The Jeep brand has
the most promising role in the five-year plan with Fiat
acknowledging the strength of this brand compared to the
faded star of its sisters divisions, Chrysler and Dodge. It
will be the only brand to retain a full global footprint and
its overseas development on the next few years will be a key
fundamental in the Chrysler Group's volume recovery hopes.
Acknowledging that
Jeep has been left behind by a changing market, "it's clear
that consumer demand has changed and developed," Jeep unit
boss Michael Manley said. "There's a traditional core of the
segment that is still looking for class-leading capability,
four-wheel-drive leadership and versatility. And here Jeep
resonates very, very strongly. But there's a large and
growing part of the segment that is looking for a more
fuel-efficient package, a car-like ride and handling with
great on-road stability, particularly during bad weather,
and this is where Jeep has a great opportunity."
From its origins as
a 1940s military vehicle into the "genuine" off roader brand
it is today, statistics were trotted out to back up the
point of Jeep's retained value: 6 million Jeep vehicles on
the road today, over 250,000 Jeep fans on Facebook, 60,000
user generated Jeep YouTube videos and over 250,000 users
downloaded photos from Flickr, while more than 2,000 Owner
Clubs promote the brand on every continent.
The main objectives
for Fiat in terms of Jeep over the five year plan will be:
"clear brand positioning, consistently communicating of the
essence of the brand, focused product development, existing
product modifications, new platforms and powertrains, entry
into new segments, attention to branded detail on all
customer touchpoints and working with dealers to complete
the full brand experience."
Jeep faces big
challenges after years of neglect, incorrect positioning and
underinvestment to claw
back its lost market share. "There has been an explosion of the competitor models in the
SUV segment from 54 in 2000 to 111 in 2009, and with the evolution of the CUV
segment further blurring the landscape," read the presentation notes. "Consumer
demand in the segment meanwhile has shifted away from
capability, toward on-road dynamics and purchase intentions
have been maintained by aggressive retail activity while
investment in brand development has been minimal." In the
1990s Jeep was the #1 brand in the world, now it is #6
globally and #3 in NAFTA. The objective now for the new
Chrysler Group management is to reverse the NAFTA decline
and accelerate global sales. From 604,000 sales worldwide a
year in 2005 and 609,000 the following year, Jeep sales have
slumped to 407,000 annually last year and the target now is
to raise this to above 800,000 per year by the end of the
product plan in 2014.
To achieve these
ambitious targets next year there will be a blitz on the
creaking Jeep range with unpopular models being canned,
while the Patriot, Compass and Wrangler will all get major
makeovers along with a milder refresh for the Liberty. The
Commander will be phased out in North America at the end of
next year but will continue in production for selected
overseas markets. Shoring up the range in the short term
will be the arrival of the all-new Grand Cherokee 2011 next
year which was developed by Daimler and rides on
Mercedes-Benz' ML architecture. 2011 will see Jeep
celebrating its seventieth anniversary and all the models
will get special editions while a second refresh will be
given to the Wrangler to let it lead out the marketing push
that will go hand-in-hand with the celebrations.
2013 will be a key
year for the Jeep division as it will herald the arrival of
a new small-size B-segment contender based on Fiat developed
architecture, while the Patriot and Compass models will both
be replaced by a single model, again using a new platform
developed by Fiat, which will also provide new underpinnings
for another replacement model, this time the Liberty.