In conversation with Kevin Flynn, president and MD at FCA India
Q: Excited about bringing Jeep to India?
A: How many times in your career do you get an opportunity to introduce an iconic, already globally known brand into a new market? This year being Jeep’s 75th year anniversary, there couldn’t be a better time to do it. There’s nobody in our target market that doesn’t understand what a Jeep really is, even though it becomes a name for a whole segment. The Wrangler is undoubtedly the most capable 4×4 SUV in the world. Then, we have got the Grand Cherokee, most awarded SUV in the world and now, we bring the mad, badboy, the SRT. I feel excited, elated, proud, responsible.
Q: Is it going to be a challenge to get Jeep into the Indian market?
A: Some people buy SUVs because they want that stance and have got zero interest in whether it has 4×4 capability or not. I remember what Jim Morrison said “100 per cent of the Jeeps go off-road” – some really go off-road and some go off-road in people’s minds and that’s fantastic. You have the capability and the authenticity to do it. There is only one Jeep, and every Jeep lives up to the requirements of being a Jeep. We are the largest SUV manufacturer in the world. Last year we sold 1.24 million SUVs; Jeep doesn’t sell anything other than SUVs. So that’s different from the others. All the other car companies, bar one probably, actually have SUVs as part of their lineup. They are all lifestyle statements and not based on capability and that I think is the difference. If you want a car with the stance of an SUV, you’ve got loads of choice but if you want a car that is a proper 4×4 SUV, there is only one.
Q: How are you going to ramp up dealerships for Jeep?
A: We’ve already recruited seven really good partners who will set up really cool ‘Destination Jeep’ dealerships in the seven key markets and by the time the made in India, brand new Jeep SUV is launched, we will be at ten dealerships and then, we will start looking at our outer territories and how we can best utilise our Fiat partnerships.
Q: So right now there are no synergies with the existing Fiat network?
A: There is one Fiat dealer that has secured the appointment and we will work with him to see how that best works out. We have other partners that are keen also to take Fiat dealerships but we are setting up Destination sites, so we will have one in the big cities where people go to the Jeep store to have a cup of coffee, look around the Jeeps. It’s that kind of real brand experience, the clothing, the whole experience, that’s what we are going to do. Some of them will even be putting in 4×4 activities on site, so I think that’s the way we are going to do it. I’m not going to put a dealership on every street corner and dilute it. We will compensate for distances the customer has to travel to get there by offering great customer service and pick up and drop off and the like but the Jeep store is where you want to go and we’ve got to make sure we create that.
Q: What about Fiat?
A: We are working on that very hard. I’ve got to build a sustainable business for the future and I’m not going to do things that worklike short term patchwork. So, the best way to describe what we are doing is by splitting it into three pillars. The first pillar is being reflective on what we have achieved in my first year here. Have we managed to achieve what we set out to do and I’m impatient so that answer is probably going to be “I wish we were further on”. Nevertheless we’ve really sorted out our dealer relationships and we’ve really sorted out our infrastructure. There’s also a bit of rationalization to make sure we’ve got the right partners to work with us. Then I jump to the third pillar and that is, what do we look like in two years time? What do we look like in five years time? What are the products that we’ve got, the whole thing. That’s close to being locked down. More importantly, what I can do is understand how the journey’s been from the edge of the first pillar through to the third pillar and that’s the middle piece of strategy. We’ve done a lot in the first pillar, things like the Urban Cross are part of the second one and what else can we do to sprinkle some dazzle on our range and how we can get a better entry price. How can I maximise what I’ve got? That’s what I’m going to do through 2016.
Q: How is Abarth doing in India?
A: I am happy with Abarth. I think I can be happier with Abarth. I think we need to tweak the strategy a little bit. My goal was to have a better distribution of the Punto Abarth and I will achieve that as we move into the new year. It actually wasn’t a volume driver and we did it to demonstrate that we are alive and kicking, we have a level of determination and we can be a lot of fun. The car has really gained a lot of praise, not for just what it is but for the fact that we actually did it. At the end of the day, we are the first car company in India to produce a hot hatch and it says a lot about us. I remember what this kind of thing did for other car companies in Europe many years ago, and putting 145bhp in a Punto is a lot of fun and it says so much about us. It says we’re not just plugging on, we are making a difference. Next job for us it to make us visible, but the Punto Abarth has done a lot for us as a flag waver. Part of the rationalisation that is going on, part of the tweaking in our strategy that is going on,will give the Punto Abarth the push to do more numbers than it is right now.
Q: Any plans for the two-door Wrangler in India?
A: There is never any time to say no plans. What we have shown at the show is the four door, and that’s actually the major volume seller. It has really energised the Wrangler nameplate and its got greater flexibility. It’s like a sedan versus a two-door sportscar. These cars have to do multiple tasks – they have to be able to take you to the Rubicon trail, of which we must find an equivalent in India, but at the same time it has got to be able to go to the restaurant, or on holidays and therefore the four door for us was the right choice. We also gave the hard and soft top in one package, it is a heavily specced car and it is a great product. Whether the two door comes, if I look at all the products in the Jeep range and there’s lots of things to look at, let’s start with what we know, what we are going to build on, and go from there.
