agent Entrepreneur logo
MenuMENU
SearchSEARCH

Sergio’s Challenge: Build Jeep Into FCA’s Top Global Brand By 2018

Auto analysts are skeptical that Sergio Marchionne, the hyperbolic chief executive of Fiat Chrysler Automobiles, can meet his most ambitious goal: to nearly double Jeep’s global sales over the next four years, reported Reuters. Marchionne reiterated his aggressive target for boosting Jeep’s annual volume to 1.9 million, while pacing the floor of the New York ... Read More »

October 15, 2014
3 min to read


Auto analysts are skeptical that Sergio Marchionne, the hyperbolic chief executive of Fiat Chrysler Automobiles, can meet his most ambitious goal: to nearly double Jeep’s global sales over the next four years, reported Reuters.

Marchionne reiterated his aggressive target for boosting Jeep’s annual volume to 1.9 million, while pacing the floor of the New York Stock Exchange on Monday during the newly merged company’s first day of trading.

Ad Loading...

That’s nearly 700,000 vehicles more than the average of analysts surveyed Tuesday by Reuters, who believe FCA is more likely to boost Jeep volume to just over 1.2 million by 2018, from a projected 1 million this year.

“I have all the best intentions” of hitting the 1.9 million mark, Marchionne said in an interview Monday with Bloomberg TV. “We may even blow through it.”

Counters longtime auto analyst and consultant Maryann Keller: “Realistically, he’s not going to make the numbers.”

Even if Jeep realizes only the more modest growth projected by analysts, it still is likely to emerge as the company’s largest brand, accounting for 25 percent or more of total volume. Marchionne is expecting FCA sales to reach 7 million by 2018; analysts are expecting 5.1 million.

The success of FCA’s Jeep growth strategy hinges not on a huge expansion of the brand’s product portfolio, but rather on an expansion of its manufacturing and sales presence outside North America, Jeep’s traditional stronghold since its post-World War II metamorphosis from military to civilian use.

Ad Loading...

FCA currently builds five Jeep models in four U.S. plants and is just adding a sixth model, the Jeep Renegade subcompact, in Italy. The Renegade is slated to go on sale in North America early next year.

Four years from now, the plan is to build six models in six countries. That includes two plants in China that are scheduled to open in 2015 and 2016, with a combined annual production capacity of 500,000, or roughly one-quarter of Jeep’s projected global volume.

Future Jeep models include only one other addition to the portfolio: A luxurious seven-passenger flagship in late 2018 that will revive the Grand Wagoneer name.

The Compass and Patriot compacts will be replaced by a single model in 2016, with redesigns of the Grand Cherokee and the Wrangler slated for 2017 and 2018, respectively.

Barclays Capital expects Jeep sales to reach 1.4 million by 2018. Whether Marchionne can hit the higher target depends “less on flooding the U.S. market with more Jeeps and more with taking an iconic brand global,” Barclays analyst Brian Johnson said in an interview on Tuesday.

Ad Loading...

While FCA expects to increase Jeep sales in Europe and Latin America, the real prize remains China, where the company continues to lag behind most of the major multinational automakers. Marchionne wants to leverage projected double-digit growth in SUV demand among Chinese consumers.

The brand’s re-entry into China “will provide Fiat with a turbo boost” to growth in that market, said Richard Hilgert, an analyst at research firm Morningstar.

Marchionne agrees that “our big future” is in China.

But FCA and Jeep “aren’t the only ones trying to grow” outside North America, said Jeff Schuster, senior vice president of forecasting at LMC Automotive, which expects global Jeep volume to reach 1.2 million in 2018.

Considering the swarm of new competitors coming, especially in the compact SUV segment, Schuster described Marchionne’s target for Jeep as “unrealistic” and “a very, very difficult road.”

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...