Sergio Marchionne, the CEO of Fiat Chrysler Automobiles (FCA), is determined to more than double worldwide sales of the Jeep brand to around 1.9 million vehicles by 2018. The executive wants Jeep to grow significantly in regions such as South America and China.
Marchionne announced his plans for Jeep when he unveiled the new five-year product and business plan for Fiat Chrysler Automobiles on May 6. The CEO sees Jeep as one of the main pillars of growth for the company, as the U.S. brand is the only one from the group that will exceed the volume targets set in November 2009.
At the time, Marchionne set a target of more than 800,000 sales for 2014, up from 497,000 in 2008. Last year, Jeep sold 731,565 units worldwide (up 36 percent) and looks set to reach more than 1 million sales this year, with the entry-level Renegade SUV being a key model for growth.
Production of the Jeep Renegade will begin in June at the Melfi plant in Italy, which will make 150,000 Renegades a year. The facility will also build the Fiat 500X, which will be based on the same platform. The Renegade will also be built at a new plant in Pernambuco, Brazil, for South America markets. Pilot production there is scheduled to start later this year.
By late 2015, Fiat Chrysler will also begin Jeep production in China with local partner Guangzhou Automobile Group. According to Italian sources, the Renegade will be the first Jeep built in China. In 2016, Chinese production of a second Jeep model will begin, most likely a compact SUV that will replace the Compass and Patriot.
Fiat Chrysler also plans to build the Jeep Cherokee in China by the end of this year, at the Changsha plant that currently makes the Fiat Viaggio and Ottimo compact cars.
By Dan Mihalascu
Story References: Jeep and Autonews Europe
PHOTO GALLERY
