Jeep is seemingly unstoppable. And it’s pulling FCA right along behind it, to ever greater market share, along with Ram, the hottest truck brand (+7.3% in 2018). A total of 973,227 Jeeps were sold in the US in 2018.
Where all all those bloggers and commenters who some years back perpetually said that FCA was going to either die or be cut up and sold off? Lee Iaccoca saw the value, and bought AMC/Jeep back in 1987 for $1.5 billion. Some said that was way too much for AMC, but Lee knew the kinds of profit margins Jeep generated. As did Sergio Marchionne, when he finagled the auto deal of the century, picking up Chrysler (and Jeep) for essentially nothing.
Can anything stop Jeep from becoming a global powerhouse?
What’s a bit remarkable is that the Wrangler, the true Jeep, was also the best selling one in 2018, with 240,032 sold.
The refreshed Cherokee saw its sales refresh too, with a whopping 41% increase and 239, 437 units sold, just right behind the Wrangler. But the Cherokee apparently stole sales from the Grand Cherokee, which was down 7% for the year, but still sold a very healthy 224,908 units. The little Renagade was also down some too, some 6% for the year, to 97, 062.
But the Compass was the really big winner; it doubled its sales in 2019, to 171,167. I can’t say I’ve ever consciously seen one in Eugene. This is Subaru country.
And the new Gladiator comes on line this year. That should easily propel jeep over the one million mark.
The history of underestimating Jeep’s potential goes back a long way. When AMC bought Jeep in 1970 – a move pushed by AMC CEO Roy D. Chapin, Jr. – the purchase was dubbed “Chapin’s folly.” By 1977, Jeep was basically keeping the company afloat.
The popularity of the Wrangler is amazing. The four-door version enables it to better function as a family vehicle, which has boosted sales. A fair number of them are parked in the driveways of upscale suburban neighborhoods around here.
I’ve heard claims that the Wrangler has no demographic. It sells well to all income levels, all age groups, singles, married, families, men, women… One of the very few, perhaps the only vehicle that can claim something like that.
That’s nice for Jeep. Meanwhile, what’s left of the original Chrysler Motors – Chrysler and Dodge brands – have withered away like an unused appendage.
Except that they continue to own minivan and large sedan markets.
I didn’t truly appreciate how omnipresent the older body GC/T&C was until we started shopping minivans and started to pay attention to them on the road. Absolutely freaking everywhere. Several coworkers, the lady doing my F&I paperwork at the dealership when we bought our own Town and Country, the Meijer parking lot is full of them, etc, etc. I see a decent amount of Pacificas I suppose, but it seems their higher pricetag (and only being out for 2 years so far) is keeping them out of a bulk of the Midwestern value-buyer’s reach.
I know, right? I am convinced that once you buy something you start seeing more of them whatever it is. But with something as popular as the Chrysler toaster minivan, it could probably get overwhelming.
Owning the minivan market is a double edged sword, at best. Kind of like being the best selling hemorrhoid creme. Yeah, you are number one, but nobody really likes to admit to using your product. The same seems to be happening to sedans….
You’re right in the sense that there is exactly zero Chrysler minivan advertising out there aside from the initial Pacifica push with Jim Gafigan playing an oafish dad. But the factory in Canada stays humming along and as long as FCA makes money on the old body style, why not?
the initial Pacifica push with Jim Gafigan playing an oafish dad.
Chrysler seems to have problems with it’s commercials, outside of Jeep and Ram. The Dart ad probably had the worst messaging “keep your hands of my Dart”. What were they thinking, telling people to stay away from Darts?
There are still Pacifica ads on the tube. This time with a somewhat sleazy looking “mom”.
I see ads on the Canadian station that we get for the old Grand Caravan, none for the Pacifica. On the other hand, I only see ads in Detroit for the Pacifica.
You’re right Steve those commercials aren’t the best. But they are 10x better than Chevy’s real people ads.
That’s fascinating Le Baron, I’ve heard from a number of people that Canadians absolutely love the old GC as a maximum-value family hauler, it’s cool that they advertise it over there. Similarly, even without the advertising there’s a big chunk of the non-coastal US that appreciates the bang for the buck. My brother’s friend owns a shop in rural Upstate/Western NY (South Main Auto on youtube) and he has a ton of customers as well as family that drive these things.
One of the Dart’s problems was also that, when it debuted and FCA began advertising it, the only transmission available was the manual. That killed a lot of the initial demand right there.
All SUV-CUV lineup is where it’s at right now. Combine that with Jeep image and their tasteful interiors and their success makes sense.
I am a bit surprised they can parse the CUV range so thinly between the Compass and Cherokee yet have both of them sell so strongly.
