FCA Is Hungry For Diesels
Fiat Chrysler is hungry for more 3.0L VM Motori V6 diesel engines, but capacity constraints are limiting how many engines can be allocated for North America.
VM Motori, a subsidiary of FCA, can build about 100,000 V6 diesel engines, with about half of those destined for North America. The V6 is offered in both the Ram 1500 pickup as well as the Jeep Grand Cherokee.
But a report in Automotive News paints an interesting picture of the demand for the V6 in each vehicle. The take rate for diesel Grand Cherokees has leveled off at about 8 percent, or 15,000 units annually.
By contrast, Ram boss Reid Bigland claims that
“We got well in excess of 10,000 orders in just the first few days that we opened this thing up, and that ordering and demand has really sustained itself,”
According to Bigland, the EcoDiesel Ram 1500s spend an average of 13 days on dealer lots, versus 94 days for gasoline versions. A search of Cars.com shows just 1,839 EcoDiesel Rams, but 3,907 Grand Cherokees, suggesting that the Ram (which sells in much bigger numbers) has a much tighter supply of their oil-burners.
Even so, Manley and Bigland denied that they are horse trading over diesel allocation for their respective brands.
More by Derek Kreindler
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I don't know the range of diesel vs gasoline for this truck, but having a significantly longer range can be an important consideration for buyers who drive long distances or who like to go on camping/hunting excursions.
Comparing the VM diesel with the old GM 6.5 and Ford's Power Stroke is an apple to orange comparison. The VM is hi tech diesel not to be compared with the boat anchors from Ford and GM - the VM is in a different League ! In Europe this engine are used in the Lancia badged 300 c in the same manner as Chrysler used the MB OM 642 in the old 300 c These are great engines they are tough and durable - the VM was originally designed by VM for Cadillac !
According to hybridcars.com, which published the monthly diesel sales by model, the jeep grand cherokee sold 151 units in June, which is a 1 % take rate - not 8%! With 3900 units on cars.com, then there is a 28 month supply. I have no idea where hybrid cars gets its numbers, but who is correct - them or this article? Personally, as someone who drives a diesel (golf) I sincerely hope all diesel models are successes.
The article in which Manley stated the eight percent take rate was within the context of whether Jeep would offer a diesel for the Cherokee model. That's where he stated that the current take rate on the JGC was eight percent. He said that the rate would have to double before they would consider offering a diesel for the Cherokee. Perhaps, because of the reason @Scoutdude stated regarding ROI.