Nearly Dead in the U.S., Fiat Turns to Brazil for Rekindled Love

Fiat Chrysler Automobiles is going all-in in Brazil, where the struggling Fiat brand was once the country’s top choice for new vehicles. The automaker has announced a $4 billion plan to boost market share in the only non-U.S. region that made the company any money last quarter.

Leading the way are two new Fiat SUVs, joined by a host of Jeep and Ram offerings.

FCA CEO Mike Manley didn’t have much to say about those future models during a Brazil plant tour Wednesday, though he did talk up the size of the product surge, Bloomberg reports.

By the time the cash dump dries up in 2024, Brazilian buyers can expect 15 new, refreshed, or “special series” models, while the new Ram and Jeep offerings will number 10.

“We want to make sure the Fiat brand remains very strong in Brazil’s marketplace,” Manley said. “The Fiat brand is a vital part of our business.”

Last quarter, FCA’s Latin America region turned in $117 million before interest and taxes, with a profit margin of 5.4 percent. Manley hopes to take that figure into the double-digits by 2022. Fiat came to Brazil in 1976 and remained a top seller until 2015, after which Volkswagen and General Motors took the lead. Jeep volume has grown rapidly, hitting 4.8 percent of the country’s market share last year, and Manley wants to see that continue.

Part of the $4 billion will go towards boosting production at the company’s Pernambuco plant, which opened in 2015, from 250,000 vehicles per year to 350,00. That plant builds the Jeep Renegade and Compass.

A new plant will also begin construction to supply the market with small, turbocharged engines, Manley added. For 2019, the company introduced a new 1.3-liter turbo four to serve as the top powerplant in the global Renegade line. It makes 177 horsepower and 200 lb-ft of torque. There’s also a 1.0-liter three-cylinder that makes 120 hp and 140 lb-ft.

There’s no word on whether the two new Fiat SUVs bound for Brazil have any chance of appearing on American shores. The company barely mentioned the brand’s U.S. presence during last year’s five-year plan unveiling, and sales of the Renegade-derived 500X crossover have not met anyone’s expectations. Last year, Fiat’s market share in the U.S. fell to 0.09 percent, with sales over the first four months of 2019 falling 42 percent.

[Image: Murilee Martin/TTAC]