Jeep Says Rising Retail Deliveries Will Offset Cuts in Fleet Sales

The head of Fiat Chrysler Automobile NV’s Jeep unit predicts that strong retail demand for the American brand’s iconic SUVs will offset a 50% drop in sales to fleets this year.

Mike Manley tells reporters he expects Jeep’s global sales will be “up or flat” in 2017, thanks in part to the debut of the redesigned Compass small SUV over the next few months. His comment comes as Jeep sales in the U.S. fell 10% in a market where overall SUV/crossover demand grew 11%. The new Compass is just beginning to reach dealers now.

Jeep also has been pushing hard to build sales in relatively undeveloped overseas markets. The brand has slashed its fleet business because sales to rental companies carry lower profit margins.