The Jeep brand is Fiat-Chrysler’s biggest money maker, so it’utes no wonder that CEO Sergio Marchionne is scattering factories around the world like a sailor’s offspring.
The company’s head honcho layed out his business plan for the brand in an interview published by Automotive News, and it involves no more having to make a “Sophie’s Choice” decision with Jeep output.
Explosive Jeep product sales, coupled with that of Ram, make up for the declining Dodge and Chrysler manufacturers and allow FCA to post a profit, despite trouble in its small vehicle lineup. However, global need outstrips existing production capacity, meaning the actual Jeep-hungry American market will get its fill, while overseas markets get an empty plate.
Building 4×4 factories in developing markets gives Marchionne a hedge against domestic uncertainty, and he’utes just gotten began laying the bricks.
“One of the things that we’ng always faced in the usa in the production of Jeeps is to make this unfortunate Sophie’s Choice about regardless of whether we sell in the U.S. or even sell overseas,” Marchionne stated, adding. “Even if there were a contraction of the U.S. marketplace, there is in our view unexplored potential in terms of [overseas] marketplaces, especially where we have not established local manufacturing.”
The target markets for that Jeep brand are Europe, the Asia-Pacific region and Latin The united states. Smaller, fuel-efficient models such as the Renegade and what ever replaces the Compass/Patriot twins seem tailor-made for those high-growth regions.
Last year, FCA added 4×4 Cherokee manufacturing capacity in China and a Rebel production line within Brazil. This year, Rebel production comes to China, with the Compass/Patriot replacement planned for Mexico, China and Brazil.
The 3 years after that will see Rebel production come to India, and U.Utes. capacity grown to handle Wagoneer, Grand Wagoneer, and Wrangler pick-up. A sub-Renegade mini-SUV, based on a Fiat platform, might be in the works best for the Indian, Indonesian and African markets.
Marchionne desires first-time overseas Jeep purchasers to get hooked on the company, and move up to larger and more expensive Jeeps because they grow in age and affluence.
If Jeep volume grows the way he hopes, Marchionne won’capital t have to break the sweat finding someone to create Chrysler 200s and Dodge Darts for him.