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Jeep Sales (Wrangler) are strong!

3.8K views 23 replies 16 participants last post by  Rictus58  
#1 ·
Copied from the local news - It gets very interesting at the bottom

Local4 said:
DETROIT -- Apparently, the Jeep Wrangler is rugged -- and capable of hauling an entire division out of the swamp.

The popular two- and four-door sport utility is coming off its best-ever May while buoying a slumping Jeep division beset by declining sales.

According to Autodata Corp., Jeep sold 12,332 Wranglers in May, up 114 percent compared to the same month last year. For the year, 54,699 Wranglers have been sold, an 85% increase compared to last year.


Strong Wrangler sales also helped fuel an overall 20 percent May sales increase for Jeep and a 12 percent year-to-date increase compared to last year.

"The Jeep Wrangler is the icon of the brand," said Chrysler Group spokesman Markus Mainka, adding that no incentives have been offered since the vehicle was redesigned and released last September from a retooled Ohio plant.

Based on Autodata figures, the Wrangler accounted for about 29% of Jeep's total May vehicle sales and 27 percent of the division's 2007 sales to date.

Wrangler's strong showing last month also boosted the Chrysler Group division's market share of U.S. light vehicles from 2.4% to 2.7% last month. For 2007, Jeep's market share increased from 2.6% to 3.0%.

Industry analyst Alex Rosten said redesigning the Wrangler was the key to Jeep's recent success.

"Now they can't make enough of them," said Rosten, an analyst for EdmundsObserver.com. "It's always better to expand existing product lines than create a new one."

But the Wrangler's success contrasts with slumping sales for other Jeep products.

According to Autodata, every other Jeep vehicle for which comparative statistics were available posted negative marks, led by the Liberty's 39% sales decline compared with May 2006, and its 28% year-to-date decline compared to last year.

Grand Cherokee sales fell 18% in May and 20% for the year to date, while Jeep Commander sales fell 9.7% in May and 10% so far this year.

According to Jeep officials, May sales for the Compass totaled 3,735, while 4,505 Patriots were sold. In 2007, Jeep has sold 18,812 Compass models and 10,336 Patriots. Both vehicles are in their first year of production.

"We develop each vehicle to appeal to a different kind of customer," said Chrysler spokesman Dan Bodene.

He said introducing the Compass and Patriot was an attempt to enter new markets by leveraging the company's recognizable nameplate. Bodene said Jeep will work harder to deliver the message about its core products and may offer new incentives.

Rosten said that might not be enough. He said the Grand Cherokee is "too old," while new models like the Compass and Patriot are "too redundant." "Jeep has shot itself in the foot by releasing the Patriot and the Compass," he said. "By doing so, they have cannibalized other products, like the Liberty."

On Tuesday, Jeep canceled its scheduled announcement of a new advertising campaign developed by Cutwater, a San Francisco-based advertising agency. Chrysler officials said the postponement until later this week was due to a scheduling conflict and had nothing to do with recently released sales numbers.
 
#3 ·
"We develop each vehicle to appeal to a different kind of customer," said Chrysler spokesman Dan Bodene.

He said introducing the Compass and Patriot was an attempt to enter new markets by leveraging the company's recognizable nameplate. Bodene said Jeep will work harder to deliver the message about its core products and may offer new incentives.

Rosten said that might not be enough. He said the Grand Cherokee is "too old," while new models like the Compass and Patriot are "too redundant." "Jeep has shot itself in the foot by releasing the Patriot and the Compass," he said. "By doing so, they have cannibalized other products, like the Liberty."
I am upset by the fact that he is short sighted in his cannibalized statement and the lack of data to support the Patriot as being a mistake (how is a vehicle a mistake when its sales numbers continue to grow as more people find out about it). You cannot cannibalize a product that has hit its target audience. The Wrangler is so successful because it does the best job of hitting its target. If anything, the Wrangler Unlimited is cannibalizing the Liberty. Now that there is a Wrangler SUV why settle for anything less if you are a diehard Jeeper.

I myself am probably never going off-roading but I like the Patriot because it fits what I want and need. The Liberty does not fit my needs. What I would say is that either the Compass or Patriot needs to go because they are redundant of each other. Pick the one that appears to be most successful and can the other.

