NEW YORK, NY, UNITED STATES – 2019/04/17: Jeep Gladiator Rubicon seen at the New York International … [+]
Jeeps might be fairly ubiquitous on American roads, but the brand’s popularity doesn’t necessarily translate around the world. Fiat Chrysler wants to change that in 2020, starting with Russia.
According to a report by Wards Auto, Jeep sales in Russia are fledgling at best, but are on an upswing coming out of 2019. Jeep sold just 8,221 units in 2014, a number that dropped 75% to just over 2,000 units in 2015, then a further 38.8% to 1,269 units in 2016. With a trend like that, it’d be tough for FCA to justify keeping a foothold in the Russian market let alone pour even more time and money into its minuscule market share.
While things started to look up in 2018, with sales climbing 39% and another 17% for the majority of 2019 to 1,653 units, Jeep is nowhere near where it’d like to be in the world’s largest country. Despite the less than stellar sales numbers, FCA sees potential in Russia with updated model lineups helping the recent uptick in performance along with competitors Ford and General Motors ceasing all manufacturing operations in the country all together. This year, Jeep will introduce an updated Wrangler, Compass and Gladiator to try and capitalize on the potential winning situation.
Russia’s recovering economy also seems to be spurring on FCA’s confidence, but the manufacturer’s biggest hurdle could be the Russian government itself. Wards Auto also reports a new fee imposed by the government will likely raise the prices of new cars. And considering the Renegade, one of Jeep’s most affordable models, sells for the equivalent of $42,000 USD in Russia (nearly twice what it sells for in the States) and the going rate Grand Cherokee SRT in Saint Petersburg is closing in on $100,000, Jeep models are dangerously close to competing in a luxury space.
A healthy economy, updated models and lack of direct competition form two major American manufacturers could be enough to help Jeep recover to the heights it saw the Russian market in 2014. If FCA is relies too heavily on the allure of owning an American made status symbol and the government interferes with politics, Jeep will have one rocky uphill battle it might not be able to climb.
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