Tuesday, March 4, 2014

Jeep destined for big things with its new small Renegade


As the first of its kind, the Jeep Renegade, a smaller, tough Italian cousin to the Wrangler, is already been called the “cute brute” and “baby Jeep” of the Chrysler lineup.


The brand’s first subcompact SUV and the first Jeep model to be made in Italy is expected to juice global growth as it delivers a big sales punch to Chrysler’s already prosperous U.S. lineup.


The Renegade, which is to go on sale before the end of the year, will be unveiled Tuesday at the Geneva Motor Show in Switzerland.


“I think it’s fantastic. It’s exactly what the baby Jeep should be,” said Aaron Bragman, Detroit bureau chief of Cars.com, a Web-based car shopping site. “To me, it is something we don’t have yet in this market. It is a really small, trucky looking vehicle.”


With the small crossover, Chrysler is leaping into one of the fastest-growing segments in the world. The strategy shows how Fiat Chrysler CEO Sergio Marchionne is continuing to leverage Jeep’s brand recognition to boost global sales, he hopes, to more than 1 million in the next few years.


Built in Italy but designed in the U.S., the 2015 Renegade will be sold in more than 100 markets around the globe. The company, and analysts interviewed by the Free Press, expect it to be a hit in China, Europe and South America.


The Renegade name should be familiar to enthusiasts because it’s been used to designate special trim levels for the CJ-5 and CJ-7 — predecessors to the Wrangler — and the Liberty. It also was the name of a concept vehicle shown at the 2008 Detroit auto show. The 2015 Renegade will mark the first time the name has been used as its own model name.


Mike Manley, president and CEO of the Jeep brand, expects sales of more than 800,000 worldwide this year, up from a record 731,000 in 2013.


“As this segment develops in the coming years, I think there is a very good chance it will be our top seller,” internationally, Manley said.


Globally, the subcompact SUV segment accounts for 2.7 million in annual sales, Manley said. About 1.1 million of those sales are in Europe with another 1.1 million in Asia and about 250,000 annually in the U.S.

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