Marchionne: No decision on Jeep Wrangler production

There is still no decision on where the next-generation Jeep Wrangler will be built, according to Fiat Chrysler Automobiles CEO Sergio Marchionne.

The company, Marchionne said, continues to evaluate whether production of the iconic sport utility vehicle will remain at its longtime home at the Toledo Assembly Complex in Ohio.

“We have not made a determination in connection with the final allocation of the Wrangler,” Marchionne said during a press conference on the sideline of the 2015 North American International Auto Show on Monday in Detroit.

Marchionne said the company is “going to take a very hard look” at the situation without ignoring how much Toledo has helped Jeep.

Toledo Assembly workers produced more than half of the more than 1 million Jeeps sold globally in 2014, a milestone and record for the brand.

Marchionne, from the Paris Auto Show in October, caused a commotion in Ohio by saying enhancements to the next-generation Wrangler such as an aluminum body could mean significant changes to its manufacturing that would likely lead to production leaving its historic home in Toledo, where the first World War II Jeeps were manufactured.

Marchionne has continued to say another vehicle would likely take the Wrangler’s place and employment at the plant would not be impacted, but workers and Ohio officials have lobbied they would rather keep the Wrangler.

“Regardless of what happens with Wrangler, that plant will be fully utilized,” he said, adding cost is the biggest issue with keeping Wrangler in Toledo.

The Toledo mayor’s office as well as the Ohio governor’s office met with Marchionne weeks after his comments about possibly moving Wrangler production, but nothing was finalized. Marchionne said other meetings are planned with the delegates in the near future.

Marchionne said a decision on Wrangler production is “possible” before contract negotiations begin with the United Auto Workers this summer.

Part of the case for Toledo keeping the Wrangler could be to expand or move Wrangler production. The Toledo City Council in December gave Mayor D. Michael Collins approval to spend nearly $10 million to buy a 58-acre property and more than 32 acres in North Toledo, according to local newspaper The Blade.

Automakers see aluminum as a valuable material to help lower vehicle weight in order to increase mileage ratings to meet stricter U.S. fuel economy rules.

Toledo Assembly employs 4,850 hourly employees on two shifts. It also builds the mid-size Jeep Cherokee.

Separately, during the news conference, Marchionne said the company plans to sell 5 million vehicles globally this year, with continued focus on the globalization of Jeep and reintroduction of Alfa Romeo in the U.S.

“This year is a big year,” Marchionne said. “There are a number of pots that are boiling right now, all of which need to be controlled.”

Marchionne also said the automaker’s next-generation minivan will likely incorporate the name Town & Country, at least as a trim level. He said the next-generation minivan is anticipated to be unveiled at the 2016 North American International Auto Show, arriving in showrooms in the first quarter of next year.

mwayland@detroitnews.com

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