Fiat Chrysler set to end production of their cars at their United States plant, but with intentions to focus on truck production.
So far in 2016 FCA has been reporting increased sales mostly in their truck, SUV and even their fleet vehicle segments, and much less growth with their car segments. There are number of factors that could explain that, and one being the reduced fuel prices, and improved fuel economy of many trucks and SUVs in their lineup.
This trend towards trucks and SUVs is pretty consistent across the entire industry, and reports are showing that most major automakers are experiencing far greater growth with those two segments, and even more so with their fleet lineup. The fleet lineup for Fiat Chrysler can be seen at Beck Chrysler of Florida, where they work with local business owners to help fill their needs for fleet vehicles.
Just recently Fiat Chrysler announced they will be end the production of their “slow-selling” Chrysler 200, a sedan they had hoped would bring back more interest in their sedan segment, a very similar issue they faced with the Dodge Dart as well a few years back.
When people read about this news they instantly fear that they will be taking away jobs form hard working Americans, but in fact they plan to invest nearly $1.5 billion to convert that assembly plant into an assembly plant that will be used to produce their RAM truck models for the future, then it will be retooled to help in the production of the renewed Jeep Wagoneer and Grand Wagoneer.
This investment is an obvious call to action by the automaker and great sign they are recognizing the demand of their market, that being trucks and SUVs. This may change in years to come, but right now, there is no reason for them to continue production of vehicles that are wasting material, and bringing poor profit margins.