Jeep’s Future Could Be in Limbo for a Long Time

Jeep’s Future Could Be in Limbo for a Long Time

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Bloomberg highlights why FCA may not sell its most iconic (and profitable) American brand.

We hate to keep bringing up the potential sale of Jeep. But it’s tough to ignore while the subject dominates the automotive rumor mill.

There’s a lot at stake when it comes to any major move on FCA’s part. But the uncertainty of what could happen if Jeep is cast off alone makes a lot of brand loyalists nervous. Not to mention the kind of impact it could have on the Italian-American company, considering how much Jeep means to its bottom line.

At this point, the idea of a Jeep sale is pretty much speculation. And a recent Bloomberg report makes an interesting argument as to why the brand likely won’t be jettisoned. Well, at least not anytime time soon.

 

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One of the biggest factors is FCA’s need to stay financially healthy for investors. In fact, the Bloomberg report points to comments made by CEO Sergio Marchionne indicating a shift away from his earlier ideas about selling the brand.

“If we start picking away all the things that appear to be interesting to people, then I think we’re going to end up with a sub-optimal business that cannot run,” Marchionne tells Bloomberg.

That said, Marchionne has been known to make abrupt decisions that have left people stumped. So, you might want to hold off on making any bets on Jeep’s future. This is one story that’s likely to continue to evolve.


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