By on June 28, 2018

2017 Jeep® Renegade Limited

Jeeps smallest U.S. offering stands to be hit hard by proposed import tariffs, according to calculations from an investment advisory firm, and the volume of vehicles Fiat Chrysler brings in from outside U.S. borders would see the automaker take it on the chin.

With the Trump administration mulling a range of tariffs, the firm tabulated just how much the import duties could cost FCA. If the tariffs come to pass, expect to see fewer Jeep Renegades on your local dealer lot.

Data from Evercore ISI, published by Automotive News, reveals that a 25-percent tariff on vehicles built outside U.S. borders would cut into FCA’s profits to the tune of $866 million a year. That’s the worst-case scenario.

If instead Trump goes ahead just with his 20-percent tariff on European Union imports, FCA’s loss isn’t as great, but it’s still hefty. $613 million. The bulk of the loss stems from a single model FCA trucks in from Italy — a subcompact, Fiat-based crossover that made up roughly two-thirds of the 158,553 vehicles FCA imported from non-NAFTA countries in 2017: the Jeep Renegade. Last year, Americans bought 103,434 Renegades — a slight decrease from 2016’s volume.

2016 Jeep® Renegade Latitude

In total, FCA imported 136,827 vehicles from EU nations last year. The entirety of vehicles sold under the Alfa Romeo, Maserati, and Fiat banner also originate outside the U.S., though FCA surely isn’t concerned all that much by the latter brand. Models not hailing from NAFTA countries and the EU include the Fiat 500L, Ram Promaster City, and Fiat 124 Spider.

While a steep tariff would raise the Renegade’s sticker price, FCA has a number of routes it can take to lessen the impact.

“FCA will be examining a variety of options,” said George Galliers, an Evercore analyst. “These could include a push to upsell consumers into NAFTA-sourced vehicles, including the Compass and Cherokee models; keeping the European-sourced Renegade in the market but focusing on higher-specification versions; and looking to source Renegades for the U.S. market from Brazil, where it is also produced, or potentially localizing it in the U.S.”

[Image: Fiat Chrysler Automobiles]

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35 Comments on “Tariffs Would Slam the Jeep Renegade, Force FCA to Weigh Options...”

  • avatar

    While I agree that FCA will take a hit, keep in mind that GM could well take a bigger hit, as they have several models imported from either the EU or Asia and about their only vehicles unlikely to be impacted will be their trucks and the Camaro. Even the Bolt could see a significant jump in cost, possibly $2500 or more, due to this tariff threat. And other brands noted for having assembly operations in the US are claiming $1500 and more increase on those US-assembled models if this threat becomes fact.

    What this means is that while FCA may be hit on one model (they were already talking dropping the Fiat-branded ones) GM and nearly ever other “import” brand will see increases too. And I don’t believe even Ford is immune, though they may ultimately take the smallest hit.

  • avatar

    This is all really a ploy by China and Russia to dismantle the US as a trading power. Trump is going to claim some small victory for American workers short term before the retaliatory tariffs kick in and things go the way of Harley Davidson. Meanwhile a few energy billionaires can pump and dump our natural resources for a quick high.

    Eventually China will appear to be relatively better as a trading partner and the the rest of the world will simply choose to do business with them on account of their stability (despite many disadvantages.)

    I think it’s pretty fair to say Trump has half the IQ of anyone else at the negotiation table, and he’s getting massively played.

    • 0 avatar

      I think it’s safe to say that you fit into the category of people Trump has made into roadkill over the years. Just ask the Bushes, crooked hillary and BO.

      Keep calling him stupid if that makes you happy, but Trump is well on his way to being the most successful prez since Reagan. Another prez who was always smarter than his opponents.

      • 0 avatar

        “Just ask the Bushes, crooked hillary and BO.”

        Or ask Trump’s investors, lenders, contractors, employees and customers. Oh, and don’t forget about American consumers.

