Maserati looks to build SUV in Detroit
(August 19, 2011) MILAN – Fiat S.p.A.'s ultra-luxury Maserati brand plans to build its first sport-utility vehicle at Chrysler Group's Jefferson North assembly plant in Detroit, said a person familiar with the matter. A concept version of the model, which will be based on the Jeep Grand Cherokee, is due to be unveiled at the IAA in Frankfurt next month, said the person, who declined to be identified before the official announcement.The American-made Maserati SUV is a product of the integration between Fiat and Chrysler. Sergio Marchionne, who runs both carmakers, aims to expand Maserati and sister brand Alfa Romeo by drawing on Fiat and Chrysler's combined size to boost profit. The strategy mimics Volkswagen AG's blend of volume brands and high-margin luxury nameplates that's helped Audi generate more than 40 percent of the group's earnings from less than 20 percent of sales.
The project risks turning off fans of the brand's sleek Italian styling and sporty reputation like Geoff Lancaster. The 61-year-old owner of a 4200 Spyder is concerned that a Jeep-based Maserati could fall flat like the TC project between Chrysler and the Italian carmaker in the late 1980s.
"The crucial thing is going to be how well they differentiate it from its Grand Cherokee roots," said Lancaster, who works in London and has driven Maserati cars for the past seven years. "Maserati will have to wave their magic wand over it quite aggressively to make it competitive."
The Italian manufacturer aims to counter that concern and replicate the success of Porsche SE's 57,930-euro ($84,044) Cayenne. The German manufacturer now relies on the SUV for half its deliveries, even though it shares its chassis and many other parts with the 49,600-euro VW Touareg. A smaller Porsche SUV is under development for 2013.
"The important point is that whatever Maserati we launch will be a product that respects the entire heritage, image, characteristics, and customer expectations of this brand," Harald Wester, Maserati's CEO, said in a March interview. "What ends up in the dealer shops should be 100 percent Maserati."
Demand for luxury SUVs has nearly doubled since 2000 as high-end carmakers target the lucrative niche. BMW AGintroduced the X1 in 2009, expanding its lineup to four SUVs. Audi introduced the Q3 this year, and Tata Motors Ltd. unveiled the Range Rover Evoque. VW's Bentley is also considering an SUV.
Even by breaking with its Italian roots, the brand identified by its trident emblem has a chance to win over customers if the carmaker can turn the Jeep into an authentic Maserati.
"It's a trick that can be pulled off," said Maserati- owner Lancaster. "The current management is very canny."
The Italian manufacturer declined to comment on Maserati's product plans ahead of the Frankfurt show.
Source: Bloomberg; Automotive News Europe
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