NEWS
Jeep to fly the flag
SUV brand will march at the forefront of Fiat Chrysler's global advanceThe powers that be at Fiat Chrysler Automobiles (FCA) have set a tough goal for off-road brand Jeep: lift sales to 1.9 million within the next four years.
How tough is that exactly? Try close to 260 per cent of last year's global sales...
Jeep's new remit was part of a bigger story: FCA's business plan for the next four years, titled START 2014-18. Currently, the top-selling brand in the FCA empire is Fiat, but if everything goes to plan Jeep is expected to overtake Fiat around 2018.
It may seem like the sort of hype car companies often indulge in, but in Jeep's case there's some substance behind the plan. The company has already lifted its sales projections for 2014 from 770,000 to around a million units, based on consecutive sales records in 2012 and 2013. Last year Jeep sold 732,000 vehicles, rather than the forecast 557,000, and in April of this year the company pushed 85,000 units out the door – a record monthly total in Jeep's 73-year history.
Jeep expects some sales volume growth between now and 2018 to result from merely being present in an expanding market segment (SUVs). But the company will be working actively to create sales opportunities through an expanded global dealer network and a wider product portfolio, and supporting that with new production plants around the world.
Jeep production – currently based in North American plants only (Belvidere, Toledo North and South, and Jefferson North) – will increase as new plants are established in India, China, Brazil and Europe between now and 2018. Capacity is estimated to peak at 200,000 in Europe, 200,000 in Brazil and 500,000 between China and India, with output from North American plants expected to hit the million mark.
The model range will expand above and below; the B segment Renegade coming on-line from later this year (with a local launch in 2015), and the large, seven-seat Grand Wagoneer – Jeep's long promised replacement for Commander – due in 2018. In addition, a new C segment SUV – yet to be officially named – will replace Patriot and Compass around 2016. That leaves Wrangler, Cherokee and Grand Cherokee to soldier on in their current roles.
For Karla Leach, Director of Corporate Communications at Fiat Chrysler Group Australia, it is "great to see clarity" in the company's future – and not least of all because Jeep is already far and away the strongest FCA brand in Australia. Achieving the sort of sales growth anticipated for 2018 won't be easy, but START 2014-18 promises plenty of reward for the local end of the global operation, which is "in a position to embrace this ambitious plan."
Overall, the presentation was a "very optimistic message for all our brands," Ms Leach told motoring.com.au today.
The global sales target for Jeep was not the only challenge FCA set itself over the next four years. Chrysler has been charged with increasing its sales from 350,000 last year to 800,000 by 2018. Unlike Jeep, however, Chrysler is really being asked to do no more than it was achieving prior to the Global Financial Crisis anyway. It's a clear sign of the damage done to Chrysler by the GFC that the company had peaked at 801,468 sales globally in 2005, only to see sales slump over the two-year period of 2008 and 2009 to 225,000. Chapter 11 bankruptcy proceedings saw the company's sales volume recover to 350,000 in 2013, but that's still a long way shy of its 2005 record.
Chrysler intends to capitalise on its product strengths in minivans and full-size cars, but there's also plenty of potential in its 200 model, which competes in the US mid-size car segment, and Chrysler aims to pick up further sales by introducing a small car and two cross-over SUV models – one mid-sized and one full-sized.
The C segment passenger car is scheduled for launch in 2016, and around the same time the company will introduce a plug-in hybrid minivan (people mover), with the full-size cross-over SUV due in 2016 – also with a PHEV variant on offer. That model will compete directly with Ford's Explorer, the Nissan Pathfinder and Toyota Highlander (Kluger), among others. The mid-size cross-over will arrive in the final year of the plan, in 2018. It is aimed at snatching sales away from Hyundai Santa Fe, Kia Sorento, Nissan Rogue (X-TRAIL) and other competitors.
Not only will the incremental gains from these new products and updates of the other Chrysler models in the range build the company's sales base to 800,000 in four years, the company claims, the target will be achieved with lower market share than during the record year in 2005. According to the company's own forecast Chrysler's market share in 2018 – even with 800,000 sales – will be just 6.4 per cent of the market. In 2005, on the basis of 801,468 sales, the company boasted 7.7 per cent market share. That's an indication of how much the market will increase in size by then – in Chrysler's view, at least.
Share this article
Written byKen Gratton
See all articlesOur team of independent expert car reviewers and journalistsMeet the team
Stay up to dateBecome a carsales member and get the latest news, reviews and advice straight to your inbox.
Related articles
Disclaimer
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
If the price does not contain the notation that it is "Drive Away", the price may not include additional costs, such as stamp duty and other government charges.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
If the price does not contain the notation that it is "Drive Away", the price may not include additional costs, such as stamp duty and other government charges.
Contact
Local marketplaces
International marketplaces
Download the carsales app
