Auto Makers: US Stelantis (Part 4C) 2nd half

The best way to tackle Car Manufacturers in the US is to break them up by category. We started with Ford and GM earlier this month. Now it’s time for the “parent company” car maker you’ve probably never heard of even though they are currently responsible for many long standing and household recognized brands.

Later in this series we’ll get to some of the the start ups and those that have been phased out or gone out of business.

StelantisRecap from 1st Half

Vital Stats: 2021-Present, Headquartered in Amsterdam.

Ever heard of Stellantis? You’ve probably heard of Chrysler and assumed that was the third spoke in the US automotive “Big Three.” Stellantis formed in 2021 as a multinational automotive manufacturing corporation. In order to understand this merger you must first know what happened to Chrysler, detailed below, but in short it became the Italian-American conglomerate Fiat Chrysler Automobiles (FCA).

FCA joined in a 50-50 cross-border merger with the French PSA Group. Upon forming Stellantis became the fifth largest automaker in the world, behind ToyotaVolkswagenHyundai, and General Motors. At the time of the merger, Stellantis had approximately 300,000 employees, and manufactured in 30 countries. Sales are worldwide in 130 countries.

Major brands include  AbarthAlfa RomeoChryslerCitroënDodgeDSFiatFiat ProfessionalJeepLanciaMaseratiMoparOpelPeugeotRam and Vauxhall. This article will focus on the US concerns since this is a US Automaker post. Other car makers will be covered with the respective countries where the brand is most commonly associated. For example, while Vauxhall has long been thought of as Chrysler of the UK most Americans are unfamiliar and unaware the brand even exists.

The deal is estimated to save the companies $4.22 billion. While the merger is thought of as 50-50 PSA got six out of the 11 board members and retained their CEO at the helm of the newly formed company. PSA shareholders paid a fee to acquire their shares in the new company which went to FTA shareholders to compensate them for differences in valuations. It looks to us like a David ate Goliath situation purely for the glory of becoming the #4 car maker in the world.

Jeep

Vital Stats: 1941-Present, Headquartered in Toledo, OH.
Formed by Willys-Overland in 1941.
Merged with Kaiser Motors in 1953.
Acquired by AMC in 1970.
Acquired by Chrysler in 1987.

This history of jeep is fascinating. The jeep is just different from the ground up from most other passenger vehicles. Unusual for a US maker–it’s headquartered outside Michigan. It’s an iconic shape that many automobile manufacturers around the globe feel free to replicate in some fashion. There is also military use which has come back in a manor of speaking.

During the 80 years since the first jeep was built their have been luxury versions, vans and even a truck. With roughly 2400 dealerships holding franchise rights to sell Jeep-branded vehicles if Jeep were spun off into a separate company, it would be a skosh bigger than Chrysler is without it (estimated value $22 to $33 billion). Let’s clear this up some.

The origin of the name is very fitting. You may be familiar with US military terms like FUBAR and SNAFU which go all the way back to WWI. Jeep was, prior to US entering WWII a slang term referencing something General Issue like soldiers and rifles. The term General Purpose got shortened to GP to Jee-P. The vehicle itself was a work horse and quickly became associated with the European view of American Soldiers–reliable, rugged, hard working, lacking refinement but able to get the job done when all means have failed. Jeeps quickly became the light military vehicle of choice for the allies and their military use spread around the globe over the next few decades.

Ford Pygmy

Jeep is not patented and trademarked as design or a term. Therefore jeep without a capitol “J” is the name of sports utility vehicles around the globe if they look like a Jeep. During WWII, a jeep was abandoned on a Japanese Island and the Japanese car maker Toyota created their own version, which explains the Landcruiser and FJ series from them. How in the heck does that happen? Prototypes are closely held secrets, what made Jeep a type of vehicle like pickup or sedan, instead of an exclusive model from one car company?

1940’s Willys Jeep

The origin of the design is found WWII. The US government saw a need for a lightweight 4×4 vehicle that could navigate bombed out roads and ford bridgeless streams. This would be a scout vehicle, capable of shuttling brass to strategic positions, or taking secret messages to command across apocalyptic terrain. They contacted 135 auto makers to compete for a contract. Their specs were so tough and the timeline, 49 days, so tight only two companies seized the chance to go after a lucrative military contract–American Bantam Car Company and Willys-Overland.

