{"id":23646,"date":"2019-04-12T17:01:01","date_gmt":"2019-04-12T21:01:01","guid":{"rendered":"http:\/\/henrypayne.com\/?p=23646"},"modified":"2019-04-12T17:01:01","modified_gmt":"2019-04-12T21:01:01","slug":"jeep-mega-brand-transforms-fiat-chryslers-future","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2019\/04\/jeep-mega-brand-transforms-fiat-chryslers-future","title":{"rendered":"Jeep mega-brand transforms Fiat Chrysler&#8217;s future"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/fe70bf7d-2b07-4e8c-aac0-9832dc7a8394-JP019_136WR9k5puq0i79p06vmv86qbqibpih.jpg?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"2019 Jeep\u00c2\u00ae Wrangler Rubicon\" \/><em>2019 Jeep\u00ae Wrangler Rubicon\u00a0<span class=\"credit\">(Photo: FCA US LLC, \u00a9 2018 FCA US LLC)<\/span><\/em><\/p>\n<p class=\"speakable-p-1 p-text\">The Detroit auto industry is undergoing historic change as General Motors and Ford place big bets on the future of mobility with bold investments in autonomous and electric vehicles.<\/p>\n<p class=\"speakable-p-2 p-text\">But perhaps the most fundamental change in Detroit is coming from the smallest of the Big Three, Fiat Chrysler Automobiles, where a new Jeep mega-brand has emerged to put the company on its firmest footing in decades.<\/p>\n<p class=\"p-text\">Traditionally the most fragile of the home automakers, the now Italian-owned company has needed transfusion from the U.S. government twice in the last 40 years as its volume Chrysler and Dodge brands struggled to stay afloat in a market besieged by cheaper, more reliable Japanese imports.<\/p>\n<p class=\"p-text\">That has changed dramatically this decade as Jeep has emerged as the company\u2019s volume brand and Chrysler and Dodge have faded to niche status. Indeed, Jeep was the badge that kick-started the SUV revolution three decades ago. Today, it is not only considered the pre-eminent utility brand with the highest transaction prices in segment, it is one of the most recognized brands in the world.<\/p>\n<p class=\"p-text\">&#8220;The foresight that the leadership team had five or six years ago was genius,\u201d says Jeep North America chief Scott Tallon. \u201cIt was the right time to make those decisions and let them develop, and we have been very fortunate and we will stay hungry in the marketplace.\u201d<\/p>\n<p class=\"p-text\">Significantly, this brand-build has been the focus of Fiat Chrysler&#8217;s expansion efforts \u2013 not autonomy or electrification, like its Detroit peers.<\/p>\n<p class=\"p-text\">FCA CEO Mike Manley says Jeep is committed to offering autonomous and electric features in its vehicles by 2021, but it is not on the expensive, technological frontier with new brands and platforms like GM (GM Cruise\/new EV platform). It appears content, instead, to partner with other companies (Waymo) on autonomy while offering hybrids on existing gas-powered platforms.<\/p>\n<p class=\"p-text\">Jeep sales numbers tell the story.<\/p>\n<div id=\"module-position-RtGx_R_gWs8\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/14771830-95c0-492c-95ba-b5fe742aee25-JP019_133WR3uqlnf60u82sikv5opb9hf758p_2.jpg?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"2019 Jeep\u00ae Wrangler Rubicon\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/14771830-95c0-492c-95ba-b5fe742aee25-JP019_133WR3uqlnf60u82sikv5opb9hf758p_2.jpg\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/14771830-95c0-492c-95ba-b5fe742aee25-JP019_133WR3uqlnf60u82sikv5opb9hf758p_2.jpg?width=500&amp;height=333\" \/><em>2019 Jeep\u00ae Wrangler Rubicon\u00a0<span class=\"credit\">(Photo: FCA US LLC, \u00a9 2018 FCA US LLC)<\/span><\/em><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\">As Chevy and Ford retrench\u00a0\u2014 eliminating sedans and closing factories \u2014\u00a0Jeep is actually expanding into two new high-volume segments and building a new Detroit factory. This spring, Jeep enters the midsize pickup market with the Gladiator, a formidable truck based on the iconic Wrangler SUV \u2014 but with significant bed and towing capability. And Jeep will also soon go head-to-head against its Detroit rivals in the super-sized, three-row SUV market with the Wagoneer and Grand Wagoneer.<\/div>\n<\/div>\n<p class=\"p-text\">This continues Jeep\u2019s rapid transformation into Fiat Chrysler&#8217;s volume brand with sales of nearly 1 million units in 2018, up from just 441,000 15 years ago.<\/p>\n<p class=\"p-text\">Internationally, Jeep sales have soared to over 1.5 million. FCA CEO \u2013 and former Jeep boss \u2013 Mike Manley is bullish about Jeep\u2019s position.