DaimlerChrysler in $2bn Jeep revamp
12-19-2003 | 12:37 PM
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DaimlerChrysler in $2bn Jeep revamp
DaimlerChrysler in $2bn Jeep revamp
By Jeremy Grant in Chicago
Published: December 19 2003 0:45 | Last Updated: December 19 2003 0:45
DaimlerChrysler plans to invest about $2bn in revamping the Jeep brand of vehicles made by its Chrysler unit in the US in a sign that the carmaker is addressing years of decline in market share at one of the carmaker's best-known brands.
The money will be used mostly to launch a range of new products and expanding a manufacturing plant in Toledo, Ohio, where many Jeep products are made.
The first mass-market Jeep vehicles produced in the 1960s have long been viewed as the precursors to the sport utility vehicles (SUVs) that now dominate roads in the US.
But vehicles like the Jeep Grand Cherokee, an SUV in the Jeep line-up, have seen their market share slip with the entry of most carmakers into SUVs.
The launch last year by General Motors of its Hummer SUV, inspired by the US army's "Humvee" vehicle, has also challenged consumer perceptions of Jeep's dominance of the market for rugged, off-road SUVs.
"The success of Hummer means the Jeep people have to be kicking themselves because the Hummer should have been a Chrysler Jeep product. They [Chrysler] missed an enormous opportunity so the only alternative they have is to redevelop all the products within the Jeep line," said Art Spinella, president of Oregon-based consulting group CNW Marketing.
He said the Jeep Grand Cherokee's share of the market for mid-sized SUVs had fallen by 20 per cent in the past three years. The Jeep Wrangler lost 9 per cent of market share in the same period.
Chrysler's determination to revive the fortunes of its Jeep brands was underscored last month when it unveiled plans for a new, larger version of the Jeep Wrangler and a new Grand Cherokee, to be sold next year.
It also displayed design sketches for the Jeep Treo, a two-seater runabout powered by fuel cell technology, as well as for a new off-road concept vehicle called the Rescue.
Plans to expand the plant in Ohio are subject to ratification of a new labour agreement between Chrysler and the local branch of the United Auto Workers union, the union that covers the US automotive industry.
A company source said: "It's not set in stone by any means, although the labour agreement supports this if we do get the various business cases pulled together."
DaimlerChrysler declined to comment.
By Jeremy Grant in Chicago
Published: December 19 2003 0:45 | Last Updated: December 19 2003 0:45
DaimlerChrysler plans to invest about $2bn in revamping the Jeep brand of vehicles made by its Chrysler unit in the US in a sign that the carmaker is addressing years of decline in market share at one of the carmaker's best-known brands.
The money will be used mostly to launch a range of new products and expanding a manufacturing plant in Toledo, Ohio, where many Jeep products are made.
The first mass-market Jeep vehicles produced in the 1960s have long been viewed as the precursors to the sport utility vehicles (SUVs) that now dominate roads in the US.
But vehicles like the Jeep Grand Cherokee, an SUV in the Jeep line-up, have seen their market share slip with the entry of most carmakers into SUVs.
The launch last year by General Motors of its Hummer SUV, inspired by the US army's "Humvee" vehicle, has also challenged consumer perceptions of Jeep's dominance of the market for rugged, off-road SUVs.
"The success of Hummer means the Jeep people have to be kicking themselves because the Hummer should have been a Chrysler Jeep product. They [Chrysler] missed an enormous opportunity so the only alternative they have is to redevelop all the products within the Jeep line," said Art Spinella, president of Oregon-based consulting group CNW Marketing.
He said the Jeep Grand Cherokee's share of the market for mid-sized SUVs had fallen by 20 per cent in the past three years. The Jeep Wrangler lost 9 per cent of market share in the same period.
Chrysler's determination to revive the fortunes of its Jeep brands was underscored last month when it unveiled plans for a new, larger version of the Jeep Wrangler and a new Grand Cherokee, to be sold next year.
It also displayed design sketches for the Jeep Treo, a two-seater runabout powered by fuel cell technology, as well as for a new off-road concept vehicle called the Rescue.
Plans to expand the plant in Ohio are subject to ratification of a new labour agreement between Chrysler and the local branch of the United Auto Workers union, the union that covers the US automotive industry.
A company source said: "It's not set in stone by any means, although the labour agreement supports this if we do get the various business cases pulled together."
DaimlerChrysler declined to comment.
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