According to a research note from Morgan Stanley analyst Adam Jonas published last Monday, Fiat Chrysler Automobiles’ Jeep brand is worth more than its parent company, CNBC reports. Jonas’ note valued Jeep at about 120% of FCA’s current market capitalization, saying that Jeep could account for roughly half of all Fiat Chrysler sales by next year.
Sales for the Jeep brand have already exploded since Italian carmaker Fiat took control of Chrysler in 2009, increasing four-fold to more than 1.6 million global sales last year.
Fiat Chrysler Automobiles CEO Sergio Marchionne said last April that he might be open to the idea of spinning off the Jeep brand, which CNBC anticipates could look similar to how the company sold off its controlling stake in Ferrari early in 2016. The automaker would still then have the Dodge, Chrysler, Ram, Fiat, Alfa Romeo, and Maserati brands, although Marchionne has also expressed openness to the idea of selling Ram.
Such a move would be dramatic, to say the least, but the capital raised by the sale of Jeep or Ram could help fuel more product development – something that Dodge and Chrysler, in particular, are in desperate need of.