Community Question: Should General Motors Make A Bid For The Jeep Brand?
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Amid reports Chinese automakers have begun eying Fiat-Chrysler Automobiles for an entire buyout, China’s Great Wall Motor Company stepped forward and publicly confirmed its interest. However, it’s really just interested in what is arguably FCA’s greatest asset: the Jeep brand.
According to Fiat-Chrysler Authority, Great Wall aspires to be the world’s largest producer of SUVs and it has a deep interest in acquiring the Jeep brand. Although FCA has officially rebuked all claims that Great Wall has reached out to begin negotiations over a Jeep or the sale of FCA itself, it didn’t rule out the notion of selling the brand off.
That’s why we’re here to ask if General Motors should step up and make a bid for the iconic Jeep brand.
Jeep has a storied history in the United States, despite trading hands with a few owners over the 20th and 21st century. FCA, arguably, has done the most to help the brand thrive, though. Per analyst estimates, the Jeep brand alone may be worth more than FCA in its entirety at roughly $33 billion.
Looking at General Motors, the automaker lacks a true off-road identity, which many believe was lost with Hummer. Purchasing Jeep would gain GM access to an avid customer base, and as the crossover and SUV market continues to steal passenger car sales, it’s not necessarily a risky bet, but rather it seems like a smart investment. And as GM moves away from unprofitable markets such as Europe, North America and China continue to print money in SUV and crossover sales.
However, there are likely some roadblocks. Purchasing just one brand from FCA would likely come with many caveats. Foremost, Jeep isn’t operated on its own as it stands. It shares dealerships with other FCA brands and the plants where Jeeps are assembled also build additional FCA product. Some serious reshuffling would be needed to make it work.
Not to get political about this, but let’s not kid ourselves either: we have a feeling most Americans would feel better about a U.S. automaker holding onto a brand like Jeep rather than the Chinese carmaker.
So, what say you? Would GM be foolish to pass up FCA’s crown jewel? Or does it not make sense with GM’s current trajectory? Vote in our poll and talk to us in the comment section below.
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The last thing I want is a 4 wd with a four banher in it
If you can’t build a v8 powered 4 wd then why bother!
As for the cost making something cheap is the wrong way to make money.
Offer a 4×4 north of 35k so only the people who really want them can have them!
Really Brian … it’s not always about what you want. Like it or not we live in a global market, and outside of the United States 4 an 6 cylinder engines are the mainstay power plants of choice. You may not be aware but in the E/U gas sells for upwards of $7 per gallon, so thirsty V-8’s need not apply. And of you really think $2.15 a gallon gas prices are going to always be around I guess you forgot 2013 when in NC gas prices flirted with $4 per gallon, in CA it was closer to $5 per gallon. OPEC could wake up today and raise oil prices. Now … economics lesson. If you live in the US Snow Regions 4WD is a necessity, not a luxury. The smaller SUVs w/all wheel drive like the Buick Encore for instance have done well. Now … a lesson in practicality … after WWII the humble Jeep like the Army rode to victory in came home and like the soldiers who drove it, and found it’s way into Americans hearts … especially in the farming community. The humble jeep was outfitted with an optional rear pto (power take off) like a tractor and could be fitted with a generator for instance to supply electric power in an emergency … among other uses. It’s aftermarket accessories GM can control an sell that’d make them money. The Jeep in my thoughts could do this job, it could be a vehicle for the masses in the Snow Regions around the world, it could be again used in the Military, it could again be found working on America’s farms as well as farms around the world. Again, we live in a global market, and that buyer in South America whose needs are dramatically different from yours really could care less about “the last thing Brian wants”. Today it’s insane that people are buying Surburbans, Expeditions, and Escalades among other 14 mpg SUV’s to be family haulers. I … personally would love to see the Chevrolet Caprice Estate Wagon come back. A woman once told me that she’d not be caught dead in a “station wagon” … to which I replied … really … you’re merely driving a jacked up, 4WD station wagon, that you paid close to $55K for the privilege. She blinked as she realized that statement was true. We walked out together from Little Caesars I climbed into my Malibu Maxx … her into a Surburban.
I am not like most people in this world!
I for one could care less what other people are doing around this world.
