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FCA Will Say No to The Passenger Cars in The US: Just Stick to Jeep, RAM and SUVs

It was not all of sudden, the Fiat Chrysler Automobiles (FCA) had already announced to discontinue the 200 and the dart from the lineup. But it was not only limited to these cars, that was just part of the company’s bigger plan.

The FCA has decided to stop producing the passenger cars in the US by the early next year. However, the company will continue with the Jeeps, RAMs and SUVs, as the company evolves itself into an automaker well known for Pickups and SUVs.

The only exception to this new strategy will be the Dodge Durango which is currently produced alongside the Jeep Grand Cherokee at company's Detroit plant, and the low volume Dodge Viper that will be discontinued after the 2017 model.

If the reports from Detroit Free Press are to be considered, to end the passenger car production for the US market is the part of the FCA CEO, Sergio Marchionne’s multi-billion dollar plan, which is about to increase profit margins to match the competitors. The plan is focused on the growing SUV market in America, low gas prices and lower cost of vehicle production in Mexico.

You can also read: FCA to Manufacture New Jeep Vehicles in India from 2017 

During a conference call on Wednesday with the Wall Street analysts, Marchionne said, “By the time we finish with this, hopefully, all of our production assets in the United States — if you exclude Canada and Mexico from the fold — all those U.S. plants will be producing either Jeeps or RAMs.”

Further adding, he said, “I think our biggest task now is to close the operating margin gap with our competitors. That remains a permanent fixation that we have inside the house. I think we will be de-carred in the U.S. by (the first quarter) of 2017.”
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