) while Saltillo continues building HDs. They already "delayed" HD move to Warren i could see them doing it indefinitely. Part of what they decide will tell us how many wagoneer/grand wagoneers they plan to sell.

I'm afraid if they try to pinch HD in Warren as well, then BOF Durango will be left to die in the cold....It is already getting the short end of the stick taking second fiddle to grand cherokee.
 

Freshforged

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That would not make sense to me. If SHAP cant handle 1500 then Warren should continue with 1500 overflow (or at least regular cab version) while Saltillo continues building HDs. They already "delayed" HD move to Warren i could see them doing it indefinitely. Part of what they decide will tell us how many wagoneer/grand wagoneers they plan to sell.

I'm afraid if they try to pinch HD in Warren as well, then BOF Durango will be left to die in the cold....It is already getting the short end of the stick taking second fiddle to grand cherokee.
I believe, as well as the crew in Saltillo have been doing, management sees the move to an upgraded facility as neccisary to make the next leap forward for HD production. How this effects the Durango remains to be seen, but HD production will likely remain just a fraction of the 1500‘S volume.
 

Rustydodge

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I believe, as well as the crew in Saltillo have been doing, management sees the move to an upgraded facility as neccisary to make the next leap forward for HD production. How this effects the Durango remains to be seen, but HD production will likely remain just a fraction of the 1500‘S volume.
200,000 is still a lot. But i guess if between the GW/W and durango is only 200k as well then probably no issue. HD was down for 2018 who knows what jump we'll see in 2019.

Ram p/u 2017 vs 2018 (+7%)
500,723 vs 536,980

Ram 1500 2017 vs 2018 (+15%)
328,074 vs 377,286

Ram HD 2017 vs 2018 (-10%)
177,649 vs 159,694
 
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redriderbob

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Question concerning ram truck capacity....how does Ram expect to hold #2 spot if they go back to only 2 truck plants? Does SHAP have the capacity to produce 400k ram 1500s and Warren 300k Ram HD alongside 3 new body of frame SUVs?

I must admit i know nothing about the size or capacity of either of those plants, but that is a LOT of product out of only 2 locations. I don't see how Ram trucks expect to be #2 if they dont have 3 truck plants, unless they are expecting the truck market to flatten out while they continue taking share, so huge volume isn't required.

I suppose time will tell
Warren Truck could produce around 575k (after 2014) trucks a year. In 2014, FCA listened to employees opinions at Warren and it allowed them to build an additional 100 vehicles a day or 28,585 more trucks a year to keep up with demand. Remember, before the bankruptcy Rams 1500 were also built at St. Louis North. Saltillo then took over regular cab Ram 1500 production, including the Ram 1500s outside of US and Canada.

The reason the new Ram 1500 was built as SHAP was space. The 2015 Chrysler 200 although it sat on the same grounds as former 200 and Avenger it was built in a completely new section of the building. The other half sat empty. After FCA decided to drop the car, they decided to alter the plant to make the Ram 1500 and open it up to make a 5 million square foot assembly plant without a stamping plant (Sterling Stamping is located a mile down the road). Compared to the 3.31 million square foot Warren Truck plant (which also shares stampings from Sterling Stamping).

Warren Truck is also the most outdated plant in the FCA portfolio. SHAP is the most modern using completely new technology and is capable of building well over 700,000 trucks (if needed).

Not much at Warren has changed since this video was made (in looks of the plant)...


here is another video...


Jared put together some video of the SHAP we got from one of the 5thGenRams forum members who works there when the truck first launched last year...


When Warren Truck gets its $1.1 billion update it will look very much like the setup at SHAP to build the four vehicles I listed above.
 

AlexB

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Thank you @redriderbob for the detail. Sounds like capacity is not a concern at all.
Actually when the new target is F-Series in volume its a "Good" concern, the Metric Truck that's important to International (especially Brazil) base on Manley's comments is on the back burner.

It got me think maybe the Promaster and smaller Trucks to Toluca given FCA will be lunching local Italian production of an updated Compass.
 

Freshforged

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Actually when the new target is F-Series in volume its a "Good" concern, the Metric Truck that's important to International (especially Brazil) base on Manley's comments is on the back burner.

It got me think maybe the Promaster and smaller Trucks to Toluca given FCA will be lunching local Italian production of an updated Compass.
Would LOVE TO SEE Promaster production moved to Mexico so that we could have greater controls of production/quality/costs. We would also no longer have to worry about the chicken-tax.
 

Rustydodge

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Can't say that surprising me. If they are still selling...keep building them.

Will they have a DS line and a new wagoneer/GW line? Or a DS line and a new HD line?
 

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