Will Jeep Become Its Own Company?

Marchionne fuels new speculation that Jeep might separate from FCA and form its own company.

There’s been growing speculation that Jeep might be revving up to become its own independent company. That means ditching its ties to all of the other nameplates under Fiat Chrysler Automobiles (FCA).

Rumors of Jeep being positioned as a separate company started swirling in 2011 when FIAT jumped at the opportunity to buy Chrysler, Dodge, and Jeep, all part of the then Chrysler group. But a recent interview with FIAT Chrysler CEO Sergio Marchionne has reignited the idea.

During a conversation with CNBC‘s Morgan Stanley, Marchionne was specifically asked, “Jeep and Ram … are these businesses large enough, let’s say together or separately, strong enough, independent enough to exist as a stand-alone entity outside of FCA, like Ferrari? ”

The CEO’s response? “Yes.”

CHECK OUT: What Forum Members Are Saying About Such Speculation

Of course, there’s some obvious differences between Jeep and Ferrari. Namely, that the longtime American-based nameplate is a far bigger brand to manage than the Italian sports car company. But that very thing also puts it in a great position to exist on its own. That’s especially true in light of the brand’s global growth in recent years.

In fact, the CNBC report contends that outside of Tesla, Jeep could very well be the hottest carmaker brand in the world.

Still, we’d argue that even with all the buzz Elon Musk’s all-electric company has garnered, it still doesn’t come close to the broad appeal of Jeep. But we get CNBC’s point. And from a business perspective, the idea of Jeep separating from FCA seems even more viable if you consider that the stock value of Ferrari increased significantly when it separated from FIAT.

Will it happen? Well, only time will tell. But Marchionne is definitely known for shaking things up. So, we wouldn’t be surprised if something is already in the works.