I also could care less what other laws or rules countries around the world have.
I don’t care how much fuel cost in another country.
I am probably the only person that would love to see the gas prices go back up to 5 bucks a gallon and stay there for a couple of years.
All of these gas guzzler cars and trucks that people will dying to sell will be able to pick up on the cheap.
I could care less about what the window sticker says in terms of MPG.
People in America need to stop worrying about the rest of the world. Stop building crap for other countries and put this counties priorities first.
Having a big v8 in every vehicle should be a priority!
If you haven’t figured it out I am not a planet loving tree hugger
The American economy is large enough it does not need to bow to the whims of the EU. I don’t care what little pieces of junk pass for cars in Europe. I don’t live in Europe. We like our power – 500+ just for the fun of it – Camaros, Corvettes, Mustangs, and Hellcats! And yes, range matters. To hell with electric cars. That idiotic precept seems to forget that the electricity they run on starts it’s life as FOSSIL FUEL burned in a POWER PLANT and concentrating fuel burning by increasing power plant fuel burn is worse for the environment than having multiple fuel burning cars disperse the exhaust over a wider area (research “temperature inversion”).
If the Socialists wanna be Socialists – let them. When they ruin their economy and their culture, we’ll be waiting here, Constitution in hand willing to point them to a copy of it to fix their messes (again).
Research the Bakken formation.
We have more oil in this country than in all of the Middle east combined. It is not as easy to get to as we don’t have the luxury of sticking a straw in the sand, but there are ways. We only depend on others because we allow ourselves to with idiotic legislation. But now that we got the Clown-In-Chief out of office and grown ups are in charge again (well, OK, Capitalists), I am far less concerned about what cute pieces of junk sell in Europe. We sell cars with 700+ and 800+ horsepower in this country – and we’re ready for a return to the Big Block and anxious to enter the era of 1,000+ horsepower supercharged engines. We may be the fringe, but Dodge had no problem getting orders for the Demon – dealers were charging between $20,000 and $70,000 just for the rights to pay another $85,000 to get one (they were auctioning off the purchase rights). We even have a 707 horsepower grocery getter – https://www.jeep.com/hostc/bmo/CUJ201803/models.do (Trackhawk).
The Ford Raptor is also selling well as a 400+ horsepower racing truck.
Europe can keep their Socialist heads of state (way to go Greece!), their 300 kph governors and their 4 bangers and six cylinder junkers. We don’t need that crap here.
I have a 1970 chevy c10 with a 600 hp 383/700r4 3.73 12 loc right posi. It drinks fuel like a big dog drinks water!
I love high hp GM cars and trucks and I hope that never changes, I also don’t mind if battery based cars are built for the us!
My only issue or concern is that they won’t both always be a option. As long as the big cubic inch high hp engines are offered then I have zero problems with fuel sipping cars and trucks.
Just don’t take away my right to have either or!
NoisewithoutReason,
I won’t go over all the falsehoods in your diatribe but you should know that your so called American car companies (the 2 of them) are in a zero growth environment in the US and can’t survive without business outside the US. Haven’t you noticed that Cadillacs are now designed to cater to the taste of the new wealthy class of Asians. (larger mirrors, back seats and wheelbases) Take a look around you, the US is becoming a third world country and all the growth on the planet is taking place in Asia. The world is moving away from fossil fuels with or without the US. The Chinese Communist party has dictated that all transportation is to move to electrification with clear targets. China is emerging as leaders of the world and France and Germany the new leaders of the free world. The US is becoming irrelevant and isolated. The entire world is laughing at the gross incompetence, arrogance and impotence of your government. Your Village Idiot in Chief and his Soviet born prostitute are an embarrassment.
Oh and for the climate change ass holes like you, mother nature is coming your way and let it be known, this is just the beginning. Miami, Florida, New Orleans, Louisiana, Texas, California, New Jersey, New York better figure out how Venice was built before they become part of the world oceans. I doubt they will.
I don’t live anywhere near any of those states so I could care less what happens when the hurricane hits! It doesn’t matter what happens around the world I will still drive my v8 gas guzzler and be proud of it!
