FCA’s global ambitions tested with Italian made Jeep image

We could see it as a paradox for the globalization, the newly formed Fiat Chrysler Automobiles wants to build in Italy, the home of smallish cars a model for a very US brand.

The Jeep Renegade just had its world premiere during the Geneva Motor Show and acts as the first sibling of the Fiat SpA – Chrysler Group LLC “marriage”, with a company that would have its domicile in the Netherlands, pays taxes in London and is listed on the New York stock exchange – talk about long arms…

“The investment that Fiat has already made, now gives the opportunity to Jeep to expand its manufacturing footprint at lightning speed,” said Mike Manley, head of the Jeep brand.

The alliance aims to allow both automakers to cut costs and grow profits by sharing everything, from technology, cash to dealer networks. For Jeep, the Renegade small SUV is among the steps that should help the brand reach its ambitious goal for 2014 – 1 million sold units.

“Even though sales in Europe will grow, it won’t be easy to make huge volumes with Jeeps in the region because the market is very different from the U.S. one,” said Andrea Giuricin, head of TRA Consulting. “Asia is still a big blind spot for Fiat, and they need to rapidly grow their market share there to be able to maximize on the potential of the Jeep brand.”

Analysts and industry experts say that Jeep is actually FCA’s only global brand at the moment, but are still weary if the goal is feasible – it would need Jeep to jump sales by 37 % compared to 2013.

Via Reuters