The Grand Cherokee is still an impressive offering for anyone not wanting a long term relationship. It looks classy and somewhat expensive, and the interior and driving experience will win a lot of fans on the test drive.
The Wrangler has an image cachet that nothing can match. I sat in a new one, all fifty-two thousand dollars of it, and all I can say is you pay an awful lot for that image if all you do is drive on pavement.
The Wrangler in the top pic is a virtual copy of the one that our “son” (my son’s friend that has adopted my wife and I) got last summer. I’m not surprised by its increase since it was so highly anticipated and highly improved over the outgoing model. The Cherokee and Renegade increases on the other hand are surprising, yes CUV sales are increasing but those numbers are impressive. I think some of that may be due to the Wrangler getting more people in the door and then deciding that those CUVs would be easier to live with on a daily basis and a better fit for their budget, both payment and fuel economy wise.
I do think that the Gladiator will eat into Wrangler sales and may not give them a significant number of incremental sales.
As far as those who said Chrysler will be broken up and sold fact is Daimler tried to do that. They originally tried to sell everything but Jeep and all that prompted was people to ask “if you want to sell that Jeep”. It wasn’t until Jeep was included that anyone was interested. So no a break up was never going to happen since the value of Jeep was greater than the total value of the company.
“fact is Daimler tried to do that”
And Cerberus (which followed Daimler) was probably going to make it happen until the 2008-09 auto recession sent them into bankruptcy. I have been amazed watching Chrysler’s comeback. Even if we add Kaiser Jeep’s share, Chrysler is the only US company with a market share at or over what it had in 1962. Which is mind boggling.
Chrysler is the only US company with a market share at or over what it had in 1962. Which is mind boggling.
Paul posted this graph a while back.
I wonder what happened at Ford in ’62? We know how…challenging…that year’s Mopars were but there’s a corresponding drop in Ford and spike (to over 50%!) in GM sales.
The big Ford of 1960-64 (which was every manufacturer’s bread and butter line then) was not all that well received by the market. And the big Mercury went into a near fatal collapse. I was surprised in some research I have done over the years at how far below they dropped below the standard Chevrolet line. And remember that at GM Pontiac, Oldsmobile and Buick were hitting on all cylinders in those years.
I can understand the decline of the full-size Mercury during that era – it does not seem like a “step up” from a Ford. If anything, the Ford is better-looking.
After 1960, I find the full-size Fords to be very attractive. It would be interesting to track the sales mix of the full-size Fords from 1960 through 1964. I can see the Falcon, and then the intermediate Fairlane, attracting customers who would have bought one of the low-line full-size Fords.
But that still wouldn’t fully explain the entire division falling so far behind Chevrolet. In 1959, Ford Division almost outsold Chevrolet, but by 1963, Chevrolet was outselling the entire Ford Motor Company!
I wonder how many full-size Ford sales were stolen by a resurgent Pontiac?
Big Fords of 1960-63 sold roughly 911k, 774k, 516k & 790k units. The entire passenger car line (not trucks or thunderbirds) in those years was roughly 1.3M, 1.2M, 1.2M, 1.5M (rough rounding). Ford’s entire 1963 car line was higher than that of 1959 (excluding Thunderbirds again) by barely 100K units, but now divided among three separate lines instead of a single one.
Meanwhile, Chevrolet passenger car volume exploded in that time (1.6M to 2.2M), not to mention the BOP lines which were each probably up 25% (or closer to 40% for Pontiac).
Mercury was relatively steady too, so it appears that Ford was treading water to maintain sales volume in a rapidly growing market (fed mainly by GM’s growth), thus the share reduction. These figures come from theclassicford.com and Wiki’s US Auto Production page.
The BOP divisions likely benefitted from seriously diminished competition in the medium-price market.
Mercury was a restyled Ford, DeSoto was gone, and Dodge was basically a low-price brand by 1962.
Chrysler remained to do battle, but between the offbeat styling and quality concerns, it wasn’t much of a threat.
The Grand Cherokee’s design dates back to 2011 and it’s not suppose to be changed until around 2021. I like how FCA improves and refines even the older products to the point I feel like they have all the kinks worked out. It will be interesting how the Grand Cherokee does in the next few years. I find the styling to be almost as timeless as the Wrangler’s, and in this segment, percieved ruggedness outweighs the latest modern and flashy styling (Lexus, Range Rover) which is why Jeep is able to continue with very little product change because they are the original off roader. I would easily take a Grand Cherokee Trackhawk over a similarly priced Range Rover anyday. Jeeps are like the Yeti coolers of SUVs.
