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VM to ramp up diesel supply

3K views 12 replies 11 participants last post by  robertm 
#1 ·
http://www.autonews.com/article/20140707/OEM01/307079960/chrysler-seeks-more-diesels

Automotive News reports that Chrysler has asked engine maker VM Motori to boost production of the 3.0L V6 diesel. VM supplies about half of their output or 50,000 engines to North America. The Grand Cherokee uses 15,000 or 8% of GC sales. That leaves only 35,000 for the Ram 1500. Given that Ram 1500 sales were nearly 435,000 in 2013, that means that at most 8% of Rams will get the diesel.

After 10,000 Ram 1500 diesels were sold in the first few days that orders were open, demand has continued according to Ram. The diesels sit on dealer lots for an average of 13 days before being sold compared with 94 days for all Ram 1500s. Clearly, 35,000 engines is not enough. It will take VM up to 18 months to increase production, so we can expect a tight supply until the 2016 MY.
 
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#2 ·
This is a good sign that they are truly committed to this engine and will make more aftermarket support likely.
 
#9 ·
I think when it comes to truck purchasing its a rule of thirds. 1/3 are completely brand loyal no matter what and will always buy that brand just because. 1/3 will always be shopping for the best deal. The last 1/3 is driven by innovation and whichever product they truly feel is best for them.
 
#11 ·
Be prepared to see skinny incentives on these trucks untill demaand goes down or more engines come on stream..... I read somewhere that the warren truck plant is basically at capacity right now as well, with ram sales surging they will need to look at some new capacity and soon....
 
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