Jeep, the crown jewel of Fiat-Chrysler’s coveted gold award

If the group bears the name of Fiat and Chrysler, this is not for those brands that the buyers are the most interested… These two brands splashed about for ages in their inability to reposition and renovate their product plan. No, the real nugget of Fiat Chrysler Automobiles (FCA) is called Jeep. A brand that has it all !

At the time of the boom of the SUV, Jeep is probably the brand that is most legitimate in the world in this segment with its past as a true 4X4 in the sense adventurer of the term.

Jeep is nearly 1.4 million cars sold in the world (2016), or one-third of the sales of FCA. Yet, the american brand a comeback. In 2009, during the financial storm in american, the brand had sold only 330.000 cars…

A product plan ambitious

This dynamism, it should not only to the recovery of the american market, the product plan has a lot to do. The arrival of the Renegade 2015 has enabled the brand to position itself in Europe by doubling its sales in less than a year. This small SUV can also be more offensive in Japan or in India, markets are very interested in this small SUV. The arrival of the new Compass, unveiled late 2016, but that will arrive in Europe in September, should also boost sales of the brand since it is the heart of the range Jeep. This SUV C-segment, the broadest category, is the one who should do most of the volumes as far as this version goes this time exceed u.s. borders and return to Europe, but not only, Latin America and China are in the viewfinder. So in the Jeep we hope to make Compass the lever that will allow the brand to reach 2 million cars in 2018 !

Also read our analysis : A chinese automaker at the wheel of the Fiat-Chrysler ?

The product plan does not stop there… A new Wrangler is expected in the coming months, probably with a declension pick-up. Of course, the Cherokee and the Grand Cherokee will not escape this wave of renewal, but rather by 2019-2020. But Jeep doesn’t want to stop there and will want to propose another SUV B-segment to expand its offering on this segment in large volumes, and is also thinking about a great SUV 7 seater for the United States and China. “Jeep is going to become a general practitioner of the SUV,” according to the expression of a spokesperson for the brand.

China in the viewfinder

Jeep tick all the boxes as it is a brand very strong, situated on a segment in a very strong growth and very strong margin, with an offer of full renewal, and above all, very internationalized. In China, Jeep is close to the threshold of 1% market share with 106.000 registrations in 2016. But with a growth of 105%, Jeep hopes to continue his dynamikque, and to achieve a real breakthrough on this huge market of 25 million cars.

No wonder that Great Wall is interested in a Jeep. The chinese group is the leading manufacturer of SUVS in the asian country with its brand, Haval, but it is still too small, the competition is fierce and the margins narrow. From the top of its 1.5 million cars, Great Wall could deliver strong synergies in the industrial field by acquiring a brand such as Jeep. Not to mention the expertise in quality to the american brand it would be. But Great Wall Motors, less than $ 10 billion in sales, will have to spend nearly $ 30 billion (as estimated by Morgan Stanley), if he wants to put the hand on the Jeep…

If FCA swear not to have any contact with Great Wall Motors… It would be surprising that no other trademark is not already in discussion with the firm, led by Sergio Marchionne to take over this jewel…

Like this post? Please share to your friends:
Leave a Reply