Autopian: "Jeep Is In Trouble And Hopes Nostalgia Can Save It"

[chaosjake]

Here’s a pretty terrifying fact if you’re a marketer for Jeep: out of the top 33 car brands selling cars in the United States, Jeep’s sales growth is at the absolute bottom, meaning that there are 32 brands ahead of them (can you even name 32 car brands?). In a market where almost every brand is growing, Jeep has lost 12% of sales compared to 2022, which itself was a dismal year. This comes after four consecutive years of sales declines for Jeep...

It ain’t pretty. YTD the best performing vehicle is the Compass, which appears to be heavily incentivized (the brand is currently offering 15% off MSRP). Literally every other vehicle is declining year-over-year.

Part of the Autopian's review of the new "Dents" Grand Cherokee ad: https://www.theautopian.com/jeep-is-in-trouble-and-hopes-nostalgia-can-save-it/

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[Jefe1018]

Well… Jeeps are uncomfortable on the road, perceived as unreliable, over priced, (or expensive however you want to frame it) and pretty impractical compared to its competition for most people. Not at all surprising.

I’ll also say this, there are some statistics for the sake of statistics. Is there a correlation with how low Jeep ranked and other automakers going out of business? What is the source? Are people priced out? Are owners trading in and onto different brands? Not to mention… Is using nostalgia in its marketing really that different than idk… trying to sell Jeep’s ro GI’s coming home from the big war then building on that every single year for the next really however many years it has been since Hitler ate one (allegedly)?

 

[Rocksalt]

the article does include the slumping 2023 sales reports and does mention that Jeep sales overall are ranked 33rd...

 

[sharpsicle]

Here's why I hate these articles. They never tell the whole story in order to entice clicks. For example, here's Jeep's sales and growth over time :

It's not going straight up that I grant you, but it still looks like they're doing okay to me and don't require "saving". Add in the expected production drops that they and others have planned as they transition to electric and this becomes even less of a worry.

I mean heck, look at Ford, they look worse than Jeep! Do they need "saving" too?

If Jeep trends down for another 2-3 years and are pacing back to the 2012-ish numbers, that to me would hold more weight for that argument. But I just don't see it here, unless of course you're trying to overstate the situation to get more clicks...

 

[smlobx]

Jeep, for what ever reason, has been trying to brand itself as a luxury marque. In doing so it has increased its prices to what most people feel is ridiculous levels all the while not improving the basics of the vehicle. Meanwhile it’s competitors have been making great strides and it is now reflected in the sales numbers.

The other thing that became apparent to me is the mark up that Jeep is charging for its 4xE vehicles, something like $20K. As a comparison Toyota charges $1800 for is plug in hybrids..

Jeep has always been a main stream brand and in trying to break into the high net worth crowd it is finding out that many would prefer something like an X3 or X5 over a $70K Grand Cherokee…

 

[Koolcarguy]

Part of the Autopian's review of the new "Dents" Grand Cherokee ad: https://www.theautopian.com/jeep-is-in-trouble-and-hopes-nostalgia-can-save-it/

Fake news ??? very interesting......apparently Jeep buyers in my area haven't got the memo we sell lots of used Jeep's and theres Jeeps everywhere and my local Jeep dealers are always trying to buy used Jeeps and new Jeeps are still selling strong

 

[Readely]

Jeep, for what ever reason, has been trying to brand itself as a luxury marque. In doing so it has increased its prices to what most people feel is ridiculous levels all the while not improving the basics of the vehicle. Meanwhile it’s competitors have been making great strides and it is now reflected in the sales numbers.

The other thing that became apparent to me is the mark up that Jeep is charging for its 4xE vehicles, something like $20K. As a comparison Toyota charges $1800 for is plug in hybrids..

Jeep has always been a main stream brand and in trying to break into the high net worth crowd it is finding out that many would prefer something like an X3 or X5 over a $70K Grand Cherokee…

Totally agree.

 

[BearFootSam]

Jeep, for what ever reason, has been trying to brand itself as a luxury marque. In doing so it has increased its prices to what most people feel is ridiculous levels all the while not improving the basics of the vehicle. Meanwhile it’s competitors have been making great strides and it is now reflected in the sales numbers.

The other thing that became apparent to me is the mark up that Jeep is charging for its 4xE vehicles, something like $20K. As a comparison Toyota charges $1800 for is plug in hybrids..

Jeep has always been a main stream brand and in trying to break into the high net worth crowd it is finding out that many would prefer something like an X3 or X5 over a $70K Grand Cherokee…

Unfortunately for Jeep, their best foray into the HNW crowd is when some cat buys a $65k gladiator/wrangler then spends another $65k putting D60's and an "overlanding" setup on their "rig". Bada bing, the $130k jeep folks want. Because every schmuck at the club in Aspen has a chrome trim napa leather run about, but a real off road jeep espouses airs of the 'everyman'.

I'm joking of course but there is a kernel of truth in that the Jeep brand has equal appeal whether you are a hard luck redneck in a rusted out XJ or the aforementioned cred collector in a tricked out J#. In that sense the enduring appeal of the real jeep models is their transcendence of class lines and bank accounts. Not great for positioning a brand as up market but good for long term brand fealty.