My sister has spent a lot of time in Jeeps, from a 1993 XJ Cherokee to a 2005-ish turbodiesel Liberty and on to Wrangler Unlimiteds from the prior and current new generation. The times she did not choose a Jeep were when she was looking for something more car-like (VW being the main choice) or something bigger (Tahoe and Suburban in the growing family years).
I am amazed at how well Jeep has navigated the modern market. I have seen several reports of reliability/durability that have been sub-par but other fans who claim that they are fabulous. Would ex-Jeep owners be a huge demographic too? It seems that Jeep (and Chrysler) may have one of the better managements of the last 60 years. If they could get quality up to Japanese levels they could be unstoppable.
I had several turns behind the wheel of Sis’s last Wrangler Unlimited, a 6 speed Rubicon. It was this odd combination of refinement and crudeness and I could see how a person could choose one as primary transportation (unlike in the old days).
If they could get quality up to Japanese levels they could be unstoppable.
FCA ranks dead last in dealership experience too. I can see the discussions in Auburn Hills now “we could do better if we tightened up reliability and customer service” and the response “we can’t build enough product to meet demand now”.
I think dealer experience can vary dramatically by brand and market (with Lexus likely being one exception, as I gather they are all very consistently good).
In my experience, the Jeep dealers have been quite good–friendly, helpful sales people who aren’t too pushy, easy service scheduling, clean loaners–pretty much on par with most of the BMW dealer experiences we’ve have. No complaints, though I’m not really looking for “entertainment” or “obsequious courtesy” or a “relationship,” I just want my car needs handled properly.
In contrast for both me and my family, many of our experiences with Honda dealers have been pretty bad–in a variety of different markets (New York, California, Louisiana). Like Jeep, Honda is another example of a brand where customers will overlook dealer issues because they really want the product–which was especially true in the 1980s, when I think many (most) Honda dealers were preposterously arrogant with a commensurate level of non-service.
…many of our experiences with Honda dealers have been pretty bad–in a variety of different markets
I looked up the 2018 J D Power dealer experience rankings. On a 10 point scale, Honda earned a 4. Acura 3, Chrysler 2. Ram, Jeep, Dodge and Fiat all earned a 1 The best dealer experience included Buick, Chevy and GMC all with 10s. VW, which used to have a vile rating, earned a 7, tied with Toyota.
Ha! Guess that explains the Honda dealer situations we experienced. My family and I would have given our Honda dealers all “zero,” so somewhere people must be getting “9” and “10” level service for the average to work out…. For the record, I’d give my Jeep store an “8” or a “9”, so there must be LOTS of low ratings to average to “1,” which is definitely not good.
It’s interesting to me that Chrysler earned a “2” while Ram, Jeep and Dodge–all handled in the same dealerships–were given a “1.”
Did Cadillac earn a “10”? It would be ironic if the other GM divisions did, while the flagship brand did not…
I also agree these rankings help prove your point that high demand products don’t necessarily require the “best” dealer experiences in order to achieve retail success. VW has been struggling in this market for a while, so they probably had to shore up their dealer body out of desperation. Likewise the GM stores, where they are having to work harder given the beatings those brands have taken.
Did Cadillac earn a “10”? It would be ironic if the other GM divisions did, while the flagship brand did not…
Cadillac, in spite of the division’s efforts to fancy up the dealers the last few years, scored an 8, tied with Lexus.
Here is the full J D Power list.
https://www.jdpower.com/Cars/Ratings/Dealership-Experience
Interesting. Makes me wonder what on earth Buick, Chevy and GMC did to earn “10” ratings, ahead of Lexus (and Cadillac). Almost seems impossible, especially for a volume brand like Chevy.
Jeep is probably the best branded and best marketed mass-market nameplate in North America. And that’s really been the case for decades, no matter who’s been the steward.
To FCA being split up and sold, I’d factor Sergio Marchionne’s passing into that equation.
True, the talk seems to have died down but then again, I, at least, never thought a sale would’ve been the result of falling Jeep/Ram sales, but rather because of the other divisions dragging Jeep and Ram down in North America.
Maybe Dodge and Chrysler ARE being successfully recast as niche divisions that do what they do…and that’s all that’s expected of them and they’ll perform to corporate expectations.
But I think the jury’s still out on Alfa-Romeo and Fiat.
And then there’s the whole electrification thing. Where’s FCA in that evolution?
I think there’s plenty of reason to believe the tipping point from petroleum to electric will come more quickly than anyone imagines. Unless the issues of range and recharging at a reasonable cost turn out to be the automotive equivalent of figuring out nuclear fusion.
And although it’ll probably be sold as “saving the planet,” when you think about what goes into an electric vehicle vs. an ICE vehicle, the REAL driving force will be economics as costs to design, build, service, maintain BEVs come down.