        • 0 avatar

          WINNING ! NOT tired of winning yet ! More to come ! You just can’t admit that Donald Trump is doing a GREAT job. He has done more in 500 days than the last 4 presidents combined in their 28 years. Korean War ? Over. Bring me more things to fix. Did Hussein end any wars after getting a Nobel prize ? No, it was just a participation award for him. 9th place trophy. But he DID transfer $10Trillion to international banksters. And screwed up health insurance worse than it was. What did Hillary ever do ? Oh, Benghazi ! Remember. Bill Clinton ? Oh, yeah ! Midnight basketball ! Oh, and NAFTA. And luckily, he had a republican congress to give him a surplus. But I DO give him credit for that. He was more centrist (politically) than anyone in his party today, even if he is a sex fiend. Remember, he was a NEW DEMOCRAT. Bush43 ? He gave us the Patriot Act, which took away Constitutional rights and increased government spying on citizens. And his Dad ? Well, he invaded Panama so that Noriega couldn’t rat him out for some of his many crimes. He also gave Billions to his bosses the banksters in the Savings and Loan bailout.
          Trump will erase their legacies and save our country. God bless America !

          • 0 avatar

            “scarey”, I don’t think you’re American. I think you’re trolling from another country. Why? Setting aside the characteristic hyperbole, putting spaces before exclamation points and question marks is incorrect. Normally I would chalk that up to declining grammar online, but (a) your posts don’t have other significant errors and (b) international software such as French versions of OSes (France French, not Canadian French) automatically put the space in front of those marks. Something smells funny about your posts. I think those spaces could be your “tell”.

      • 0 avatar

        LOL Nope, try again. He’s a total impotent failure who fell up into the presidency and is getting played by Xi Jinping.

        • 0 avatar

          Nebraska. I know that “Flyover Country” is foreign to you lefties, but I am squarely in the <3 land of America where we cling bitterly to our Bibles and guns. /// Not putting spaces before !!!s ? Is that all you got ?

          And bj-joke— you are too much TV (CNN) ! Failure ? LOL ! Is appointing 2 Supreme Court justices “Failure” ? I don’t THINK so.

          • 0 avatar

            Not convinced. You’re doubling down trying to get others to pile on with the “lefties” and “flyover country” comments.

            So, why do you put spaces in front of exclamation points and question marks, but not in front of periods? (That’s what a French keyboard automatically does.)

            I live in Ohio, which some people think of as flyover country. It’s hard to tell who anyone is online these days.

          • 0 avatar

            also, who the heck uses the word “hidebound” other than thesaurus-using non-native speakers?

          • 0 avatar

            “His point remains valid but he could cover it with a hat.” Your phrasing is super weird. Is this a translation of a saying?


          • 0 avatar

            LOL you’re bad at this. At least you could’ve used “The Google” (or Yandex) to figure out nobody from Nebraska calls Dubya “Bush43”

          • 0 avatar

            I doubt you drive a chevrolet. You probably don’t even have a car.

      • 0 avatar

        Ummm… No. North Korea has already proven that they played him like the sucker he is.

    • 0 avatar

      For Real China, the Country that STEALS the most Intellectual Property, Has 3 Taxes, Count them “3”, they are an IMPORT TAX OF 21-30%, Value Added Tax and a LUXURY TAX on top.

      Do you want to talk about reliable trading partners, can we talk about Mexico’s and Brazils 100% import tax on motortcycles over 1000cc’s, Mexico’s import Tax on Luxury Cars and Trucks ( why do you think AUDI, BMW, Cdillac, Infinity AND MB build there cars in Mexico), Canada’s 300% on all American Dairy, Poultry, Wine, Beer and Spirits, Japan’s non Tax Barriers are Famous!, ever hear of a Japanese Inspection?.

      Sir, you need to look at things the way they are, ever since President H.W. Bush in 1989 to President Obama, we gave been getting HOSED, from NAFTA to the Attempted Trans-Pacific Partnership and Free Trade Of The Americas.

