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Customer LoginsJeep reveals all-new Compass, celebrates SUV's production start in Brazil
Jeep has revealed its new C-segment SUV, the Compass, at an event celebrating the start of the vehicle's production in Brazil. The new Compass replaces both the Patriot and the current Compass models globally.
IHS Markit Perspective
- Significance: Jeep has shared initial information on its all-new C-segment SUV, the Compass, at an event celebrating the launch of the vehicle's production in Brazil.
- Implications: This is the second Jeep to be based on a platform that started with the Fiat family, and the second Jeep to be launched with production outside of the North American region. These moves underscore the evolution of Jeep as a global brand − the only brand in FCA's stable so far successful in making that leap.
- Outlook: The all-new Compass is the second Jeep product, after the Renegade, on a platform initially donated to Chrysler by Fiat. With worldwide production scheduled in 2017, the model is significant in the advance of Jeep as a global brand, competing in the compact SUV segment, which is seeing worldwide growth. In 2014, Jeep set the goal of reaching global production of 1.9 million units in 2018, and the Compass is a key product in that strategy. In 2007, Jeep's global production reached 661,000 units, with 94% of that in the US. IHS Automotive forecasts Jeep's global production will reach 1.51 million units in 2018, with only 54% in the US.
Jeep has released initial photos of the all-new Jeep Compass C-segment sport utility vehicle (SUV), which will replace both the Patriot and the current Compass models, at a celebration of the start of the vehicle's production at Fiat Chrysler Automobiles' (FCA) plant in Pernambuco, Brazil. In a statement, Jeep confirmed that the Compass will be produced with a total of 17 powertrain options and sold in more than 100 countries globally. The statement said, "The all-new Jeep Compass expands the brand's global reach with an unmatched combination of attributes that includes legendary and best-in-class 4x4 off-road capability, advanced fuel-efficient powertrains, premium and authentic Jeep design, superior on-road driving dynamics, open-air freedom, and a host of safety and advanced technology offerings." Sales of the all-new Compass will begin in North America in the first quarter of 2017, with the US-specification model due to be introduced at the 2016 Los Angeles Auto Show on 18−27 November.
A press release for the Brazilian market confirmed the specifications of the launch product, and the powertrains specific to that country. The new Compass brings with it adaptive drive assist technology, including adaptive cruise control and collision warning with automatic braking and lane-change monitoring and warning, as well as parallel and perpendicular parking assist systems. Jeep boasts that much of the equipment is available for the first time on a vehicle built in Brazil.
For the Brazilian market, the Compass launches with a 166-hp 2.0-litre Tigershark engine, mated to a 6-speed automatic transmission, as well as a 170-hp 2.0-litre diesel option. In Brazil, the diesel engine will be mated to a 9-speed automatic transmission and Jeep's 4x4 active drive low, while the gasoline (petrol) engine comes standard in front-drive form. The Compass can be ordered in Brazil as of yesterday (26 September). The 2.0-litre Tigershark engine model is offered in the Sport, Longitude, and Limited trim levels, while the diesel engine is offered in the Longitude and Trailhawk trims. With better fuel economy than the gasoline model, the Brazilian product positioning will treat the diesel engine as the premium model, with more equipment and more off-road capability.
The Trailhawk's suspension is 2 centimetres higher than that of the regular car, and this variant takes off-road tyres and skid plate protection under the body. The Trailhawk is said to earn Jeep's Trail Rated 4x4 seal, based its articulation, ground clearance, manoeuvrability, water fording ability, and traction, according to the Brazilian statement. In terms of infotainment, the Compass receives Jeep's 8.4-inch screen with UConnect and a premium sound system, with a navigation system also available. Models of the Longitude trim level and above have UConnect touch screen, voice command, and air-conditioning as standard.
As largely expected, the new Compass takes styling reminiscent of the Grand Cherokee, compared with the Renegade's boxier look and Wrangler cues. According to the Brazilian press release, the Compass also offers several hidden "Easter egg" design touches meant to reinforce the brand's heritage and to surprise and delight customers.
Outlook and implications
The all-new Compass is the second Jeep product, after the Renegade, on a platform initially donated to Chrysler by Fiat and the second to launch with production outside of the United States. With worldwide production scheduled in 2017, the model is significant in Jeep's advancement as a global brand, competing in the compact SUV segment, which is seeing worldwide growth. In 2014, Jeep set the goal of reaching global production of 1.9 million units in 2018, and the Compass is a key product in that strategy. In 2007, Jeep's global production reached 661,000 units, with 94% of that in the US. IHS Automotive forecasts global production of Jeep products will reach 1.51 million units in 2018, with only 54% in the US.
Production of the new Compass has been launched first in Brazil, although the model is scheduled to be built in India, Mexico, and China as well. IHS Automotive forecasts global production of the Compass will approach 320,000 units per annum (upa) in 2018. This compares with a peak output of about 250,000 units of the Patriot and Compass duo in 2015. The Patriot and Compass were produced at FCA's plant in Belvidere, Indiana, US, alongside the Dodge Dart. North American production for this generation shifts to Mexico and the company's Toluca assembly plant in the US. Adding production in Brazil, India, and China will enable Jeep to participate in more markets, at a price point in line with each market's demand. IHS Automotive forecasts that the Mexican plant will have the highest output, with about 233,000 units produced in 2018. While Brazil is the first production location for the new Compass, China is forecast to see the second-highest output, at about 55,000 units in 2018, but this will grow to more than 63,000 units by 2020. The Indiana plant is forecast to contribute about 14,000 upa to the global production volume.
In terms of sales, IHS Automotive forecasts stronger performance for the new-generation Compass than the previous Compass/Patriot duo. The expanded global availability is part of the dynamic, but the new generation will also benefit from the brand not splitting its promotion and positioning efforts between two products in the same segment. It is also affected by the current global fascination with compact SUVs. IHS Automotive forecasts global C-segment mainstream SUV sales will reach 1.17 million units in 2018 and 1.25 million units in 2021, compared with 1.00 million units in 2015. Jeep's new Compass is forecast to find a place in the top ten in global sales, although in the lower half of this list, along with the Honda CR-V, Toyota RAV4, Hyundai Tucson, Nissan Qashqai, Volkswagen Tiguan, Mazda CX-5, Nissan X-Trail, Kia Sportage, and Jeep Cherokee. While global demand for this vehicle size and type continues to grow, it is largely populated by mature nameplates − in comparison to the B-SUV segment and its newcomers or the expansion of luxury SUVs of all sizes over the past several years. For the Jeep brand, the Compass is forecast to be its top global seller in 2018 and 2019, with the model's share of Jeep sales reaching 20%. As Jeep is forecast to continue to grow its overall range, including an expected Wrangler pick-up, as well as update traditionally strong products such as the Cherokee, in the next decade the Compass's share of global Jeep sales may settle at around 16%, and the Cherokee is forecast to reclaim the position of best-selling Jeep.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.