Category Archives: Jeep

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Mondial de l’Automobile Paris 2012, the news from Fiat-Chrysler

Paris Autoshow is the next important car exhibition show in Europe. It will take place from September 29th till October 14th 2012 and is expected to be a regular autoshow without any espectacular launches due to European economic crisis. However it will be the place for the introduction of new generation of Renault Clio (the most important car in the event) and some other important cars from Germany. As it gathers all major auto press of the world, all car makers should introduce whether  a new car, a revised or new versions of existing models. From Fiat-Chrysler Group there will not be a lot of news. This is because Fiat is delaying all its launches waiting for better times and because the group is now focusing in other important markets with higher potential such as China, Russia, India or even Brazil or USA.

This is the render for Maserati Quattroporte 2013 shown by Italian car magazine, Quattroporte

The most interesting launch of the group will be the new generation of Maserati Quattroporte. It is expected to be larger, more powerful and luxury to gain more market share as the brand wants to reach 60.000 units by the year 2014 from 8.000 units sold last year. According to Quattroruote magazine, it will be lighter, but larger and will be moved by a V8 and V6 engines. Though they say it will be only presented in Detroit 2013 because they Fiat guys will be concentrated in the arrival of Super Ferrari with more than 800 hp. Another release will be the Fiat Panda 4X4, based on the current Panda but higher and better suspension. The mini car is suposed to hit the market as the unique full four wheel drive available with interesting prices. Of course there will be place for the Fiat 500L and maybe they could show the 500XL, but the reality should place it in Geneva 2013. Maybe new versions for the Fiat 500, while the Punto could get more engines. Ferrari, as said before, will show its new super car to replace the Enzo, and is expected to have more than 800 hp. Certainly it will be one of the stars of the event. From the other brands nothing new.

It shows how it looks the new Fiat Panda 4×4 according to carscoop.blogspot.com

Is a pity brands such as Alfa or Lancia, or even Fiat don’t have anything really new. Paris is a big event where all Europeans brands show their best. It would be the perfect place to present new generation of Fiat Punto, that should not be delayed anymore as it is a core product of the company. Alfa Romeo should have the new Giulia or at least the Giulietta Station Wagon or MiTo 5 doors, but again they will take more time and therefore there will be less sales. Lancia should present a deep restyling of the beauty Delta, which is rapidly loosing market share in Italy. Maserati should not only present the new Quattroporte but also the new E-segment sedan (supposedly called Levante) if they really want to multiple their sales by 10. And Jeep should be thinking of a great successor for its compact Compass. Marchionne could be waiting more time to save some money, but consumers might not be waiting more to change their car. And it works even more when talking of the Punto. Paris 2012 will be the place.

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More production of successful Jeep Wrangler

Jeep Wrangler Unlimited Altitude version. Photo by netcarshow.com

Chrysler Group has announced they will add more work force to their Toledo Assembly plant to increase production of Jeep Wrangler. Chrysler wants to maintain the enormous success of this Jeep but is struggling to rise production as Toledo plant is the only one that produces it in the entire world. Currently there are 500 people working there, but they are now expanding the capacity and 1100 more workers will be hired by 2013. The Wrangler and Grand Cherokee are Jeep’s chosen products to make Jeep a global brand, according to Marchionne. Last year the old style Jeep sold more than 150.000 world wide from which 122.460 were delivered in the US market, up 30%. This year the success continues as it has sold 56.410 units in the first 5 months of the year, up 35%, making of it the 5th best selling car of the group in America, after the Ram, Jeep Grand Cherokee, Chrysler 200 and Dodge Caravan. Since the 5 door version (called Unlimited) was introduced in 2007 sales have been always rising and now that American car market seems to be recovering, it’s time to gain more market share and go abroad.

Source: Good Car Bad Car

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China: the countdown has finished

Today is a special day for Fiat-Chrysler Group. After some years dealing with unsuccessful joint ventures, the group has finally began its new age in China. Sergio Marchionne, Olivier Francois, and Mike Manley, among several others, have inaugurated the plant with their Chinese partner, Guangzhou Automobile Group in Changsha in central China. It is the place where from today the ‘Fei Xiang’ model (aka Viaggio) will be produced reaching in the first year 140.000 units  in a plant that can produce 400.000. Fiat has a lot of expectations about this product because it will be the last opportunity to finally sell a competitive car and get  an important part of Chinese sales. Last year the brand sold only 991 cars while GM or VW sold more than 2 million units. Although the group has arrived late in this important market there is a good mood about Italian cars and therefore they expect interesting results to reach 200.000 units by the year 2014, not bad, but very far from its European competitors. The Viaggio (aka Dodge Dart) is part of a new model that will be sold globally and is expected to arrive in Europe in 2013 with other body type to replace the bad sales figures of Fiat Bravo. Therefore it belongs to Chinese C-segment, the country’s largest: almost 5 million units sold that represent 20% of the market.