The true redundancy lies in the fact that there are now 3 large SUVs; Commander, Wrangler Unlimited, Grand Cherokee. It would be interesting to see the qty of Wrangler Unlimiteds produced/sold compared to the other 2.
 
#9 ·
I am upset by the fact that he is short sighted in his cannibalized statement and the lack of data to support the Patriot as being a mistake (how is a vehicle a mistake when its sales numbers continue to grow as more people find out about it).
Yeah, I'm a bit puzzled by the less-than-positive comments about the Compass and Patriot.


I myself am probably never going off-roading but I like the Patriot because it fits what I want and need. The Liberty does not fit my needs. What I would say is that either the Compass or Patriot needs to go because they are redundant of each other. Pick the one that appears to be most successful and can the other.
I disagree. Because both models share so much, it doesn't cost Jeep as much to maintain both. The Compass is a nice vehicle and has a place in the market. The problems are the Jeep gearheads who have specific ideas of what a Jeep should be and denounce the Compass because it doesn't fit their idea.

The Compass is not MY kind of Jeep, but it does appeal to younger women... and seniors, guys who don't need the heft of a 4x4 SUV but still want a 4x4 Jeep.

The true redundancy lies in the fact that there are now 3 large SUVs; Commander, Wrangler Unlimited, Grand Cherokee. It would be interesting to see the qty of Wrangler Unlimiteds produced/sold compared to the other 2.
I wouldn't consider the Wrangler Unlimited a LARGE SUV. I agree that the Commander and Grand Cherokee are somewhat redundant. I'd like to see the Commander take on some more neoclassic Jeep styling cues and the Grand Cherokee discontinued.
 
#4 ·
It's a very interesting article for sure... I don't think they were hammering on the Patriot. I think the Patriot and Wrangler are Jeeps two best products.

The Patriot has more conquest sales than any Chrylser product out right now and the Wrangler, well, is untouchable as far as versatility now.
 
#5 ·
Well, Duh!

Of course Commander and Cherokee sales are falling. At $3+ for gas, who wants a vehicle that gets less that 20mpg? In the Commander's case, well below 20mpg. What were they going to do, put the 2.4L in the Commander? They needed new ideas and new concepts to meet consumer demands for better mileage and lower TCO.

Commander's demise is already scheduled and I don't think the Cherokee will be far behind. At the very least production will be scaled back and it will become the highend luxury model. I am also willing to bet there will be a widely marketed diesel version for 2009 as CRX now seems more focused on fuel economy. I personally believe the TrailHawk will replace the Cherokee by 2010.

Looking further into my crystal ball, I also predict the Compass will go and the Gladiator will eventually arrive and I am willing to bet a CRD will be standard and gasoline will be optional.
 
#6 · (Edited)
Liberty sales may also be dropping because of the new model arriving this late summer/fall. Buyers may be waiting...

I like the Liberty, but have always found its size and mileage to be very similar to the GC--that seemed redundant to me. The GC was originally meant to replace the Cherokee, but marketing showed they could sell both, so they upscaled the GC. And sold tons of both... Then the Liberty finally replaced the Cherokee and has also sold very well.

I think many are like myself--wanted a Jeep, but also wanted good gas mileage. I am thrilled to have the best of both worlds! I have wanted a Jeep (any-but especially a CJ5) since the Black Bear Road album cover of 1975!
 

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#11 ·
Liberty sales may also be dropping because of the new model arriving this late summer/fall. Buyers may be waiting...
I believe that the drop in Liberty sales is a direct result of the interest in the Compass and Patriot.

It seems like Liberty sales of previous years didn't reflect the true customer demand... sales were "inflated" because anyone who wanted an entry-level Jeep or general-purpose workhorse had no other choice. Relative to the Grand Cherokee, the Liberty was the "entry level". Now that they are given a choice, they are selecting the Patriot and Compass.
 
#7 ·
All valid points.. And yeah the Commander is toast but at 13MPG average what can you expect. Shoot the only sales the Commander had were from people that were potentially going to buy the Grand Cherokee!