<\/p>\n<p class=\"p-text\">\u201cWe believe (IHS Markit&#8217;s)\u00a0global industry forecast for 2022 of 37 million,&#8221;\u00a0he told investors last year. &#8220;By 2022 we are targeting one\u00a0Jeep sale for every 12 UVs sold in the world with a future vision of one in five. That compares to 1 in 23 in 2009.\u201d<\/p>\n<p class=\"p-text\">So rapid is Jeep growth in Europe that it announced a deal with Tesla this week to offset the emissions from its red-hot SUV sales.<\/p>\n<p class=\"p-text\">Compare apples-to-apples sales of the Chevy and Jeep brands in 2018, and the numbers were very close. Remove pickup trucks (Jeep didn\u2019t sell any) and the three sedans that Chevy is discontinuing (Cruze, Impala\u00a0and Volt), and Chevy sold a total 974,105 sedans and SUVs in 2018. Jeep sold 973,227 SUVs.<\/p>\n<p class=\"p-text\">\u201cOur clear mission is to be a full-line SUV brand and expand into segments where it makes sense for Jeep,\u201d says Tallon. \u201cAnd pickups are a natural extension.\u201d<\/p>\n<p class=\"p-text\">Veteran Wall Street analyst Joe Philippi of Auto Trends Consulting says that the sky is the limit for Jeep, given its rare status as a brand that appeals to mainstream and premium buyers alike.<\/p>\n<p class=\"p-text\">\u201cFCA is just starting to leverage the Jeep brand,\u201d he says. \u201c(Ex-CEO Sergio Marchionne) and Manley worked behind the curtain to push the organization to broaden Jeep\u2019s portfolio. Sergio always had a soft spot in his heart for Jeep. He understood what the brand meant.\u201d<\/p>\n<div id=\"module-position-RtGx_R_kKPs\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/354b0191-8c01-4666-917b-68641dd9042f-tdndc5-74u6qseweti1gcwob9uu_original_1.jpg?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"King of the Hill. The 2020 Jeep Gladiator is the most capable off-road pickup. Starting at about $35k, it has best-in-class 4x4 towing and payload.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/354b0191-8c01-4666-917b-68641dd9042f-tdndc5-74u6qseweti1gcwob9uu_original_1.jpg\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/04\/11\/PDTN\/354b0191-8c01-4666-917b-68641dd9042f-tdndc5-74u6qseweti1gcwob9uu_original_1.jpg?width=500&amp;height=333\" \/><em>King of the Hill. The 2020 Jeep Gladiator is the most capable off-road pickup. Starting at about $35k, it has best-in-class 4&#215;4 towing and payload.\u00a0<span class=\"credit\">(Photo: FCA US LLC, \u00a9 2018 FCA US LLC)<\/span><\/em><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\">Given the brand\u2019s strength, Phillippi also believes that Jeep and Fiat Chrysler\u00a0don\u2019t need to invest in EVs the way GM and Ford are doing. He says that EVs will become viable when batteries become a\u00a0 reliable propulsion source.<\/div>\n<\/div>\n<p class=\"p-text\">\u201cWhen that opportunity comes, then Jeep has the brand strength to develop an EV platform,\u201d the analyst says. \u201cThey can let the other guys spend the money on developing battery tech.\u201d<\/p>\n<p class=\"p-text\">With Jeep still an SUV brand, Fiat Chrysler\u00a0is vulnerable should the market shift back to sedans as it did in the 2009 Great Recession. But most auto analysts \u2014\u00a0as well as companies\u2019 internal predictions \u2014 see a permanent shift to SUVs as well as long-term, stable, cheap energy prices.<\/p>\n<p class=\"p-text\">If that\u2019s the case, says Phillippi, then Fiat Chrysler has another ace up its sleeve with Ram, which has been expanding its truck market share as well as its brand cred.<\/p>\n<p class=\"p-text\">\u201cWith Jeep and Ram as their volume vehicles, FCA is more valuable than ever,\u201d he says. \u201cAnd they are in apposition to expand Ram as and SUV brand just as GM has done with its GMC truck brand.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2019 Jeep\u00ae Wrangler Rubicon\u00a0(Photo: FCA US LLC, \u00a9 2018 FCA US LLC) The Detroit auto industry is undergoing historic change as General Motors and Ford place big bets on the future of mobility with bold investments in autonomous and electric vehicles. But perhaps the most fundamental change in Detroit is coming from the smallest of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/23646"}],"collection":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/comments?post=23646"}],"version-history":[{"count":0,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/23646\/revisions"}],"wp:attachment":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/media?parent=23646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/categories?post=23646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/tags?post=23646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}