Jeep Points to Map of India, Says Let's Print More Money Here
More and more automakers are looking at exotic locales to produce their wares (us Canadians can consider Mexico exotic thanks to its ice-free beaches) as they expand their brands and explore in-roads to untapped markets.
For Jeep, that means investing in a shared money-printing press with an unlikely partner: Tata, the parent company of Land Rover. FCA will put $280 million USD into joint venture Fiat India Automobiles Private Limited which, since 2007, has solely produced Fiat models.
The investment will “support the production of a new Jeep vehicle and is expected to begin production in the second quarter of 2017,” according to statement released today by FCA. Jeep did not give further details on the new model.
With Sergio Marchionne’s hunger for consolidation, this could be seen as a sign of interest in a more formal arrangement between FCA and India’s Tata, especially when you consider the FCA executive’s desire for a Range Rover-esque model.
“We are pleased that this investment will strengthen FCA presence in India and are confident in the ability of the joint venture to produce world class products like those carrying the legendary Jeep nameplate,” Marchionne said.
This announcement is part of a wider expansion by Jeep into new markets. From The Detroit News:
FCA plans to produce 1.9 million Jeeps by 2018 at 10 plants in six countries: the U.S., Italy, China, Brazil, India and one other yet-to-be-announced country. Two years ago, only 798,000 rolled out of four plants in the United States.
"Hey Jan, let's take up the whole boat slipway by setting up our hammock on the telephone pole!" "Good idea, Geri." Trigger: WOOF!
Actually, they're waiting for the tow truck to arrive.
You could almost look at it like this, every brand has been ruined by some race to win some market share. They're all past their hey-day even if they can maintain strong sales. Jeep, while past its hey-day to all enthusiasts, still has a semblance of what made it what it is today. Giving it an unlimited rein to do what every other automaker has done to they're respective brand, all to Jeeps self. That is, to sell crap that sucks, but is cheap enough to gain market share. It's not a pretty picture when it all comes crashing down, but how many CEOs care about their companies sustainability past their last paycheck? Edit: By crap, I mean product that doesn't represent the brand image or what it's being sold as. i.e. The perfect sports car would be placed wrongly as a Jeep.
Getting India addicted to cars is only going to make gas prices go up here you know.