By 2022, FCA aims for 1 in 5 SUVs sold to be Jeeps.
Today in Balocco, Italy, FCA boss Sergio Marchionne laid out the company’s plans for aggressive global expansion within the next five years. At the heart of those goals lies Jeep, currently the company’s most profitable brand. Right now, one in 17 utility vehicles sold globally is a Jeep – representing 5.8% of the total market. By 2022, however, the goal is for 1 in 12 SUVs sold to be a Jeep – or 8.3% of the market. Eventually, the ultimate end game is to conquer 20% of the global utility market. To meet those ambitious targets, Jeep will increase its North American production capacity by 500,000 units under the plan.
Finally, Jeep will roll out a subscription service for its vehicles, a business model that’s been gaining steam throughout the industry. With that, potential owners would have the opportunity to enter the Jeep world without resorting to a long-term finance contract or a traditional lease. Jeep also aims to offer use-based insurance, which may be a major consideration for those who take their Jeeps off-road.
Maserati will expand, while Alfa Romeo scales back volume expectations
Back in 2014, FCA planned for Alfa Romeo to reach a global volume of 700,000 units. However, FCA’s newest plan scales the brand’s volume back to just 400,000 units. Alfa Romeo has seen major growth in the U.S. market thanks to the addition of the Giulia sedan and Stelvio crossover, but sales rates haven’t reached the goal set back in 2014. However, the current goal will realize the return of the 8C sports coupe to the Alfa Romeo stable, according to Alfa Romeo and Maserati head Tim Kuniskis. The diminutive, aging MiTo hatchback, which isn’t sold in the United States, will be eliminated, but a larger crossover will be added by 2022. The iconic GTV will return, and the brand will introduce stretched-wheelbase versions of most of its models. The Giulia and Stelvio will remain, but they will be refreshed within the next few years.
Don’t think Maserati will move away from crossovers, either. The brand will launch a new mid-size plug-in hybrid crossover by 2022. Kuniskis stated this new crossover will have a best-in-class power-to-weight ratio and overall performance against its competitors. New versions of the Levante crossover and Quattroporte sedan will come in time, as well. Overall, Maserati will offer eight hybrids and four fully-electric models by 2022. The brand will also cut diesels from its lineup in favor of hybrid and electric powertrains.
What about Chrysler, Fiat and Dodge?
Although they were not a focus of today’s meeting, Chrysler, Fiat and Dodge will continue operations under FCA’s current five-year plan. Rumors were swirling that Chrysler would get the ax today, but FCA spokespeople and Marchionne himself debunked those rumors. According to a report by Detroit Free Press, FCA will invest 25 percent of its resources toward the three brands, while the lion’s share will go toward Jeep, Ram, Alfa Romeo and Maserati.
Marchionne nor other FCA executives made specific product presentations for any of these three brands, so their long-term outlook is still unclear. However, all three brands will stick around for the immediate future.
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