Show Daily - Sema

82 SEMA Show Daily
Global Jeep Appeal in Two Big Emerging
Markets, continued from page 81
Chrysler’s Jeep brand has seen a resurgence in recent years, winning awards that range
from the Grand Cherokee’s 2011 Urban Truck of the Year to the Wrangler’s 2012 Four
Wheeler of the Year.
Local production of the Compass
small SUV and Grand Cherokee is
being discussed, according to Chrysler
sources, but no decisions have been
reached. One problem, the sources
said, is that Fiat also wants to produce
Fiat models in the Changsha plant.
And another problem is that China’s
central government recently made it
more difficult for new foreign automakers
to get permission to produce
in China. Mike Manley, CEO of the
Jeep brand, has said that Jeep may
start local production in China in
2013 or 2014.
Chrysler aggressively markets the
Jeep brand in China. The campaign
includes hosting an “Ultimate Journey”
road trip to Burma in 2011
and “Camp Jeep” events in rugged
areas of China. Jeep dealers in
China also organized the on- and
off-line Jeep Experience Center,
where Jeep fans can meet and organize
events. Hundreds of Jeep owners
participate annually in those events,
Chrysler said.
The Jeep brand probably has the
highest customization rate among
SUVs in China, according to Yale
Zhang, a Grand Cherokee owner and
president of the Shanghai-based consultancy
Automotive Foresight. Popular
customization includes lighting,
bumpers, roof racks and radios, said
Zhang, who noted that typical Jeep
owners in China are male and dream
of off-road adventures more than purchasers
of other brands of SUVs.
Russia
Prestige is a big selling point for the
Jeep brand in Russia, as is its ability to
navigate rough and snowy roads, said
Tatiana Hristova, a Moscow-based
senior analyst at IHS Automotive.
“Jeep is one of the image brands
in Russia,” she said. “Jeep stands
for safe vehicles that are appropriate
for Russian roads and have an attractive
design.”
The Grand Cherokee, Cherokee,
Wrangler and Compass are models
currently sold in Russia. All
are imports.
In late February of this year, Fiat
signed a letter of intent with Russia’s
Sberbank to provide financing for and
take a minority equity stake in a joint
venture to produce Jeeps in Russia.
Initial capacity will be 120,000 units,
according to a Fiat press release. There
was no news on what models will
be produced.
Binding agreements will be finalized
in the first half of 2012, said Fiat.
That won’t be a moment too soon.
According to Hristova, competition
in the SUV segment is heating up
in Russia.
A typical Russian Jeep owner is a
successful male businessman between
the ages of 30–50, said Hristova.
But he is probably not dreaming of
off-road adventures so much as of
finding a parking spot in Moscow.
“I have a Jeep; I park where I want,”
is a typical joke among Jeep drivers,
she said. The Jeep brand is also popular
among Russia’s wealthy “gilded
youth” because of its solid look,
she added.
Jeep owners in Russia tend to buy
the most premium accessory package,
according to Hristova. A journalist at
Maxi Tuning Russia told SEMA Show
Daily that wheels are often customized,
and Hristova said that fourwheel
drive is especially important for
Jeep in Russia.
“Without it, only the image will be
the key selling point,” she said.