(I’d love to see NASCAR embrace electric motors in at least one series. Turn Roush, Hendrick, Gibbs, etc., loose on those battery issues and see how fast they’ll be fixed!)
So color me unsure – still – about FCA’s long-term future.
But Jeep’s future is simply not in question, and I don’t think ever has been.
I have questions about FCA as well, but look at it differently.
FCA in the USA is Jeep. Ram may be doing better, but until someone knocks th F150 off it’s perch, it is simply an Anti-F150 for someone who wants something different. It is a good truck, but pickups are only popular here.
Interesting take on Alfa Romeo and Fiat, but I disagree a bit. Alfa Romeo is slowly growing, and the Stelvio looks to be a good seller, and a good stepping stone to get someone into a Maserati Levante eventually. If Fiat would bring their entire line over, perhaps it would give the US something to look at other than the 500 in 7 flavors and a reworked Miata. The Renegade and the 500X are mechanical twins, but the Jeep gets all the sales.
Chrysler and Dodge either need to be fully funded and reborn, or kill them off. The lack of product, at least as a full line, means that in the near future they will either be based on recycled European (Fiat or AR) architecture or not built at all. Pacifica and 300 from Chrysler and Challenger and Charger from Dodge is a poor lineup, and not really promising for further growth.
When we go EV, I really think that there will be little to no differences in the drivetrain, so the OEMs will really become style houses. The packaging, not the guts, will be what they create. Watch them all collaborate on the mechanicals to share costs.
But here’s the thing: Unlike GM which has to keep product in Cadillac, Buick/GMC and Chevrolet dealer channels, FCA has a single dealer channel for everything besides Fiat. They are in a perfect position to do what everyone said ten years ago that GM ought to do, which is to only build the brand/model combinations that make sense rather than that 60’s-90s GM philosophy of 4 or 5 versions of every vehicle for no reason other than to keep dealers in product.
I hope that they keep the Chrysler 300 line as I think there is a place for a big sedan that is a little more sedate and grown up than the Charger. But with Ram and Jeep providing most of the volume FCA can concentrate on what sells in numbers that justify development costs and ignore the rest.
As for Fiat, small cars are poison in the US market at the moment. The 500 was brought here initially only to satisfy political requirements of a small, high MPG car for FCA to sell. I hope they stay and prosper, and the fact that they have a separate dealer network suggests that FCA may try to broaden the line, but I don’t see Fiat doing much heavy lifting in the US for the foreseeable future.
Actually I think FCA’s approach of offering a portfolio of “niche” brands is an interesting one. The combined Chrysler, Jeep, Dodge Ram dealership give a nice array of “American-style” choices. Sure, Jeep is the volume cornerstone, but it definitely has “flavor” and is not trying to be everything to everybody. The Ram doesn’t need to be number one, it just needs to have strong volume and satisfied customers, which it is definitely achieving. Chrysler and Dodge can exist in shared showrooms as “specialty” offerings: minivan (Pacifica), traditional luxury sedan (300), modern muscle cars (Challenger/Charger). Why dump these brands when they provide good incremental volume and satisfy underserved segments that have been somewhat neglected by the competition?
The Italian side of the house is more challenging. Fiat seems to be in deep trouble, but at least FCA does have the Italian sport/luxury niche well covered with Alfa and Maserati. Both brands sell at modest levels to luxury buyers seeking something “different,” but taken together those volumes are decent enough for them to be in the hunt relative to specialty niche brands like Porsche. Also, Alfa Romeos in the right trim are an absolute blast to drive–both the Guilia and Stelvio Quadrafoglio models are some of the best performers/handlers currently on the market. Definitely niche and maybe nuts from a quality/reliability standpoint, but at least they inspire passion.
How many other automakers besides FCA can boast such a comprehensive line-up of models with very recognizable brand personalities that target specific buyer groups? I agree the future will be more about styling and brand expression, as powertrains and technologies converge and become commonized, ironically leaving FCA in a relatively good position since they already have so many distinctive products.
I agree fully with GN and JP here. The Chrysler-Dodge-Jeep dealership allows FCA to make Chrysler and Dodge very focussed brands, with no need to go to the effort and expense of trying to make both full-line brands which will just overlap with each other. To that effect, the 300 will probably go eventually although it’s holding on for dear life and sells decently for a full-size sedan.
Chrysler is apparently getting a couple of crossovers though but I imagine they’ll be distinguished from Jeep (e.g. one will be based on the Chinese Grand Commander and have 7 seats, while it seems Jeep’s cheapest US 7-seater will be the body-on-frame Wagoneer)
I agree with you and JPC, at least in principle.
