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Fiat’s US deal sees iconic Jeep made in Italy

US off-roaders seeking to rev up the four-wheel drive of a Jeep might soon find out that their American icon is made in Italy.

Fiat's US deal sees iconic Jeep made in Italy
Jeep traces its roots back to 1940 when the US Army asked carmakers to design a new vehicle. Jeep photo: Shutterstock

In a sign of what comes with the takeover of Chrysler by Italian giant Fiat, US auto dealers have begun selling the Italian-made Jeep Renegade.

The new Renegade, a small 4×4 SUV, was shipped to dealers last week, according to Todd Goyer, US spokesman of Fiat Chrysler Automobiles (FCA). The Renegade will hit showrooms nationwide in volume next month, with prices starting at around $20,000 (€18,300).

Jeep traces its roots back to 1940 when the US Army asked carmakers to design a utility vehicle that could be used for scouting and which could move quickly.

Willys came up with the best design and the "jeep" – possibly a made-up word for "G.P." or "general purpose" – became the workhorse of the US forces in the Second World War. It remained in production until 1982 and was used by armies all over the world until it was finally replaced.

For the motoring public the Jeep morphed into offroad-capable commercial cars like the CJ-5 and pioneering sports utility vehicles like the Wagoneer and Cherokee.

Jeep, which was taken over by American Motors in 1970 and then came under the control of Chrysler in 1987, has since then benefited greatly from the overwhelming popularity of SUVs in the US market since the 1990s.

It is now a key element of Fiat Chrysler Automobile's plans to expand globally, and the Renegade is tapping one of the hottest market segments, small SUVs.

The Renegade was designed and engineered at FCA US in Auburn Hills, Michigan, but is being built in a refurbished assembly plant in southern Italy.    

It shares a platform with other Fiat cars like the 500X and 500L and the Alfa Romeo MiTo.

It will also be built in Brazil with components from Italy and the US, for local and export markets.

Art Anderson, FCA US chief engineer, said the Renegade was designed to deliver the Jeep brand's traditional capability in a relatively small package that is bolstered by the latest electronics, which are used in the driveline.

The Renegade is capable of switching automatically from four-wheel to two-wheel drive, and offers optional driver's-assistance features such as a backup camera.

The Renegade is expected to augment US sales without cutting into those of the Jeep Compass, Patriot and Wrangler, all of which have benefited from a revival of Jeep sales since the end of the recession in 2009.

Overall Jeep sales were up 20 percent in the first two months of 2015 compared with a year earlier, despite criticism of its quality by one of Americans' favorite car-buying guides, Consumer Reports.

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CARS

From lizards to water, eco-bumps snag Tesla’s giant Berlin car factory

In the green forest outside Berlin, a David and Goliath-style battle is playing out between electric carmaker Tesla and environmental campaigners who want to stop its planned "gigafactory".

From lizards to water, eco-bumps snag Tesla's giant Berlin car factory
Tesla's gigafactory outside the doors of Berlin. dpa-Zentralbild | Patrick Pleul

“When I saw on TV that the Tesla factory was going to be built here, I couldn’t believe it,” said Steffen Schorch, driving his trusty German-made car.

The 60-year-old from Erkner village in the Berlin commuter belt has become one of the faces of the fight against the US auto giant’s first European factory, due to open in the Brandenburg region near Berlin in July.

“Tesla needs far too much water, and the region does not have this water,” said the environmental activist, a local representative of the Nabu ecologist campaign group.

Announced in November 2019, Tesla’s gigafactory project was warmly welcomed as an endorsement of the “Made in Germany” quality mark – but was immediately met with opposition from local residents.

Demonstrations, legal action, open letters – residents have done everything in their power to delay the project, supported by powerful
environmental campaign groups Nabu and Gruene Liga.

Tesla was forced to temporarily suspend forest clearing last year after campaigners won an injunction over threats to the habitats of resident lizards and snakes during their winter slumber.

READ MORE: Is Germany’s Volkswagen becoming ‘the new Tesla’ as it ramps up e-vehicle production?

And now they have focused their attention on water consumption – which could reach up to 3.6 million cubic metres a year, or around 30 percent of the region’s available supply, according to the ZDF public broadcaster.

The extra demand could place a huge burden on a region already affected by water shortages and hit by summer droughts for the past three years.

Local residents and environmentalists are also concerned about the impact on the wetlands, an important source of biodiversity in the region.

Tesla Street

“The water situation is bad, and will get worse,” Heiko Baschin, a spokesman for the neighbourhood association IG Freienbrink, told AFP.

Brandenburg’s environment minister Axel Vogel sought to play down the issue, saying in March that “capacity has not been exceeded for now”.

But the authorities admit that “the impact of droughts is significant” and have set up a working group to examine the issue in the long term.

The gigafactory is set to sprawl over 300 hectares – equivalent to approximately 560 football fields – southwest of the German capital.

Tesla is aiming to produce 500,000 electric vehicles a year at the plant, which will also be home to “the largest battery factory in the world”,
according to group boss Elon Musk.

In a little over a year and a half, swathes of coniferous forest have already been cleared to make way for vast concrete rectangles on a red earth base, accessed via the already iconic Tesla Strasse (Tesla Street).

German bureaucracy

The new site still has only provisional construction permits, but Tesla has been authorised by local officials to begin work at its own risk.

Final approval depends on an assessment of the project’s environmental impact – including the issue of water.

In theory, if approval is not granted, Tesla will have to dismantle the entire complex at its own expense.

But “pressure is being exerted (on the regulatory authorities), linked to Tesla’s significant investment”, Gruene Liga’s Michael Greschow told AFP.

In early April, Tesla said it was “irritated” by the slow pace of German bureaucracy, calling for exceptions to the rules for projects that help the environment.

Economy Minister Peter Altmaier agreed in April that his government “had not done enough” to reduce bureaucracy, lauding the gigafactory as a “very important project”.

Despite Germany’s reputation for efficiency, major infrastructure projects are often held up by bureaucracy criticised as excessive by the business community.

Among the most embarrassing examples are Berlin’s new airport which opened last October after an eight-year delay and Stuttgart’s new train station, which has been under construction since 2010.

Brandenburg’s economy minister, Joerg Steinbach, raised the possibility in February that the Tesla factory could be delayed beyond its July planned opening for the same reason.

SEE ALSO: Tesla advertises over 300 jobs for new Gigafactory near Berlin

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