Jeep targets premium luxury sector

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Jeep is going to play an increasingly significant role within Fiat Group Auto’s multi brand fleet strategy with the new Italian-built Renegade small SUV described as a game-changer by Enrico Atanasio, head of fleet for Europe, Middle East and Africa.

Speaking on the eve of the fleet launch of Renegade, designed to compete particularly with Skoda’s Yeti and MINI’s Countryman Atanasio, formerly head of Fiat India, said: ‘Jeep in general, and Renegade in particular, are moving from low-volume niche status to premium luxury and with that change can take on a role within the international fleet sector. That is why 170 leading European fleet executives and managers are with us in Italy.’

With the Renegade, sharing its basic structural architecture with Fiat counterparts and built at the Melfi factory, being introduced across mainland Europe by the end of this year, Atanasio claims that Jeep will play a complementary, not standalone role, within FGA’s brand portfolio.

He explained: ‘We can build on the new Cherokee’s success, involving queues lasting several months for businesses in certain markets to have test drives. That is a new and welcome problem for Jeep. Sourcing Renegade from Italy gives us supply flexibility in terms of demand and logistics. For the first time Jeep has the potential to provide real fleet volume within the wider FGA family.’

FGA fleet executives, said Atanasio, faced the challenge of gaining vital on-the-road visibility and recognition across Europe, initially through ‘carefully chosen daily rental exposure’.

That in turn should lead to establishing the two and four-wheel-drive small SUV on corporate selection lists, which he conceded could take between six and 12 months to achieve as business policies and replacement cycles rotate and new contracts open up.

Adequate demonstration fleets would be required, with dealers playing a central role and the quality of test-drives, including conversion to fleet sales, being monitored. This results in rewards or penalties. Potential customer companies will be qualified in terms of their fleet requirements and lengths of test loans, while user choosers and smaller businesses provide a specific target sector.

Although Jeep has highlighted the Renegade’s role as a genuine off-road SUV in an expanding market sector where other brands do not seek, nor have 4×4 heritages, Atanasio admitted: ‘Having the best rough-terrain capability is not that relevant in fleet and I don’t expect many companies or employees to choose 4×4 Renegades to go off-road on the way to and from work. It is about real and perceived safety, high driving position, good visibility and all round security. Within Europe that duty of care element is becoming increasingly part of the choosing and buying processes.’

But he emphasised that public utilities, and organisations requiring access to isolated areas, would also be covered as an expanding Jeep range develops within the joint fleet approach.

Atanasio explained that the Renegade, developed on a trans-Atlantic engineering and styling basis, would stand up to: ‘logical cost benefit analysis and calculation with some models below 120g/km. Even four-wheel drive versions can operate with front-wheel drive only without significant CO2 or fuel consumption penalties, which supports our case in Alpine territories, where people need to do business all year round. But in normal conditions 4×2 remains the most relevant choice.’

Renegade, Cherokee and from the first half of 2016 a new US-built C-sector SUV to replace the Jeep Compass, will fit into the multi-brand business car sales approach. Atanasio said: ‘We can sell a Fiat Ducato van to a medium-sized company alongside the growing choice of Jeeps for staff and management. Plus if they need reward cars then there are Alfa Romeos. It makes sense to do that rather than have people from the individual brands tripping over each other.’

FGA’s international database, he added showed there are few companies who don’t use a variety of cars and vans.

While targeted daily rental deals might kick-start the Renegade programme and gain recognition Atanasio said FGA Capital would underwrite longer-term Jeep contract hire and leasing business.

Jeep’s product range will grow further in 2017 with a seven-seater Grand Wagoner, which could be aimed at established European premium rivals.

Atanasio said producing the Renegade in Italy helped the business case and the joint venture between Fiat and Jeep engineers also involved the American brand benefiting from state-of-the-art diesel engines, markedly improved fit and finish plus factors like a nine-speed automatic transmission.

He added: ‘Jeep until recently has been a limited niche brand with limited product offering and relevance. But with Renegade and Cherokee there is no reason to exclude Jeep from choice policies on a rational basis.’

More specialised Jeep models could also play a role in the FGA approach, which provides cars, including Fiat 500 Abarths, to the Hertz Collection programme where customers want particular luxury or performance models.

Atanasio said the term crossover could apply to the Renegade’s potential fleet appeal, by taking conquest business from conventional C-sector hatchbacks or attracting customers moving up from smaller nominal SUVs like Renault’s Captur, Nissan’s Juke and Peugeot’s 2008.

Jeep, he maintained, shared Land Rover’s brand status as a global seller of capable 4×4 models and had also moved pragmatically, particularly in pursuit of fleet business, towards two-wheel-drive variants.

He said: ‘Jeep is genuinely inter-continental and rare in earning global American automotive brand recognition and status within the business community. It has evolved to be less raw, less utilitarian and more upmarket with the major benefit of our diesel technology. Renegade is a game changer and there is no reason why the larger, compact SUV we are planning, which will be unveiled during CEO Sergio Marchionne’s May 6 corporate plan conference, cannot challenge the Range Rover Evoque.’

It is not known if FGA UK’s fleet slogan for Jeep ‘Business, not as usual’ will be applied across other European or international markets. But Jeep plans to import the new Renegade to northern America, including the larger engined, 2.4-litre, 185hp Tigershark version, which is also being sold in Russia, the Middle East and South Africa.

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