FCA is a full line made of many brands. When you add in Fiat, Dodge, Chrysler, Jeep, and Ram, you basically have everything “basic” covered. The other 2 Italians, Alfa and Maserati, compete for a different set of buyers and deserve a separate studio experience, but Fiat, with just a few models, was set up with separate studios at great expense. If they merged the Fiat line to be sold along with the other brands, in the same dealership, it would give that brand a needed boost. Plus, adding a bunch of service departments that can service a Fiat would alleviate a lot of worries about getting them fixed. With this model, you would have something equivalent to a department store for cars. Different “departments” with limited models but covering a specific niche and demographic,
The other elephant in the room is whether the current Chrysler or Dodge cars will be renewed. I understand that the going forward model is to recycle old Alfa platforms for the new Chrysler and Dodge sedans, much like Renault and Daimler did. While it works, it does not really bode well for the brands.
In the end, I hope it all works. I really like FCA and wish it well. And hell, I drive a 500!
If Fiat would bring their entire line over, perhaps it would give the US something to look at other than the 500 in 7 flavors and a reworked Miata.
Actually, we are getting the bulk of the European Fiat line. The Punto was discontinued last year. The Panda urban skateboard is a 500 without the cheeky looks. The Tipo is a C segment passenger car, which US manufacturers are running away from, with sketchy Turkish build quality.
Marchionne said he was cutting the European Fiat line down to the 500 family. Besides the 500, the 500L has been the best selling small MPV in Europe, and the 500X outsells the Renegade.
Well, they can always bring over the Lancia.
Just kidding.
As a long-time Toyota 4WD owner, with a bumper sticker from a Land Cruiser shop on my toolbox that reads “Friends Don’t Let Friends Drive Jeeps”, I gotta say this: Jeep does the best job of any mainstream auto manufacturer of blending marketing and engineering/features for the enthusiast off reader or wannabe off-roader.
I would almost certainly buy a Subaru before getting a Cherokee let alone a Compass, for reliability (maybe perceived) and refinement, but even the CUV Jeeps offer offroad features like low range gearing, tow hooks, offroad modes etc that eclipse their competitors. Do most people need them, or even use them? Probably not … but it furthers the Jeep image. And the more rugged vehicles like the Wrangler and Galdiator, as well as the Ram Power Wagon have ultra-low gearing, swaybar disconnects, and driver information for steering angle and multi-view camera displays to show obstacle clearance, that are truly useful for the off-roader and could easily be included in trucks like the TRD Pro Toyota’s, but aren’t. Kudos to Jeep for doing that even if it’s as much for the image as the function.
Add in the way they offer multiple flavors/versions of the Wrangler from suburban housewife to offroader. My sister and her husband chose the Rubicon (the Jeep all other Jeep owners respect) with the idea that they could press it into farm truck duty in its old age. It is certainly more vehicle than she needs to commute to and from work, but it does that job amazingly well too.
The funny thing is that she bought a new Subaru Outback about 1.5-2 years before buying the Jeep. She kept experiencing odd electrical issues that the dealer could never run down and which were starting to look unfixable (like every dash light coming on and staying on until they decided to stop). She had no such problem with her first Unlimited. I have not heard any reports either way with the new one. So it remains true that both bad and good cars can come from anyone.
I’m the same way dman, my natural inclination as a 4WD Toyota guy is to scoff at all their ridiculous “Trailhawk” editions with the red tow hooks, but I gotta respect them for offering the most capable vehicles in that CUV class. I walked past a new Compass Trailhawk in the parking lot and caught myself thinking “that doesn’t look half bad!” Lots of clearance, excellent approach and departure angles, reminds me of a gen 1 Rav4 (with less glass and probably worse reliability).
I didn’t like Marchionne’s near abandonment of passenger cars and going all Jeep, all the time, but I have to concede it’s working for them.
The Renegade and Compass are actually old enough now for me to be able to get into them at the show last week without fighting a huge mob.
Compass sales in Europe are robust enough that FCA is considering production at an underutilized Fiat plant in Italy, so more of Toluca’s production would be available for the North American market. The Compass must be closing in on being the most widely produced car, with them adding Italy to production in Mexico, Brazil, India and China.
Mike Manley has been saying that FCA has new products ready to go, but they don’t have enough production capacity.
A year ago, FCA budgeted $1B to renovate Warren Truck to produce the Wagoneer, but Warren Truck is still cranking out Rams.
Talked with a guy the other day who works at SHAP, building the new Ram. He’s working 12 hour days with no end in sight. When I was heading home from an event at the Packard Proving Grounds last fall, I ran into a traffic jam. Wondered what was causing all the traffic, then remembered I was driving on Van Dyke. I was driving past SHAP, apparently right at the end of the shift, on a Sunday.
