Global automakers have been eyeing Fiat Chrysler Automobiles recently with mergers gleaming in their eyes, and for a good reason. The Jeep brand, in addition to being internationally recognized for its rugged and stylish SUVs, is also the most profitable name within FCA.
FCA Chief Executive Officer Sergio Marchionne expects Jeep sales to increase to 2 million vehicles in the coming year following a worldwide surge in the appetite for SUVs. He believes this trend could eventually increase to 7 million vehicles per year. Back in 2009 when Fiat acquired Chrysler, Jeep was delivering near 300,000 vehicles, a number that has been steadily increasing.
This news comes during a storm of uncertainty centered around Fiat Chrysler Automobiles. Recently there have been whispers of Chinese automakers extending offers to buy the Jeep brand from FCA, none of which can be confirmed. Many wonder why the company would sell its most valuable asset, especially when the Jeep brand is so lucrative. Morgan Stanley estimates Jeep to be worth $27 billion dollars, a number that could increase with the introduction of the new Wrangler JL and the Jeep Scrambler in the next year.
This news has sparked an increase in Fiat Chrysler shares this week with stocks in the company closing at a record high. What does this mean for Jeep enthusiasts? Aside from your stock prices going up, you might see more fellow Jeepers on the road in the coming years.