Attention: TDR Forum Junkies 
What if the media was required to give you context whenever it quoted some kind of sensational headline that involved dollars, percentages, or other numerical figures?
What if I learned to avoid the numerical gibberish and provide the needed context for you? You bet, that would make a better magazine.
Enough rambling, here are some numbers from an article in Automotive News, July 7, “Chrysler Seeks More Diesels”:
“Fiat Group executives are looking at ways to produce more light-duty diesel engines for Chrysler Group vehicles.
“So far, Chrysler’s diesel experiment, which it launched last year, is working. Brand executives said demand is brisk for diesel-powered versions of the Ram 1500 pickup and Jeep Grand Cherokee SUV, the two vehicles that offer the 3.0-liter EcoDiesel.
“EcoDiesel engine maker VM Motori, a wholly owned subsidiary of Fiat Group, has capacity to build about 100,000 of the diesels per year, a source in Italy said.
“About half of those engines are destined for use in North America, with the rest used in other vehicles elsewhere across the globe, where diesel acceptance is stronger.
“Chrysler Group dealers in the United States began selling Jeep Grand Cherokees with the diesel last year and began offering the engine in the Ram 1500 half-ton pickup in March.
“Ram brand leader Reid Bigland said dealers have experienced ‘overwhelming demand’ for EcoDiesel-powered Ram 1500s since the trucks arrived at dealerships.
“‘We got well in excess of 10,000 orders in just the first few days that we opened this thing up, and that ordering and demand has really sustained itself,’ Bigland said.”
“Jeep brand leader Mike Manley said demand for EcoDiesel-powered Grand Cherokees, which have been available since 2013, has leveled off at about 8 percent. That would translate to about 15,000 EcoDiesel Grand Cherokees for 2014.”
Stop. End of quotes. End of the numbers game.
In order to provide some context it is time to do some math. Here goes:
• VM production: 100,000 engines
• Production allocated to North America (1/2): 50,000 engines
• Production needed by Jeep Grand Cherokee: 15,000 engines
Using my math skills from the third grade:
• Engines available to Ram for use in 1500 truck: 35,000 engines.
Does Fiat need to ramp-up production? Let’s go back to Automotive News for some commentary:
“Jeep’s Mike Manley acknowledged that demand for the engine in the Ram pickup has been strong, but so far, he said there is ‘no behind-the-scenes fight over allocation of diesel with Ram.’
“Ram’s Reid Bigland said diesel-powered pickups sit on dealer lots for an average of 13 days before being sold. That compares with 94 days for all Ram 1500s, according to Kelley blue book. Bigland said executives are balancing diesel demand between the Grand Cherokee and Ram 1500 for now, but wouldn’t say whether Ram had asked Jeep for any of its EcoDiesel engines.
“Said Bigland: ‘I’ll keep that between Mike and me.’”
Okay, folks, let’s not get caught up in written text, let’s try some context (cute, play on words).
I turned to the back of Automotive News and looked at the year-to-date sales numbers for Ram 1500s. The analyzed production for year 2014 should be about 430,000 units. So, if the diesel-in-Ram percentage is the same as diesel-in-Grand Cherokee (as noted, 8%) the Ram folks will need .08 x 430,000 or 34,400 units.
To me, it seems like the overall EcoDiesel capacity of 100,000 units is right on the money.
Thankfully, I am not responsible for future product planning, or it would be easy to get caught up in the initial big order numbers posted by the Ram 1500 EcoDiesel. Or, as Ram’s Reid Bigland discussed, is that number sustainable?
I just report the numbers and try to provide context.
Thankfully my pay is not based on big financial decisions.
