Fiat Chrysler to focus on hybrids, not full EVs

Cleveland, Ohio – While Ford and General Motors are jumping firmly into electric vehicles (EVs) in their 2020-to-2024 spending plans, Fiat Chrysler Automobiles (FCA) is focusing more attention on hybrids.

United Auto Workers (UAW) local leaders for FCA plants approved a tentative new contract with the automaker last week, and workers are voting on approval this week. Now that leaders have approved the deal, UAW officials publicly shared details of the $9 billion FCA is committing to U.S. production, a figure that could add 7,900 jobs to its plants.

Product commitments include:

• Belvidere Assembly Plant (Illinois)

  $55 million investment; current Jeep Cherokee will continue

• Detroit 2 Assembly Plant

  $1.5 billion investment; new 3-row Jeep SUV in 2020; next generation Grand Cherokee, including plug-in hybrid electric (PHEV) in 2021; potential workforce increase: 3,850

• Jefferson Assembly Plant (Detroit, Michigan)

  $3 billion investment; current Dodge Durango will continue; introduction of hybrid Durango in 2020; current Grand Cherokee build out to 2021; next generation Grand Cherokee, including PHEV in 2021; potential workforce increase: 1,100

• Toledo (Ohio) North Assembly Plant

  $160 million investment; current Jeep Wrangler will continue; introduction of Wrangler PHEV in 2020; potential workforce increase: 100 related to PHEV build

• Toledo South Assembly Plant

  $120 million investment; current Jeep Gladiator pickup will continue

• Sterling Heights (Michigan) Assembly Plant

  $210 million investment; current Ram 1500 pickup will continue; Ram TRX offroad truck launch in 2020; potential workforce increase: 200 related to TRX

• Warren (Michigan) Truck Assembly Plant

  $2.8 billion investment; current Ram 1500 will continue; new Jeep Wagoneer/Grand Wagoneer, including PHEV in 2021; potential workforce increase of 1,500

FCA’s Toledo Machining Plant would also win work for the Jeep’s PHEV modules, and the company is committing to spend more on electrification projects in its design studios and engineering centers.

However, while FCA’s overall plant investments are in line with Ford’s and GM’s, the commitment to electrification is much lower.

GM’s UAW contract called for $3 billion in investments for electric trucks and vans and battery modules at its Detroit Hamtramck plant, and the company has since announced plans for a $2.3 billion joint venture in Ohio with LG Chem to produce EV batteries.

Ford’s UAW contract calls for hybrid pickups, EV modules, EV batteries, EV motor manufacturing, electric vans, and several hybrids/PHEVs.

About the author: Robert Schoenberger is the editor of Today's Motor Vehicles and a contributor to Today's Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 19 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.

rschoenberger@gie.net