DETROIT (AP) – Fiat Chrysler says the worldwide SUV craze is here to stay, and it’s leaning heavily on the Jeep brand to improve its fortunes.
The Italian-American carmaker predicts Jeep sales will nearly double to 2 million worldwide by 2018, fueled by low gas prices and new models. To keep up, Fiat Chrysler plans to cut production of small cars in the U.S. so it can build more Jeeps.
The world’s seventh-largest carmaker raised its Jeep sales targets Wednesday after releasing disappointing full-year earnings for 2015.
Fiat Chrysler reported 2015 net profit of 377 million euros ($409 million), down from 632 million euros a year earlier and lagging analyst expectations. Fourth-quarter net profit fell 40 percent to 251 million euros.
Jeep was the bright spot. Fiat Chrysler sold 1.3 million Jeeps worldwide in 2015, up 21 percent from the previous year. Without Jeep, Fiat Chrysler’s sales were lackluster. The company sold 4.6 million vehicles overall, up slightly from 2014.