Fiat Chrysler Ending US Production But There Are Two Brand Exceptions

Aug. 02, 2016 7:00 AM ET by Jay Traugott / 37 Comments

Gas guzzlers rule (and make nice profits).

Earlier this year Fiat Chrysler Automobiles (FCA) announced that there will be no replacements for both the Dodge Dart and Chrysler 200. Neither sedan is selling as well as hoped, but there are two bright spots in the FCA family: Jeep and Ram. Hooray for cheap gas! USA Today is reporting that FCA will no longer be building cars in the US by early next year. Instead, the automaker will focus its US plants entirely on Ram and Jeep models. As for the rest of FCA's US model lineup, those cars will be built in Mexico, Canada, or other countries.

FCA CEO Sergio Marchionne stated in a press conference that "By the time we finish with this (the reorganizing), hopefully, all of our production assets in the United States – if you exclude Canada and Mexico from the fold – all those US plants will be producing either Jeeps or Ram." Those two brands have been the driving force behind the automaker's sales gains lately, so it makes sense for them to become the primary focus. The Sterling Heights, Michigan plant that currently builds the 200 will soon undergo a $1.49 billion retool so that it can build the Ram 1500.