      All these so called agreements and partnerships have been geared and designed to benefit Super Transnational Corporations, American, Chinese, European, Indian, Korean and Japanese by allowing them to move, outsource and transfer goods and products from nation to nation with out any hindrance of national Sovereignty, Hell why do you THINK these same Corporations give money and support to Politicians that SUPPORT OPEN BORDERS,the movement of Cheap Under Educated Labor is also part of there plan.

      Look at the mass movement of 1,000,000 Arabs into Germany ( Cheap Labor to Replace Eastern Europeans ) mass migration from central America and Mexico into the USA ( Did You hear, that the Mexican President Said It Was A HUMAN RIGHTS Violation To Prevent The Entry Of Immigrants Into The USA ),as we recall H.W. Bush so famouly saying, NAFTA was just the first part Of The New World Order, jesus at times I wonder how things would be soo different if Ross Perot, had won the Presidency in 1992.

      • 0 avatar
        Big Al from Oz

        The US taxes Brazilian ethanol 56%. I think Brazil is losing more than the US here. The US corn farmers are powerful.

        Its good to constantly berate others, but look at home first.

        The US is a high cost producer. Period. Uncompetitive.

        • 0 avatar

          “The U.S. taxes Brazilian ethanol 56%” Yeah, but Brazil makes it back on Panama hats.

          • 0 avatar

            PANAMA HATS ! Priceless !
            And I am living RENT-FREE in Barksdale”s head. LOL ! ^^^ his posts
            about “hidebound”, my super-wierd phrasing, and spaces in front of !!!s. Too funny !
            *TYPING ON MY FRENCH KEYBOARD* -actually it’s an Apple keyboard missing 3 keys…but I DO have an expensive French car- a Chevrolet…I crack myself up sometimes…

        • 0 avatar
          Daniel J

          Brazil is one of the few countries we don’t have a trade deficit.

          And last I had read, its not 56 percent, rather, 56 cents per gallon. That tariff however expired at the end of 2011 or 2012.

          The EU has either a 38 cents per gallon on undenatured ethanol or 72 cent per gallon on denatured ethanol tariff .

    • 0 avatar

      “I think it’s pretty fair to say Trump has half the IQ of anyone else at the negotiation table, and he’s getting massively played.”

      Yeah, what does a self-made multi-billionaire international businessman who defies the odds to become President of the U.S.A. know about anything?

      He’s no bkojote, that’s for sure.

      • 0 avatar

        Well considering one of us has a federal investigation about money laundering, treason, and collusion while the other one of us is an actual billionaire I’d put my money on myself.

        • 0 avatar
          Arthur Dailey

          Although I disagree with some of what John posted he is correct in that most trade agreements, and tax laws have been implemented to benefit multinational corporations.

          However Marx predicated that over 150 years ago. And I believe that he is the ‘ultimate lefty’.

          Trump’s ‘accomplishments’ to date have been rather limited. A tax bill, the removal of a number of environmental controls/legislation, and the E.O regarding immigration that was so badly written that it was overturned multiple times before they finally got it right. His major triumphs will be the result of his Supreme Court appointments, who may be with us for a generation.

          As for North Korea, nothing accomplished there except giving legitimacy to the Kim Regime (which every other democratic nation denied it) and getting a Kim to sing a highly innocuous statement akin to ‘the cheque is in the mail’.

          Trump’s international accomplishment to date has been to alienate America’s traditional allies, something that the Soviet Union had been trying unsuccessfully to do since 1945.

          As for Trump’s alleged business acumen. If he was as rich as he claimed he would have released his tax returns. He has left behind a trail of failed businesses and unpaid Americans. And he could only obtain funding from ‘foreign’ sources as American lenders would not do business with him. As others have said, ‘Trump exemplifies business success and luxury for those who have no real understanding of those concepts’.

          I will however also agree that his Democratic opponents were totally inept and that HRC should never have been their candidate.

        • 0 avatar

          How are you dealing with those investigations, bj-joke ?
          I think that you are off of your meds. Sayonara, you sirry Amelicans (A shout-out to barksdale in Ohio, USA !)