The Liberty and GC are nearly identical, with the GC still being a bit wider and more upscale but they both return around 15MPG AVE. The new liberty, without any major powertrain changes, should return similar figures

I heart the Patriot.
 
#8 ·
Jeep is doing just fine. Grand Cherokee and Commander sales are one in the same. Just like Wrangler and Unlimited and Compass and Patriot. One month one might due better than the other. Multible Jeep models sharing one platform is giving the consumer more choice.
Jeep really only has four platforms now with seven models. I think their overall market share is up and what the new buyers of Chrysler really wanted just like when Chrysler bought AMC.
The brand is worth a ton!
 
#24 · (Edited)
The more I think about it, the more I believe the GC should go and they Commander should take it's spot in the line-up. They could change things to get it slightly better mpg.

I believe that the drop in Liberty sales is a direct result of the interest in the Compass and Patriot.
I also think the release of the 2008 Liberty is affecting sales. People might just be waiting for the re-designed Liberty.

The Wrangler unlimited is a cool vehicle for sure, but it's tank-like chassis ensures that it'll never get very good MPG, and it does not have the cargo utility that a GC does (or patriot, IMHO)
Actually, the WU has more cargo capacity than the Patriot and GC when the back seats are folded down on all 3 models. The Wrangler also has more when you consider what you can fit in it with the top off.
 
#12 ·
Yeah the size differences between the Liberty and the MK's is only in roof height so why wouldn't you opt for the vehicle that is cheaper and better on the gasoline [both items leading to lower ownership costs]
 
#13 ·
I think the Commander is going to the Durango platform, and become a true seven passenger vehicle--something I think Jeep needs. Also, I think the GC will inherit a 3rd row seat--similar to what the Commander currently has. The new Liberty will fill the void of the current GC, with the Compass/Patriot filling the entry level spot.

The Trailhawk is the question mark. Would Jeep put a newly designed vehical on the road today with two live axles? Hmmm.
 
#14 ·
While improved gas mileage is on most people's minds, it is not the only consideration when I buy a vehicle. I drive nearly 500 miles to and from work every week. I want something I KNOW is dependable and will get me to work when I leave at 3 AM every morning in blizzards, thunderstorms, or whatever happens to be facing me.

While I'm not a fan of the current Liberty, the next gen has possibilities. My wife and I are going to wait and test drive both the Patriot and the Liberty before making our final decision. Everything being equal, it will probably be the Liberty, but the test drives will be the deciding factor.

BTW, my XJ just turned a quarter of a million miles yesterday morning!
 
#22 ·
While I'm not a fan of the current Liberty, the next gen has possibilities. My wife and I are going to wait and test drive both the Patriot and the Liberty before making our final decision. Everything being equal, it will probably be the Liberty, but the test drives will be the deciding factor.
I'm with you there...I'm really liking what I see in the new Libby. If it weren't for the appalling gas mileage, I would strongly consider sucking up the price difference and getting one. It would satisfy my extreme desire for a Jeep and Hubby's desire for something that can tow.

I'll be ordering my Pat at the end of this year, for an early '08 delivery. Can't wait for it, and hope that when it comes time to upgrade, Jeep has fixed all of their lineup to get much better gas mileage.
 
#15 ·
hmmmm..... diesel?!? Every single vehicle that Jeep makes could use one. They would fly off the lots!

Jeep needs to be the 1st company to offer every make in their line with a diesel.

Did I ever mention that I am a fan of the new cleaner-burning, more powerful diesel engines?!?!
 
#16 ·
I think that the new releases from jeep (liberty before, then compass and now patriot and new wrangler/wrangler unlimited) are just so damn hot when they roll out that everyone who wants one sells their first born if they have to to get one. Hell I couldn't wait for the patriot to be released! Look at the growth in the wrangler (and patriot) as they have been recently released, check them in a couple years and sales won't be as hot. Same thing happened to liberty, it came out, everyone was like "wow check that sh*t out!!" and it sold like hot cakes, now, everyone's got one. There isn't a steady enough flow of 16 year olds to keep up a steady flow of new buyers. Everyone that wanted one wanted it NOW, and they got it. Just a cycle, it'll all come back around
 
#17 · (Edited)
I guess jeep was trying to appeal to everyone. The Commander to the Chevy Tahoo/Ford Expedition Group/Hummer H2 group. The Grand Cherokee (GC) towards luxury SUV owners. The MK's against small "Cute Utes," buyers. The liberty & wrangler against the xterra's, FJ's, 4runners, etc.