A Jeep Ad in China

But it is not the only news coming from China. Today they also began official sales of Chrysler 300 imported from America. That’s why the car will have a very high price in a unique version at 486.900 yuan or $76.000. The price will certainly affect its sales to become a car only for real fans as all its competitors from Europe (Audi-BMW-Mercedes) offer cheaper versions of their E-Segment cars. It means the official comeback of Chrysler but if they want to get an interesting piece of this important segment (6% of Chinese market) they must consider building it in China. Meanwhile Jeep is considered the brand with highest potential in China and that’s why Fiat may be considering building them in the same plant of Changsha (close to Hong Kong). In the other hand there is also Alfa Romeo, that according to Dunne & Co, a specialized company in Asian car markets, Chinese consumers love Italian fashion and Alfa could benefit from that feeling only if they offer the best products. A lot of opportunities that only confirm what Marchionne said: “We have a lot of work to do.”

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Jeep to arrive soon in India

Fiat has announced that is planning to introduce Jeep brand in India in the next months. After deciding to split operations with Tata, and have its own dealerships, it’s time for Jeep to arrive. According to Indian car website, Car Dekho, Jeep SUVs will have exclusive dealerships also and service to offer at the begining the Grand Cherokee, starting at $4.500.000 Rupies (US$82.000). The high price is explained as the car will not be produced locally. Anyway months later is expected the Liberty starting at $2.500.000 rupies (US$45.500). India is one of Fiat-Chrysler group’s target market to reach 6 million units by 2016. Last year the whole market sold 2,4 million cars, from which 11.1% were SUV, around 270.000 units, most of them (124.000) small SUVs followed by C-segment SUVs (103.000). It means SUV segment is India’s third largest one after A and B-segment. Besides, it is expected a continuos and rapid growth on total car sales for the coming year as most population (world’s second largest) does not have a car yet. Fiat Group’s World data base considers Jeep can sell around 10.000 units by the year 2016 based on future growth of the segment and new products.

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Fiat-Chrysler begins its come back to China

After the presentation of Fiat Viaggio in Beijing Auto Show 2012, the Group is getting ready to enter the Chinese market with some of its brands. The Viaggio will be the, by the moment, the only product to be produced locally, but more products from Fiat brand as well as Dodge and Chrysler will soon join Jeep in world’s largest market. Fiat will be initially present with the C-segment sedan, and will import both, the 500 and Freemont from Mexico. The small one will be offered with some specific changes while the large MPV will be offered with the 173hp 2.4 engine. It is also expected the return of Chrysler with its big sedan, the 300C imported from Canada. After being produced in China during Daimlers era, this sedan will go back to China with its facelift and much better interiors to compete with of Germans in D-segment in large version configurations. Its launch will take place in June 26th and its price should be 500.000 yuans (US$79.000). Dodge is also getting ready. Some spy shots reveiled by the site CarNewsChina.com showed its Journey (is the Dodge version as the logo can be seen in the steering wheel). It means that China will be, as it is Brazil, another market to have both models available, Fiat Freemont and Dodge Journey. Nevertheless, it is expected the Journey to be more expensive as it will have a better engine of 283hp 3.6 V6. Its price is not expected to be far from Freemont which starts at $250.000 yuans (US$39.000). All of these models will join the only brand of the group that has not interrupted its presence in China, Jeep.

Dodge Journey/Fiat Freemont. Both models are available in Brazil and soon in China. Photo by autoesporte.com.br

Jeep models are available in China in 120 dealers. They are all imported from North America and it makes them really expensive SUVs. No matter its representation in the country has changed a lot during the last 30 years (its owners were always changing) the brand still has a good reputation among Chinese. Last year they sold 19.013 units, up 63% compared to 2010. Is a small number compared to competition but it can be seen as a good starting point for future sales with local production. In fact Fiat-Chrysler’s plan include the start of production in 2014. In the meantime, Jeeps will continue to be well recognized, and its sales will rise without reaching the big numbers local production means. It is because imported cars are highly taxed by Chinese authorities and it makes Jeep products really expensive: the Grand Cherokee starts at $576.000 yuans (US$91.000). All of that means that Fiat has a lot of potential but they need to start local production as soon as possible if they want a respectable place in this important car market.

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What comes for Jeep

Jeep, as Alfa Romeo, is considered one of Fiat-Chrysler’s best brand names. This SUV company is valuable for its global recognition, its glorious past and its promising future. It is one of the few only-SUV manufacturers and this allow it to specialize, offer great products and fulfil a fast growing segment in the whole world. There is certainly a long way to go to reach 800.000 units by the year 2016 as Marchionne said, but maybe it is a small number considered its big potential.

Jeep Wrangler. Photo by netcarshow.com

Jeep Wrangler. Photo by netcarshow.com

The SUVs from Jeep are present in several markets, but the big part of their sales are located in North America. Last year they had great sales numbers thanks to American economic recovery and very assertive marketing campaign. Although the range has not been deeply modified, during the last years (the only all-new model is the Jeep Grand Cherokee), the brand is going through a good period thanks to what they did very well some years ago: its popular Wrangler. This mid size Off-road still enjoys of high monthly sales figures due to its incredible mix of hard working vehicle with classic design. But Wrangler is not the only one. The all new Grand Cherokee has become a referent of large and luxury SUVs. It has been recognized as an excellent product with no problems when it has to compete with Germans or British. These two successful cars make part of a range of products that include also the compact SUVs, Compass and Patriot, not as popular as their brothers but with some interesting numbers. Jeep sells around 80% of its cars in the USA, 8% in Canada and has some presence in Mexico, Europe and the Middle East. By models, Grand Cherokee counts for 30% of total sales, followed by the Wrangler with 29%, the old Cherokee with 15%, and then the couple Compass/Patriot with 11,7% and 14,4%. Their sales performance in the US has been positive since May/10, while in the total sales for the year 2011, were up 44% (the total market grew up 10%).