There is this movement to small underpowered cars and trucks because the world has realize that they can’t compete with the US in terms of hp at the us price point! So what does the rest of the world do? Make up this crazy climate change crap to force people and countries to conserve fossil fuel!
70% of the cars sold in the US are 4 bangers and the average age of the car fleet is over 11 years old. No one is asking you to give up your V8. A recent study by Consumer Affairs stated that most American families can’t even afford a new car so I’m not seeing this huge stampede to 500+ hp V8. So this comment is also aimed at you NoisewithoutReason.
Fuel in Europe is 6 to 8+$ per gallon and look at the product line of German brands. In terms of mega horsepower models available, they put everybody else to shame. But they are also improving efficiency and will be leaders in electrified vehicles.
What a douche of a windbag.
No need to sell FCA – they are on pace to be profitable by 2019.
Jeep driveline is shared among other FCA products and any venture purchasing FCA would lose that leveragability (could replicate it, but at cost).
GM killed the Hummer because they’re stupid. The original was renown for it’s off-road prowess. Remember the central drive shaft, CV joints, lack of differentials? They got rid of all that and threw a modified body on an otherwise normal drive train then tried to market it by showing it driving down a beach. I used to laugh at people who bought/drove those things. They were no better than any pickup truck or Suburban off-road. They were just big and unique looking. They were lousy on road and were nothing special off-road.
GM would ruin Jeep. Their late model trucks are hideous looking.
This is how you design a truck:
https://www.ramtrucks.com/limited-editions/1500/trx/index.html
You or any American have nothing say about the future of FCA. FCA IS NOT AN AMERICAN COMPANY and hasn’t been for nearly 20 years. They’re not even registered in the US. In case you haven’t noticed, F in FCA is for Fiat and they run the show. Fiat was handed the ashes of Chrysler during bankruptcy in the hope of saving a few jobs at a time when the company had negative equity. Which means they were worth less than nothing.
FCA is just another company which can’t survive on its own and doesn’t have the money to develop future products that the “world” would want to buy. The Demon, Hellcat and TrailHawk are just cheap to develop distractions to create some excitement on an otherwise outdated product line with the lowest quality in the auto industry. Capiche?
Actually, FCA did develop new Jeep models and managed to increase the world wide sales since 2009 from about 350,00 to 1.42 million. They are now revitalising the Alfa Romeo brand, and their sales numbers keep growing.
This said, let me add that it is not important to “Buy American”, but to “Buy Union”. Support workers, not the union-busting bosses.
I think GM would make Jeep way more reliable. The build quality of Jeep interiors is very premium at this point, with interior materials and aesthetics very well appointed and designed. Thanks to FCA. FCA really gave them that breath of fresh air and it was badly needed. Still though, as plush as they are, the mechanical reliability is still poor and Jeep still seems to produce vehicles that have many problems at premature mileage intervals compared to other brands. Electrical and drivetrain issues are still excessively prevalent. Many people dont have issues but there are also a lot of people that do, seemingly more so compared to owners of other makes and models. GM has a history of producing mechanically reliable vehicles that go well over the 200k mile mark with relatively no issues. I would love to be able to buy a Grand Cherokee with the reliability of a Tahoe. After having read thousands of owner reviews of Tahoes and Yukons, I know GM makes very reliable vehicles fit for long term ownership. For instance, every other Tahoe/Yukon review notes how little their owners have had to do to maintain their vehicles and have over 200k miles. Conversely, Jeep owners note how they have spent a fortune in maintaining their vehicles in every other review. So despite Jeep’s lavish interior quality implies the mechanical quality is just as premium, but its not according to reviews. My Jeeps unfortunately have had non stop issues, however they are older models from 98 and 2002 and may have been maintained very poorly prior to my ownership of them. Still though, I know a few people that have newer post-FCA merge Jeeps and they to have had excessive issues. I just don’t understand why they can’t be built to the same reliability standard as other brands. Jeep could make an even bigger killing otherwise and GM engineers could help Jeep achieve that by upgrading the glitchy mechanics to more sound options and keeping Jeep’s current aesthetic design cues. I’m not sure if Jeep is cutting costs where they shouldn’t or just poorly selecting where they’re buying parts from, or both.