There was no Christmas shut down at Jefferson North, again. Marchionne cried for years there were more markets he wanted to introduce the Grand Cherokee to, but he couldn’t get enough of them out of Jefferson North.
Local media was atwitter in early December about a report that FCA was going to convert the idled Mack Ave II engine plant into a second assembly line for Grand Cherokees, particularly a 3 row version. I doubted that as Mack II is only about 600,000 sqft, way too small. Then the reports of a new inline 6 started appearing. Reportedly, the inline 6 would be built in Trenton and Dundee, replacing the Pentastar V6; Dropping the Pentastar would free up Mack I. Mack I is 1.4M sqft, so combining the two engine plants would bring space available close to what an assembly plant needs (Jefferson North is 3M).
This slide from last June’s “five year plan” shows the “white space” segments where FCA currently does not have a product. I figure the “E segment 3 row” is the three row Grand Cherokee. The “low D segment 3 row” Jeep is probably a stretched Compass as Fiat Latin America has a pickup on the Compass platform and has a similar “low D 3 row” in development. The B segment Jeep and Fiat CUVs are probably the “baby Jeep” that has been drawing some speculation.
Here’s the product matrix showing Jeep line changes by 2022.
An A-segment Jeep, and a 3-row between the Grand Cherokee and (Grand) Wagoneer? Interesting…
I don’t wanna assume too much, but it seems like the next-gen Cherokee could be a hair larger, fully in the midsize CUV category, so there’s not so much overlap between it and the Compass.
An A-segment Jeep, and a 3-row between the Grand Cherokee and (Grand) Wagoneer? Interesting…
The present Dodge Durango is effectively a 3 row Grand Cherokee. They are on the same platform and are both build at Jefferson North. With the development of an E segment 3 row badged as a Jeep, I expect the Durango to go away just as the Caliber and Nitro have vanished.
I also expect the Grand Commander, effectively a 3 row non-Grand Cherokee, to replace the Journey.
The A-segment Jeep can be theirs for a few styling fillips and the cost of federalization, since the Fiat Panda 4×4 already exists.
Grand Wagoneer? Bring it on. And design it to look like they did in the 1970s. I think if done right, it will launch them in the stratosphere of executive SUVs.
Like we’ve both speculated, it would be great if the UAW could convince GM to lease Hamtramck to FCA. That would solve a couple of problems for both companies, and rather quickly, too…
Like we’ve both speculated, it would be great if the UAW could convince GM to lease Hamtramck to FCA.
Or sell Poletown to FCA for $1. Part of the footprint of that plant was the site of Dodge Main, so that has to be one of the brownest of brownfields. Getting out from under the cleanup costs for the site must be worth something to GM. The Huppmobile plant was in the southeast corner of Poletown’s footprint too.
Here’s a snip from Google showing Jefferson North, Mack I and Mack II, to give an idea how cramped that site is. If they combined Mack I and Mack II and added a bit of new construction to get the complex into the 3Msqft range, there wouldn’t be any room on that block for employee parking or new car storage. If they cut off the section of Mack between the two plants, the railroad spur around the west side of JN would still be in the way and they can’t eliminate that spur because other businesses use it.
It’s no secret here at CC that I’m a big Jeep fan and happy Jeep owner. I think one of the huge parts of the brand’s success is that it’s very consistent in its positioning and therefore has a very strong image. The styling continuity makes the products easily recognizable, and each and every product series has an option to be Trail Rated. So even if you don’t want/never use off-road capability, you still get that vibe, which is very compelling for a lot of people.
Due to the strong and aspirational brand personality, Jeep is sometimes able to “get a pass” when it comes to quality metrics, which can trail other brands like Toyota. However, I have owned 2 FCA-era Grand Cherokees and have had remarkably few issues–far fewer problems than we’ve had on our “Cyberdyne-era” BMWs. Speaking of that, during this insane polar vortex here in Chicago, my wife’s BMW 535xDrive is partially inoperable–the main center stack screen is unresponsive and the car won’t lock, while my Grand Cherokee behaves like it was springtime. So at least in my case, some of the rugged “go anywhere, do anything” brand positioning is actually accurate.
Not surprised that Grand Cherokee sales are softening–the product is at the end of a long lifecycle at this point, having appeared for 2011. I’m looking forward to seeing the next generation GC, which should arrive fairly soon–could be my next new car… as I’d definitely buy another.
My SO makes noise occasionally about getting a new (or newer) car, the Compass is the one that appeals to her the most. I’ve tried to interest her in the Renegade and the Cherokee, but so far, not happening.