 

[Alpine Warthog]

Jeep, for what ever reason, has been trying to brand itself as a luxury marque. In doing so it has increased its prices to what most people feel is ridiculous levels all the while not improving the basics of the vehicle. Meanwhile it’s competitors have been making great strides and it is now reflected in the sales numbers.

The other thing that became apparent to me is the mark up that Jeep is charging for its 4xE vehicles, something like $20K. As a comparison Toyota charges $1800 for is plug in hybrids..

Jeep has always been a main stream brand and in trying to break into the high net worth crowd it is finding out that many would prefer something like an X3 or X5 over a $70K Grand Cherokee…

As much as I love my Jeeps. I have to admit you've got a point. I really don't understand the resell value holding the way it does. Drove an X5 for a while and while it was plush and smooth and sleek and sexy, it got REALLY expensive to fix, and everything was breaking. The alternator, the struts, the radiator hoses (all 8 of them) it was a maintenance nightmare. Not to mention you HAD to run 91 Octane...
But hey, buying it new for same price as a Grand Cherokee is nice. The unfortunate owner of it when its 6 years old be damned...
But then again, us Jeep nerds keep shelling out the cash for them even when we know they aren't really worth the money. I paid $37,900 for my year old '21 JT sport with 18K miles. All the while knowing I could get a 4 door 2019 Ram 2500 gasser (with a plow) on the next lot over for $35K.

 

[PDXsarge]

Unfortunately for Jeep, their best foray into the HNW crowd is when some cat buys a $65k gladiator/wrangler then spends another $65k putting D60's and an "overlanding" setup on their "rig". Bada bing, the $130k jeep folks want. Because every schmuck at the club in Aspen has a chrome trim napa leather run about, but a real off road jeep espouses airs of the 'everyman'.

I'm joking of course but there is a kernel of truth in that the Jeep brand has equal appeal whether you are a hard luck redneck in a rusted out XJ or the aforementioned cred collector in a tricked out J#. In that sense the enduring appeal of the real jeep models is their transcendence of class lines and bank accounts. Not great for positioning a brand as up market but good for long term brand fealty.

Akin to all the Rolex riders on their Harleys back in the aughts...

 

[mumbo]

Fake news ??? very interesting......apparently Jeep buyers in my area haven't got the memo we sell lots of used Jeep's and theres Jeeps everywhere and my local Jeep dealers are always trying to buy used Jeeps and new Jeeps are still selling strong

I live in the Sierra's and the same is true here. I recently went to Carmel and was surprised by the number of 4xE's as well.

 

[Guns_N_Rosaries]

COVID car sales were a wild time. Dealers couldn't keep vehicles on the lot because people were so concerned that it was going to get worse and worse, so if you were thinking about getting a new car in the next couple of years, there is a good chance you just went for it then and there just in case, and people were paying above MSRP for them. Jeep saw that and probably thought, "Hey if people are willing to pay more than our current MSRP, then why are we not increasing our MSRP so we can make that money instead of our dealers?"

Then wild inflation hit, and while prices inflated, salaries didn't. If you actually need a new car and your salary has decreased in value then why would you buy a luxury (which they seem to be pushing) Jeep instead of a reliable Toyota that will last you twice as long? I know Jeep has more modest offerings like the Compass or Renegade, but why would you get a Compass over a similarly priced RAV4 if money was an issue? The RAV4 gets better mpg by a little, is a Toyota 4 cylinder naturally aspirated engine that will last a longer time, and probably holds its value better. Jeeps are perceived as toys by a lot of people.

 

[chaosjake]

Here's why I hate these articles. They never tell the whole story in order to entice clicks. For example, here's Jeep's sales and growth over time :

It's not going straight up that I grant you, but it still looks like they're doing okay to me and don't require "saving". Add in the expected production drops that they and others have planned as they transition to electric and this becomes even less of a worry.

I mean heck, look at Ford, they look worse than Jeep! Do they need "saving" too?

If Jeep trends down for another 2-3 years and are pacing back to the 2012-ish numbers, that to me would hold more weight for that argument. But I just don't see it here, unless of course you're trying to overstate the situation to get more clicks...

The lowest point on the Ford units sold is still higher than the highest point for Jeep. (Though Ford is way more of a diversified brand, and a chart for all of FCA/Stellantis/Chrysler would look better.)

 

[sharpsicle]

The lowest point on the Ford units sold is still higher than the highest point for Jeep. (Though Ford is way more of a diversified brand, and a chart for all of FCA/Stellantis/Chrysler would look better.)

That's not what you should be looking at.

You should be looking at trends. Trends tell the story.

 

[Guns_N_Rosaries]

Fake news ??? very interesting......apparently Jeep buyers in my area haven't got the memo we sell lots of used Jeep's and theres Jeeps everywhere and my local Jeep dealers are always trying to buy used Jeeps and new Jeeps are still selling strong

lol you live in Colorado, of course Jeep sales are going to be good there in a mountainous state with snow and ice. The data isn't only in your little bubble of the country. If I went by what I see in Colorado I'd think that Subarus and Jeeps were the most popular car brands in the country.

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