Bantam’s BRC 40

American Bantam recruited a designer, Karl Probst, who turned them down, but the government was able to twist his arm. He produced the design in two days using parts that were already manufactured so factories wouldn’t have to be retooled in order to begin production. The exception was the 4-whee drive drain which could be sourced by Spicer. `With plans submitted in 5 days, including blueprints and cost sheets, Bantam built their prototype by September 1940. It was perfect, except under powered. The other problem was that the Government doubted Bantam could make enough of the vehicles fast enough.

So the government essentially handed everything of to Willy’s who were already working on a prototype and Ford. Each produced independent prototypes and ultimately Willys married a “Go Devil” engine with the Bantam Design. It was heavier than initial specs but the government was happy with the final version. Willys granted the Government nonexclusive use of the design and the Government ordered 1500 vehicles from each of the three companies (Bantam, Willys, and Ford). After making 2600 jeeps Bantam switched to making trailers for the rest of the war.

Ford began stamping the F into many parts on the jeeps they made, so Willys-Overland followed suit. The Government eventually put an end to it, which likely lead to eventually creating a vehicle under the name Jeep in 1945–the Willys CJ-2A.

2022 Wrangler

640,000 Jeeps were produced for the war effort, and distributed to every branch of the US military, as well as the Great Britain and Russian allies.

Jeep imitations around the world include Delahaye and Hotchkiss et Cie, in France,  Mitsubishi Motors and Toyota in Japan, as well as pretty much every original Land Rover in the UK. In the Philippines abandoned jeeps were turned into taxis, often expanded to hold more passengers and later decorated with wild colors. These Jeepneys are part of the culture in the Philippines. In Iceland, the word Jeppi (derived from Jeep) is the general term for an SUV.

Eugene The Jeep

Surplus jeeps sold well in the US after WWII and Willys-Overland tried to grab the Jeep name touting their contribution to the original design and project. The Federal Trade Commission wasn’t buying it. So Willys staked their claim by being the first to market a Civilian Version, their CJ in 1945.

In the end, we can’t even be sure that the term jeep comes from GP as often claimed, as early as 1936 a comic book publisher named Popeyes pet “Eugene the Jeep” created by E. C. Segar.

Ram Trucks

Vital Stats: 2012-Present, Headquartered in Auburn Hills, Michigan, slogan “Guts. Glory. Ram.”

If the Ram story seems suspiciously short at 12 years, it’s because Ram was a brand under the Dodge marque prior to being spun off. Ram “Classic” trucks are made at the Warren Truck Plant in Warren, Michigan and at the Saltillo plant in Saltillo, Mexico. New series Ram pickups are made at Sterling Heights Assembly in Sterling Heights, Michigan.

In 2009 Chrysler emerged from chapter 11 a restructured company with Ram, Jeep, Dodge, SRT and Chrysler divisions under their own brand identities and management.

Traditionally, Dodge kept their light truck and other vehicle divisions somewhat separately branded from their cars. For example outside the US they used “Fargo Trucks.” So the idea of individual branding for Ram trucks isn’t a new concept to the company. In this case, it reflects certain opportunities that came with Fiat’s involvement and the departure of Diamler’s involvement.

2022 Ram 2500

Specifically, Dodge car division wants to go after hip, cool, and trendy buyers, while Ram Truck is targeting “Real Truck” customers. Ram is well aware of people who by a truck for the look with functionality an after thought. Given that Fiat owns Iveco who makes powerful commercial hauling vehicles, Ram is able to cozy up to a buyer seeking a functional pickup that looks cool as a happy side effect.

Noteworthy: The 1996 film Twister used a red 1995 Dodge Ram 2500 pickup truck as the storm-chasing vehicle. 

The long history of Dodge and trucks is spoken to in our post on Dodge. The first-generation “Ram trucks” were introduced in October 1980 and featured a Ram hood ornament first used on Dodge vehicles from 1932 until 1954.

Cummins B Series engine added to the engine lineup in 1989 gave Dodge their first big commercial success as their direct fuel injection didn’t require “glow plugs” like the Ford and GM Diesel trucks did.

Ram got some bad press from their  Super Bowl LII commercial featuring a speech from MLK Jr. in which he actually disapproves of advertisers. One of many examples of marketers attempting to be edgy only to dive headlong across the line of good taste.

Dodge Ram went through 4 generations of development dabbling in a modular design, but mainly optimizing engine, axels, drive trains, transmissions and ultimately giving the entire division a facelift for a consistent and cool new look. In a way, Dodge positioned Ram for success through decades of experimenting and the only thing Dodge couldn’t do for the Ram Truck has now been done by Stelantis through some savvy cross pollinating with other existing brands under their new umbrella.

Ram Trucks likely have a bright future in a competitive US Truck market.

 

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