A Jeep Renegade is pictured at the Geneva Auto Show in Switzerland on March 2. The U.S. automaker recently revealed plans to expand to Asian and Latin American markets to meet its growth targets. (Photo : Reuters)
Jeep is set to expand its network of dealerships across China from 160 to nearly 220 by the end of 2015, the brand’s senior official said to the press on Tuesday.
By November, the U.S. automaker also intends to start local production of the Cherokee SUV followed by the smaller Renegade crossover, Jeep CEO Mike Manley said in an interview at the Geneva Auto Show.
The expansion is part of the plan by Fiat Chrysler Automobiles, of which Jeep is a subsidiary, to establish markets outside North America and meet its sales growth target of 1.9 million cars in 2018 following a record growth of over 1 million the previous year.
"Getting the launch of China right is very, very important as it is one of the major cornerstones to get to the 1.9 million target," said Manley.
Jeep's global sales have skyrocketed since 2009, mainly due to well-received products and a resurging demand for SUVs. The success of the brand, along with its Italian sports car counterpart Alfa Romeo, has been pivotal to Fiat Chrysler CEO Sergio Marchionne's strategy to boost group sales to 7 million cars in 2018 from about 4.6 million in 2014.
"The brand has had aspirations to grow internationally and sees doing so as an important element for the entire FCA group's success," said Jeff Schuster, an analyst with LMC Automotive.
LMC foresees Jeep to have more than 30 percent of its production to be outside of North America by 2018, compared to just around 2 percent in the past year.
"We are on track in China, everything we monitored in terms of the Cherokee pre-production looks good," said Manley, who also serves as COO for Fiat Chrysler in Asia, adding that the company also plans to start production in Brazil next month and enter the Indian market by the end of the year.
