05.11.2009 CHRYSLER GROUP 2010 - 2014 BUSINESS PLAN: JEEP

2011 JEEP GRAND CHEROKEE

Shoring up the range in the short term will be the arrival of the all-new Grand Cherokee next year which was developed by Daimler and rides on Mercedes-Benz' ML architecture.

JEEP PRODUCT PLAN: CHRYSLER GROUP FIVE YEAR PLAN PRESENTATION, NOVEMBER 2009

2010 JEEP LIBERTY
2010 JEEP GRAND COMMANDER

The Jeep Liberty (top) will get a mild refresh next year to see it through to 2013 when an all-new model will replace it, the Commander (bottom) will be phased out of North American markets next year.

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.
 

© 2009 Interfuture Media/Italiaspeed