The rise in fuel prices harmed Commander sales. The GC is getting long in the tooth, and again, fuel prices hurt sales. The MK's are doing well, stealing liberty sales. This leaves the liberty & Commander in no man's land.

Chryslar management, I hate to say, are complete idiots. They have to get rid of Tom LaSorda. The jeep line up should include the MK's (base models geared towards women & the "soft roaders" who need utility in a daily driver), The Jeep Wrangler, and the Grand Cherokee. The Commander & Liberty (nitro) are not needed.

The MK's are nice little SUV's with great fuel economy, safety features, and are fun to drive. They are great entry jeep models. They should have pushed their two mode hybrid & diesel technology in the GC. They would have plenty of sales since fuel economy is at a premium. And, as you know, the Wrangler will always have strong sales & a strong following no matter the circumstance. This lineup is something Chryslar would have been proud of, and would have generated plenty of sales.
 
#18 ·
The rise in fuel prices harmed Commander sales. The GC is getting long in the tooth, and again, fuel prices hurt sales. The MK's are doing well, stealing liberty sales. This leaves the liberty & Commander in no man's land.

Chryslar management, I hate to say, are complete idiots. They have to get rid of Tom LaSorda. The jeep line up should include the MK's (base models geared towards women & the "soft roaders" who need utility in a daily driver), The Jeep Wrangler, and the Grand Cherokee. The Commander & Liberty (nitro) are not needed.
Tweak the styling on the GC and I would heartily agree with your assessment.
 
#19 ·
The Commander is being dropped. I'm not sure when, maybe the 08 model year is the last?

The present Liberty is probably being hurt in several ways... losing some sales to Patriot, some (maybe a lot) to the new 4-door Wrangler, maybe to some other smaller SUVs with better gas mileage, and others waiting for the new Liberty in 08.

I'm not sure how the new Liberty will do. It looks like they're changing what made it successful in the first place (the "cute" styling) and basing the new model on the Nitro, which some Chrysler execs in a leaked memo termed a failure.

The Compass probably doesn't need huge sales numbers to be successful, being built in the same plant as the Patriot and Caliber.
 
#20 ·
I have a first-gen Grand Cherokee which will hopefully be replaced by a Patriot Soon. Just got word that my sister's fiancee might be jumping ship for J Walter Thompson and Ford to the company that handles Chrysler's marketing for New England. In particular working on the New England Jeep dealers account which means he gets an SRT 8 GC and I get a great deal on a Patriot. but back to my point, I agree with everyone that has said that Jeep's lineup overlaps way too much. I park my GC next to a Liberty and the thing towers above my Jeep, even the Patriot seems very similar in size. They should have when redesigning the GC done something like GM and Ford now. Offer the Grand Cherokee, and a stretch version like the Tahoe/Suburban and Yukon/Yukon XL and Expedition/Expedition EL. That way its larger than the Liberty and there is no Commander.
 
#21 ·
Oh, and for the love of everything holy put a 3rd row in the Grand Cherokee. They're losing so many sales because people think they need a 3rd row, and if you really wanted to get me excited offer a Sport trac-ish SUT variation of the Grand Cherokee, just to test the waters for a Wrangler-based truck. But yeah hopefully ordering a Patriot in August
 
#23 ·
From my perspective, I don't really see the Patriot/Compass platform cannibalizing other Jeeps. I would not have considered any other Jeep due to fuel economy.

Dumping the Commander is probably a good move, although I drove one once and really liked it.

I'd definitely give the new Liberty a chance. Yeah, it overlaps the GC market to some extent so time will tell if Jeep has a good balance.

The Wrangler unlimited is a cool vehicle for sure, but it's tank-like chassis ensures that it'll never get very good MPG, and it does not have the cargo utility that a GC does (or patriot, IMHO)