Fiat Chrysler Automobiles seems to have hit the nick of time for its production start of the small Jeep Renegade crossover. The FCA’ subcompact is scheduled to go on sale in March in the United States.
There are numerous factors converging on the Jeep Renegade’s unfolding success story – for example the US has the cheapest gas prices in years, supporting the customer drive to exchange the old passenger car for a new SUV. Additionally, the Renegade has overseas production – in Italy – which enables the company to pay workers in euros and sell the model in America for just as strong dollars. Further on, if the model becomes a sales hit, it will assist in the brand’s drive to almost double 2014 sales (soaring from one million units per year to 1.8 million) and boosting earnings fivefold. The model pans out on the usual Jeep rugged and odd image, vying as a competitive rival to subcompact crossover hits such as the Kia Soul and Nissan Juke.
Fiat Chrysler Automobiles reported yesterday that revenue climbed 15 percent in 2014 in North America – but recall costs have eroded the earnings margins. Additionally, Latin America continued to hurt last year’s total profits and Europe continued to be rather weak. But the latter shows interesting prospects – the fourth quarter was the first when FCA had profit in the region since 2007 and the euro’s weakness will buoy short-term financial status – the company profits when converting dollars into euros of the US-built vehicles for reporting purposes.