I thought it insanity (along with other folks) when FCA introduced the Compass between the Renegade and Cherokee, but they seem to have their targets carefully chosen…
the Compass is the one that appeals to her the most. I’ve tried to interest her in the Renegade and the Cherokee, but so far, not happening.
I checked out both the Renegade and Compass at the show last week. One of my biggest gripes about my Taurus X was it was so high off the ground I could not plant a foot on the ground when getting out. I had to turn sideways in the seat and slide off. To my delight, I found that both the Renegade and Compass are built low enough that I could plant a foot on the ground when getting out.
On the downside, both have pretty terrible rear quarter blindspots. As I posted elsewhere, I found the Fiat 500X to have a much less objectionable blind spot.
The Compass appears to be the last bastion of the 2.4 Tigershark. Most trims of the Renegade and all 500X trims are going to the 1.3T for 19 and the Cherokee offers both the 2.0T and V6, along with the Tigershark.
FCA promises that the 2019 9 speed auto is, really and truly, programmed correctly, finally, so that it is more responsive and shifts smoother.
I forgot this when I posted earlier, the 500X is another of her targets. And, oddly, the 500L, too. She does like Fiats, but she’s one of the few. Myself, if I was to choose from their current catalog, a lightly optioned 500 Abarth would make me happy…
I’d forgotten about Hupmobile building cars in Detroit. It’s somewhat shocking to see how all of those plants were crammed in all together back then. OTOH, probably very few workers drove their own cars there.
It’s somewhat shocking to see how all of those plants were crammed in all together back then.
Detroit must be the king of brownfields. Here is the same view of FCA Jefferson North, Mack I and Mack II, with the outlines of the plants that preceded them.
#1: the infamous Briggs/Packard body plant.
#2: Briggs Chrysler body plant.
#3: Hudson axle plant and service parts warehouse.
#4: Hudson assembly plant and offices,
$5: Continental engine plant. In the 40s-early 50s, this was Kaiser’s engine plant.
#6: Original Chrysler Jefferson plant, which was originally built by Chalmers before that company was folded into Chrysler.
And here is the GM plant that will be shuttered in June, with it’s predecessors.
Even the Jeep haters have to concede that whomever is running the show at the time have been absolutely masterful at exploiting the Jeep image. They haven’t made many mistakes (the most recent one that comes to mind is the Jeep Commander, a hoary vehicle that did nothing well).
But the Wrangler, an otherwise archaic, narrowly-focused niche vehicle with one of the worst build quality reputations in the industry, sells at astonishing levels (and without any kind of major incentives or rebates). It’s quite like a halo vehicle in that I suspect many buyers of the more refined Jeep models love that kinship to the much harder edged ‘go-anywhere’ lifestyle of the Wrangler.
I’ve said it before, but Jeep comes off very much like an American VW in being able to perpetuate enough of a lifestyle image that allows consumers to overlook the many flaws.
All Chrysler needs to do is bring back something like the 2-door Cordoba, with a hotter version for Alfa. They gave up too soon on the Dart. I’d like to see it back in production somehow. Giulia would be great if they took a sawzall to those silly shift paddles. The rotary gear selectors also need to go along with the electric parking brakes. A Hurst “H” pattern, bright red paint and Corinthian leather is what I’d like to see. Stand pat otherwise. GM and Ford are both in the midst of destroying themselves.
Never say never, but after my experience with my 2012 Grand Cherokee (base trim Laredo with only sunroof and factory trailering as options); it is highly unlikely I’ll ever, ever own anything from Chrysler Crap…err…Corp.
Just sayin’…
So far we’ve been extremely happy with our ‘15 Wrangler Sport. Mileage is up to 35k with zero things gone wrong. The dealer changes the oil without fuss or delay for cheap, the Jeep is fantastic around town, holds enough to go for Costco runs with the back seat folded, turns on a dime, is quick away from
a light, has no rattles, is the easiest to park vehicle I’ve ever owned and gets thumbs up everywhere we go. What’s not to like?
I too have a 15 Wrangler. It hasn’t done any off road duty but what others have failed to mention here is the convertible aspect. Mine loses the top and doors for the summer, and it is a blast.
Only quality issue has been a wonky usb attachment, which is exactly one more quality issue than my 6 Hondas combined.
We have the hardtop (no leaks!) but may look for a soft-top for summer duty this year. As far as the USB goes, I assume it works but haven’t ever tried it…it can’t fail if you don’t use it 🙂
There’s certainly a lot of buzz for the Gladiator, but I’m not convinced it will be a hit. Those rear doors alone reek of a cheap hack job. Specs look to be competitive though so we will see I guess.
