Export possibilities are especially strong in regions such as South America where Fiat already has a well-developed distribution and sales network.
“They think there is a lot of opportunity overseas for the Jeep brand,” said one senior Chrysler official, who asked not to be identified by TBD. The possibilities are especially strong in regions such a South America where Fiat already has a well-developed sales network.
American car manufacturers have rarely made exports a priority over the past 30 years. The bankruptcy of both Chrysler and GM has forced both companies to re-think their business models.
Jerry York, former Chrysler chief financial officer, who later worked closely with Kirk Kerkorian, said recently that DaimlerChrysler had neglected the export business during the decade it ran Chrysler. Exports of Jeep-brand vehicles actually peaked in 1997, the year before the merger with Daimler-Benz, according to another former Chrysler executive.
After the merger, the export totals declined because Daimler wasn’t interested in supporting them, said another former Chrysler executive.
However, vehicles such as the Jeep Wrangler and Grand Cherokee had been engineered from the start for export and can be equipped with right-or left-hand drive as needed.
Fiat chief executive Sergio Marchionne, who is deeply involved in Chrysler’s reorganization, is pushing hard to change Chrysler as it currently is, insiders said. “It’s much different than Daimler, it’s much less formal.”
“The past few years have offered several painful lessons on what it will take to survive in the modern-day automotive industry. The alliance is a bold first step to implement those lessons we’ve learned, but it is only a first step. Now we must prove we can make it work,” Marchionne said in an e-mail to employees.
Even the new small-car platforms, Chrysler will borrow from Fiat could easily fit into future export plans. “We might not necessarily sell an A-car here but we might sell it some where else,” said another Chrysler official.
Suppliers are also hope that Fiat will transfer some of its well-honed diesel technology to Chrysler. Diesel engines offer major fuel-economy advantages, depending on local regulations, and Chrysler needs a new diesel engine for export markets in Latin America and the Middle East, one expert said.