Jeep Grand Cherokee SRT8 with 465 HP. Photo by netcarshow.com

Jeep Grand Cherokee SRT8 with 465 HP. Photo by netcarshow.com

Those numbers must be considered as the begining of next 5 years plan in which Jeep must reach 800.000 units globally. For doing so, they have to expand their business and consider growing markets outside the US. They have to increase their presence in the Middle East, where SUV segment had a market share of 34%, world’s largest. For that they must develop new concepts of SUV, larger ones than Grand Cherokee and focus on luxury. Something that is becoming popular in other markets such as China (where SUV segment has an enormous potential; in 2011 it was 13,5% of total sales) and Russia. The last  news from Russia tell that there will be a factory for bulding Jeeps there in order to have a better access to this important market. In that context, Jeep could reach around 55.000 units in the whole Middle East region (GCC), 34.000 in China and 15.000 in Russia. On the other hand, Europe can become an interesting market only if they develop a unique succesor of the Compass/Patriot to be more competitive and look more compact just as Europeans like them (Ex: Nissan Qashqai). In this continent they can reach 132.000 units, 47.000 of them in Italy. Meanwhile they should forget that rumor of sharing a small SUV with Fiat, as Jeep is known for its hardiness and big SUVs. In other words, they have a great name and a big challenge to become global, but doing the right things in the right moment, will become a reality.

Jeep Renegade Concept. Rendering by hyundaigenesisblog.com

Jeep Renegade Concept. Rendering by hyundaigenesisblog.com

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Looking for opportunities: Middle East car market

Photo by Richard Allenby-Pratt, photographer

Jeep Grand Cherokee. Photo by Richard Allenby-Pratt

When it is about big SUV and trucks most of people think of American market. Certainly the US is known for being the place for large Ford, Rams, Sequoias and Tahoes. Their big roads and consumption have made these cars another product to be part of their lifes. But what most of people don’t know is that far away from there, in a really different culture, the big SUVs from Detroit and Japan find their world’s largest market share: the Middle East.

Thanks to great website bestsellingcarsblog.com, more information has been able about what it is called the Gulf Cooperation Council, composed by Saudi Arabia, United Arab Emirates, Bahrain, Kuwait, Oman and Qatar. And the numbers they gather together are not trivial. In 2011, more than 1.2 million cars, which represents a market larger than Australia’s and just behind South Korea’s or Canadian one. It is obvious that the good economic situation of these countries thanks to their big quantities of oil reserves, has translated to better economic conditions to some of their population. The strong and fast development can be seen in amazing cities as Dubai, Abu Dhabi or in the island of Bahrain. According to useconomyabout.com this rich economic bloc has an estimated population of 39 million inhabitants with an income per capita that goes from US$24.200 in Saudi Arabia up to $179.000 in Qatar!

Photo by netcarshow.com

Maserati Kubang. Photo by netcarshow.com

Those numbers, along with their will to educate their people in order to expand their position in the world, have made of this region an important pole for all kind of investments. Car manufacturers have realized the importance of being there, specially after analyzing this particular market. The GCC is world’s largest market for SUV in terms of market share. All kind of SUVs count for 34% average of market share, which is higher than the historical SUV market, America, with 30%. Arabs don’t have any problem with gas prices, while their roads are big enough to allow the largest SUV to go around. That’s why it is not hard to hear that best selling car is the Toyota Land Cruiser, or to see lots of Nissan Patrol, Chevrolet Tahoe or Ford Expedition. Just in Qatar, 18% of total sales during 2011, corresponds to large SUV (F 4X4 segment)! On the other hand, small cars are really difficult to see as they count only 0.5% of total market.

 In this context SUV makers as Jeep must find an important place. Jeep’s portfolio offers models from C to E SUV segments and fit perfectly the needs of people desiring big and powerful offroads. In 2011 the brand, along with the Dodge Durango had an average market share of only 2.1%, very far from the absolute king, Toyota. Unfortunatelly, the brand is not well known in these countries and the competition with GM and Toyota makes things even more difficult. Anyway, taking into account the image Jeep has, its background making real SUVs, and the latest products such as the unique Grand Cherokee or the classical Wrangler, it is perfectly possible to reach bigger numbers. In fact personal forecasts take to 55.000 units of Jeep by the year 2016, after repositionating the brand and offering even larger and more luxury products than the Grand Cherokee. Ofcourse, that goal does not include the great welcome extra luxury SUVs from Maserati would have during the coming years, another brand to develop in this reach region.