      • 0 avatar

        Just as big a MIRACLE as a lanky, homely rail-splitter, Abraham Lincoln, the first Republican president, becoming the leader of our nation.

  • avatar

    Maybe the threat of tariffs will force FCA into putting the money it earns on RAM trucks back into RAM and Chrysler and stop wasting it on Alfa and FIAT – two crap brands that will never succeed in the US.

    The AutoExtremist guy has been saying that for years.

  • avatar

    What’s the over/under on how long it takes for the usual finger-pointing, schoolyard nonsense and crappiness begins?

    • 0 avatar

      No over/under – immediately is the best answer. I’m glad I’ve got old Buck Turgidson as my avatar. It’s getting harder to tell parody/sarcasm/farce from sincerity around here.

  • avatar

    H. Ross Perot was playing chess while everyone else was playing Barrel Of Monkeys.

  • avatar

    Oh my that would only leave seven other transverse front wheel drive fake trucks to sell. The horror.

    “”George Galliers, an Evercore analyst. “These could include a push to upsell consumers into NAFTA-sourced vehicles, including the Compass and Cherokee models””

    Sure George with all of that not money everyone has they’ll be happy to spend even more for something they don’t want.

  • avatar

    As a polite Canadian observer of US politics (all Canadians are forced to pay attention to what happens in the US whether we want to or not), I would suggest that with 81 million vehicle sales predicted world-wide in 2018 and maybe 17 million of them in the US (21% of that total), insisting that every car in the world be manufactured in the US or face large tariffs is pretty ridiculous – and terrible for the American consumer.

    You simply aren’t big enough or important enough economically anymore to dictate what the whole world does. The best you can do – and it’s likely to happen – is start a trade war that creates a deep, world-wide recession and drives your allies into the hands of your enemies, particularly China.

    As an outside observer, it seems impossible to me that Donald Trump isn’t a Russian puppet of only because nearly every decision he makes creates an outcome so obviously beneficial to them. The rest of the free world hasn’t always loved and appreciated American leadership, now we are all convinced it’s over, perhaps for good. That’s disappointing and dangerous, as many of the powers rising to take its place are autocratic.

  • avatar
    R Henry

    Indeed, any sort of change in the business/economic climate illicits howls of protest. The status quo has great inertia.

    Thing is, business conditions are always in a state of change. Well managed firms adjust their operations to take advantage of new opportunities and to reduce risk from changing economic conditions.

    If the stated objective of a tariff is increased domestic employment and production, of course foreign produced product is likely to become more expensive…that is how tariffs work.

  • avatar

    Can we seriously get back on topic? None of us are in office anyways to make any decisions so we have to deal with what we get. We can’t control President Trump and whether or not anyone likes him as a president, he’s still our president that can do whatever he wants — whether we like it or not. What’s ranting on about his decisions going to do? Instead let’s look into what the reality might be.

    Honestly though, reading these comments makes me wonder if anyone here is a mature adult. It’s downright ridiculous and embarrassing, and also humiliating. Yeah, you may rebuttal my post about how ridiculous this rant even might be, but come on though, I read these comments with the notion of someone giving insight as to how the prices would effect this Jeep model — like what the original post is all about — but instead I find trivial commentary and verbal junk non-relating to what the original author posted. Have some sense. I’m surprised some of you passed English in school.

    What really is a considerable question is whether or not buying a vehicle like this one, the Jeep Renegade, before his new tarrifs, would effect the price of repairs after his tarrifs got passed. So I’m looking into getting a Jeep — used, pre-owned or even certified at a Jeep dealership — before his tarrifs get passed. Now, if I buy a model like the Renegade (for example), and the tarrifs did get passed, would I then have to pay more for repairs since the parts are from out of the U.S. (to my understanding, though I could be wrong) — is my curiosity?

    And also, when is the best time to get a vehicle and should it be from either a FORD, GMC, or FCA since they are American brands?

    If anyone who can answer logically without cynicism and hold a mature conversation, I would appreciate it. And please, just stick to the questions without any immaturity.

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