Jeep Continues to Go Global with Production Plant Opening in Brazil
Just because it’s made in America doesn’t mean that everything has to be built in America. That’s the thinking across the board with nearly all manufacturers where even imports are pulling away from building everything in the United States after decades of trying to do as much as possible domestically. Now, Jeep is ramping up to join this trend with their latest plant opening in Brazil.
Fiat Chrysler believes that the real power behind the success of Jeep has been its dealers. The brand hasn’t had an exceptionally strong marketing presence and while the product line has been robust, it’s not the type of lineup that can induce the record-breaking sales the company has been having the last year and a half. As a result, keeping competitive in pricing means they’ll need to continue their global expansion. Brazil is ripe to reap the benefits with their logistics being stronger than other areas in the world, particularly in South America.
“Today we are not just celebrating the opening of an industrial complex, or a brand or product,” FCA CEO Sergion Marchionne said in a statement. “We are celebrating the spirit of Pernambuco and its people. Without them this extraordinary and ambitious project would not have been possible.”
Taking advantage of their global reach has been one of the most compelling parts of the new relationship between Chrysler and Fiat. The global car giant is able to make decisions that cut costs and improve production in ways that Chrysler simply could not a few years ago. The latest plant opening is another example of a move that Chrysler would not have done on their own.
“By localizing the production of our vehicle … that gives us the ability to price in the heart of the market and with a very appealing vehicle, ” Jeep CEO Mike Manley said.
The heart of the market is exactly where the brand needs to be in order to continue their success. They don’t need to be a discount brand nor do they need to be a premium. The Goldilocks factor is hard at work for Jeep.
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