Chrysler has a bad reputation but I’ve owned two vans and they have served us very well. They are/were rather unrefined, but I can’t complain about the reliability. I wouldn’t hesitate to buy another.
This post really highlights to me the importance of brand character and consistency in building sales in today’s market. Interesting to note how the two biggest gainers in the U.S. are brands with very clear design identities with the proven ability to deliver on the product promise. Tesla models all have a strong family resemblance inside and out, and all offer state-of-the-art new technology. Whether you love them or hate them, you can’t miss them, and most people are very clear on what Tesla stands for and delivers. Likewise, most people can easily spot a Jeep, and all models can be equipped to offer some degree of off-road prowess.
Then contrast that with muddled brands that are failing. For example, Cadillac (as Ed Snitkoff covered last week) seems totally lost. Is it the maker of giant, glitzy, over-priced Suburbans, semi-luxurious “soft roader” CUVs or fake German sport sedans? When the answer is “all of the above” then you know you are in trouble.
Contrast that with Australia, where Jeep sales actually slumped 11.4% overall last year. Jeep was riding high here until the exchange rate worsened. Still, our Compass is sourced from India and competitively priced but other Jeep products are lagging.
A big part of that is quality and reliability. At one point, the Grand Cherokee was selling as well as the Toyota LandCruiser Prado but then there was a barrage of recalls for the Jeep. Since then, GC sales have fallen off track even though, despite its age, it’s still a fresher-looking product inside and out than the Prado.
I’d like to see FCA work a little harder to improve their quality and reliability as I genuinely like the brand. They’ve doubled their market share and sales in just a couple of years in Europe, now selling over 100k units annually, and I’d hate to see any recalls or bad word-of-mouth reverse that progress.
From the conflicting owner stories above, it seems the Mopar Quality Lottery is still in full effect. Get a good one and they’re as good as anything, but they have way more than their share of lemons.
Another thing I like about Jeep, and it’s part of the Jeep thing: every other SUV commercial on the tube shows the things full of women, driving on clear, dry, paved, city streets.
Jeep commercials show the cars actually leaving pavement, intentionally. One of my favorite adverts doesn’t even show the car, but makes the point.
When the new Tiguan came out, the US commercials were typical US SUV fare: driving on clear, dry, paved, city streets, the “urban jungle”. Horrible ads.
This German market ad for the earlier gen Tiguan shows it going off road, intentionally, but the style of the ad would probably get VW sued in the US for being sexist.
I agree that “Snow Covered” commercial is clever. While obviously exaggerated, the ad makes a compelling and timeless point. Ironically, the scene is a bit reminiscent of Chicago this week (aka Chiberia), and as noted in my comment above, our Jeep worked perfectly in the polar vortex and has been easily handling some pretty treacherous conditions.
I never would have predicted 15 years ago that Jeep would be so hot today. Then again, I have never been very good at predicting automotive trends, so I don’t. I can see why Jeep has become so successful though. As other’s have mentioned, it has done an excellent job at building a strong well defined brand. And I think more than ever, this is hugely important in the automotive market place. Which is also why cars with week or poor brand images are failing in the market place. With more disposable income and low fuel costs, people seem to be far less pragmatic when it comes to vehicle purchases. As I have said before, a car is a persons biggest fashion item. Many people are very concerned about the image they present by the vehicle they drive. There are many people I know who would not be “caught dead” in certain brand cars, regardless of how good they are, simply because of the brand image.
I personally don’t see any appeal in any of the Jeep line-up. Maybe the Grand Cherokee would be something I might consider, if I ever had the reason to purchase a vehicle in that class, but I have other SUVs I’d favor over it. Other than that, the small Jeeps are far from stand outs for me. I drove a new Cherokee earlier this year and other than the straight line performance being stronger than expected (I flogged it quite hard), it was an entirely forgettable vehicle.
I still don’t understand what people find appealing about the Wrangler. I mean, I understand the rugged image they present, and the capability they offer, but I just don’t see any appeal of driving one daily. I am not trying to offend anyone who owns a Jeep, everyone has their own preferences, I just don’t see any appeal. For the same price and terrible fuel economy, I’d rather had a pickup that at least offers some comfort,real capability to work and haul. Most trucks have better reliability records too.
Interestingly, Jeeps seem to have an appeal crosses many different demographics and backgrounds. I have a colleague who he and his wife are staunch environmentalists and have only driven small economical cars. Yet for a while, they were strongly considering a Jeep (they are outdoorsy and thought it’d be good for camping trips), despite the horrible mileage. It just boggles my mind they’d cross shopped a Honda Fit and Jeep Wrangler! In some ways the Wrangler reminds me of the Thunderbird of the past, where it could easily be found in an average or upscale neighborhood.