collected by :John Max
In what could be a huge disruption for the Jeep brand in India and across the world, Fiat Chrysler Automobiles Chief Executive Sergio Marchionne recently admitted that the group was considering selling off the Jeep and Ram brands. In India, Jeep has invested ₹ 1800 Crore at the Fiat factory in Ranjangaon in order to accommodate production of the Jeep Compass. When asked if FCA would consider selling Jeep and Ram by a representative of the Press, Marchionne answered in one word ‘Yes’. If sold, FCA would be only left with Dodge and Chrysler in the United States. Coincidentally, neither Dodge nor Chrysler have a SUV in their ranks, a segment that accounts for more than 40% of the American car market.
Fiat Chrysler Boss Openly Considers Spinning Off Jeep
Both banks have grown more reluctant to make new subprime loans using money from their own balance sheets. If Jeep and Ram split into their own thing, I don’t think it’s a stretch to imagine Chrysler and Dodge getting killed. AdvertisementSponsoredStill, it’s sorry to hear that Jeep has retained its profitable mercenary-like status, always a jewel in a rusty crown. Chrysler profits are up 34 percent this quarter compared to how they looked a year ago. 2nd Gear: Oddly, FCA profits are up but not because of JeepSince nothing makes sense in the car world, Jeep is not Chrysler’s cash cow at the moment.
Yet, that one-word answer has raised lots of questions both in and around Fiat Chrysler, the most fundamental being: Was he serious? How much might the Jeep and Ram brands be worth? There are the Italian brands Fiat, Alfa Romeo and Maserati, but except for Fiat in Europe and a few other markets, those are niche brands and ones just going through major makeovers. It was slow to adapt to other trends, notably the car-based crossover, but since the old Chrysler Corp. emerged from bankruptcy in 2010 ad merged with Fiat, Jeep has been making up for lost time. But take those brands away and “there’d be nothing left,” said Joe Phillippi, of AutoTrends Consulting, certainly not with the automaker’s remaining, American brands Dodge and Chrysler.
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