Is Jeep Carrying The Rest of FCA?

Mark Stevenson
by Mark Stevenson

Jeep is looking at global growth upwards of 20 percent this year to 1.2 million units and that’s before the brand truly ramps up in China.

Could it be possible Jeep’s success is hiding what ails other brands at the newly-formed Fiat Chrysler Automobiles?

Jeep is on track to record a best ever year in 2015 in terms of unit sales with many of the brand’s models returning higher profit margins than those at other marques under the FCA umbrella. However, there are still problems reports The Detroit Bureau, like the struggles with where to build Jeep’s next generation Wrangler.

“It’s a very important and very sensitive decision,” stated Michael Manley, president of the Jeep brand.

The utility-lifestyle brand is also running at or near capacity at their plants, just keeping up with demand, all the while being leveraged in order to prop up other brands financially. Money once meant to redesign the Grand Cherokee has been earmarked for Alfa Romeo. This seems to be true for other models at Jeep as well. On top of it all, Sergio Marchionne wants a Range Rover rivaling Jeep to conquest even greater transaction prices. If such a model existed, FCA could use even more cash to fuel development of new and redesigned models at other brands, but it seems Marchionne might be counting his chickens before they hatch as he drives Wrangler-loads of cash to Italy before such a Range Rover-ish model can come to fruition.

At some point, FCA’s Jeep gravy train is going to come to a halt, and dumping money into brands that look to only stroke the ego of FCA executives – instead of just dumping the brands themselves – will result in what Marchionne has been saying is the cardinal sin of the automotive industry: wasted capital.

Maybe the best way to save money, Mr. Marchionne, is the reduce the number of brands emblazoned on those dealer signs.

Mark Stevenson
Mark Stevenson

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  • Jeff S Jeff S on Jun 30, 2015

    The answer to the question is yes Jeep is carrying FCA but then Ram is doing its part as well. Short term FCA needs the revenue from Jeep and Ram but long-term even they will not be enough to keep FCA solvent. I think FCA's best bet is to merge or be acquired by another manufacturing which is what Sergio is trying to do. Lancia and Alfa are on their death beds with Sergio trying to revive Alfa with the Giulia which will probably not be enough. Fiat is not that strong either and Chrysler and Dodge are not carrying the load. Sergio is looking for a merger but it might take another downturn in auto sales to get anyone's attention.

  • Derekson Derekson on Jun 30, 2015

    This isn't quite on topic, but it is tangentially related and this seems to be the most recent/active FCA thread, so I have a question: Can anyone explain why the hell FCA is splitting their luxury segment strategy between Maserati and Alfa Romeo? It seems really bizarre that the nominal 5 and 7 series competitors are Maseratis but the 3 series competitor will be the Alfa Giulia. What possible advantage could this strategy have?

  • Corey Lewis Think how dated this 80s design was by 1995!
  • Tassos Jong-iL Communist America Rises!
  • Merc190 A CB7 Accord with the 5 cylinder
  • MRF 95 T-Bird Daihatsu Copen- A fun Kei sized roadster. Equipped with a 660cc three, a five speed manual and a retractable roof it’s all you need. Subaru Levorg wagon-because not everyone needs a lifted Outback.
  • Merc190 I test drive one of these back in the day with an automatic, just to drive an Alfa, with a Busso no less. Didn't care for the dash design, would be a fun adventure to find some scrapped Lancia Themas or Saab 900's and do some swapping to make car even sweeter. But definitely lose the ground effects.
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