FCA Is Hungry For Diesels

Derek Kreindler
by Derek Kreindler

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.

Derek Kreindler
Derek Kreindler

More by Derek Kreindler

Comments
Join the conversation
50 of 150 comments
  • Thelaine Thelaine on Jul 07, 2014

    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.

    • Lou_BC Lou_BC on Jul 09, 2014

      @thelaine - I'd love a small diesel for those reasons and also combined with the fact that if one travels remote areas of the country there is always heavy machinery out their which runs on diesel. The biggest problem for me is the fact that the Ram Ecodiesl in a crew cab at best has 1,233 lb cargo. You add any extras and that eats into cargo capacity. A diesel HD is complete overkill for me. The 2015 Power Wagon has been emasculated in the name of a better ride. It has around 1,500 lb cargo which is down over 300 lb from its predecessor. Ram has gone to clearly delineated cargo capacities. It hasn't hurt sales but for someone like myself who actually looks at cargo capacity as an important need, it rules out the Ecodiesel and pretty much any 1/2 ton crewcab from Ram.

  • SweDane SweDane on Jul 07, 2014

    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 !

    • See 18 previous
    • Scoutdude Scoutdude on Jul 09, 2014

      @Scoutdude Yes a T444E is the same long block as the PS 7.3 and they T444 is the same as the 7.3 though in the Internationals you had some choice of HP ratings. Yes the PS 7.3/T444E was discontinued when the PS 6.0/VT365 was introduced.

  • Mulled whine Mulled whine on Jul 08, 2014

    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.

    • See 21 previous
    • Scoutdude Scoutdude on Jul 09, 2014

      @Dartman what are you calling BS on you agree that the ratio can be manipulated with in a certain range and the exact ratio you end up depends on what you start with and how much you are willing to spend to manipulate the ratio. Yes the raw gas that leaves the refinery is a commodity and the stuff that comes out of a brand X pump may have came from Brand Y refinery. The individual specific additive package that is or isn't added before it heads to the station is what brands it. If you've got a sign that says Chevron out front and the required Techron advertising you are required to purchase fuel from the Chevron distributor that services your area. Now if you are Safeway, Costco or Joe's gas and grub you are free to purchase your fuel from anyone that will sell it to you. However pricing is based on volume and most stations will still buy most if not all of their fuel from a single distributor/brand for that reason. Way back in the day when I was in college I worked at a gas station. The owner was the distributor for Mobil in the area and had over a dozen stations. Most did carry the Mobil brand but he also had Arco and Texaco branded stations. I worked at one that carried the Star and I usually worked Sun nights so I received the weekly shipment which came in a Texaco branded truck. However he owned his own trucks and would haul his own Arco fuel for his Arco branded stations and Mobil to his and other Mobil branded stations.

  • Bobman Bobman on Jul 08, 2014

    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.

    • See 3 previous
    • RobertRyan RobertRyan on Jul 09, 2014

      @Lou_BC, Current Wrangler can be had with the earlier 2.8 engine in Australia . Still preferable to the 3.6 engine

Next