Gladiator Q4 2019 sales numbers out - thoughts?

[BLK HOLE]

lol we could only be so lucky...

I wouldn't assume a 1yr run would make it valuable. Just ask the Blackwood.

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[Klutch]

I bought my JT just last week. I've bee looking at the Gladiator since January, 2019. I had been hearing about "The New Jeep Pickup" for ten years and was intrigued. I admit, when I first saw the prices, I was turned off. I agree this is a significant factor for less than spectacular Gladiator sales. Consider:

- The first Gladiators most people heard about were the Launch Editions. And right along with that people heard, "Sixty thousand dollars". I think that was the absolute worst marketing move Jeep could have made. Most people I talk to have never heard of the Jeep Gladiator. Everyone who has heard of it invariably says, "Not for sixty-frickin'-thousand dollars!". When I explain that was only for the Launch Edition, they just shrug because they have already lost interest.

- Another issue is the Gladiator is available ONLY as a crew cab 4x4. Other dealers can advertise low prices for a mid-size truck because they're using a stripped, regular cab 2WD as an example. This gets people onto the lot. Eventually, they discover the truck they actually want, which is a crew cab 4x4 with nice options, is much more expensive. But by this time, they are psychologically committed. This is simply not possible with a Gladiator. Early last year, a friend and I were looking online at midsize trucks. He was shocked at how expensive the Gladiator seemed to be compared to other midsize trucks. I pointed out that he was looking at low-end, 2WD examples and, if he looked at the prices for a Tacoma, Ranger or Colorado in crew cab 4x4 configuration, the prices were pretty similar. My friend said, "Yeah, you're right. I didn't think about that". And such is the attitude of many potential buyers.

- The Toyota name is legendary when associated with their trucks. Everyone associates "Toyota Truck" with "indestructible". There was even an episode of "Top Gear" years ago where they tried to kill a Toyota truck and, no matter what they did to it, it still started and ran. This is a significant psychological advantage for Toyota. That's why they haven't updated the Tacoma. They don't need to. Those trucks are outdated and obsolete in many ways, yet they still fly off the lot.

- Because of all the pre-launch hype, as we know, Jeep dealers started foaming at the mouth when the Gladiator hit their lots. As we have observed and discussed, they were marking up their JTs WAY above MSRP. Sure, a few people bought anyway. But the vast majority of potential buyers stayed home in droves. Jeep fans are rabid fans, but they are also practical and there's nothing practical about $10,000 over MSRP.

- Of course, dealers eventually started lowering their prices for the JT. The process was slow and fickle. I test drove my truck back in October and the dealer would come down $2,000 below sticker, but no more. Well, I asked again last week when I saw the same truck was still on the lot, along with over 30 other Gladiators, and they immediately came down another $1,000.

Thus, in order for the Gladiator to achieve strong sales, I think Jeep has a tough row to hoe. They must:

- Get the word out that this truck exists and is on the lot ready to sell

- Break the common perception the Gladiator is a $60,000 truck.

- Break the common perception the Gladiator is much more expensive than comparable midsize trucks.

- Convince dealers to offer and advertise competitive prices

Even then, there's no competing with the overwhelming momentum of the Toyota Tacoma. But certainly, Jeep can do much, much better when it comes to Gladiator sales.

 

[futzin']

nice post.

 

[rafaelsmith]

When its all said and done...JT is a niche vehicle. If someone is looking for a truck there are bigger and stronger models for quite abit less $$. If someone is looking for a "Jeep" (convertible, better 4x4 capable, no doors, etc) there is Wrangler. Much smaller group looking for a compromise of both....especially at 50-60k. Don't get me wrong....My JT is on it way. I am in that niche. I just think FCA would have been fools to think they would put up anything close to Taco, Ford, etc truck numbers...especially at such high relative prices.

Like others...i think MSRP is perhaps the biggest culprit....just browsing local dealers all you see is 55k+ models on the lot. That is a tough pill to swallow unless you already had to have it. (i.e niche).

 

[Insert_Clever_Name_Here]

When its all said and done...JT is a niche vehicle. If someone is looking for a truck there are bigger and stronger models for quite abit less $$. If someone is looking for a "Jeep" (convertible, better 4x4 capable, no doors, etc) there is Wrangler. Much smaller group looking for a compromise of both....especially at 50-60k. Don't get me wrong....My JT is on it way. I am in that niche. I just think FCA would have been fools to think they would put up anything close to Taco, Ford, etc truck numbers...especially at such high relative prices.

Like others...i think MSRP is perhaps the biggest culprit....just browsing local dealers all you see is 55k+ models on the lot. That is a tough pill to swallow unless you already had to have it. (i.e niche).

As mentioned on other threads I've seen to mistakes:
1. Flooded dealers with optioned out jeeps $55k-61k (at least around me) at launch
2. The trucks on the lot are optioned weird. Many are missing max tow and acc switch (a pain to install afterwards), but have leather, + a lot of the electrical upgrades not desired by most jeep buyers.

 

[TheFieldJournal]

The truck is overpriced and the options are overpriced, Jeep has no one to blame for these sales numbers but themselves. Sales for new vehicles are falling and will continue to do so. The Bronco will be released soon which will cut into Wrangler sales figures as I'm guessing ford will offer more value for a similar vehicle at a higher quality level than FCA. If the bronco sells well and they release a pickup variant the gladiator will be in serious trouble.

I think the gladiator has a lot to offer, and I will be ordering one sometime next year. But I know I could get a much better truck for my money than the gladiator. But... I like the look, I like ability to take off the top, and I like that it still has decent "truck" capabilities. It doesn't make sense financially, it doesn't make sense from a practicality standpoint, but I want one and I can afford one. Buy once, cry once.

I think the only people that are buying Gladiators are people that want a Gladiator. Not people that just want a truck. I also know there are plenty of people buying gladiators that can't afford them, but it's the American way, right?

I'm pretty sure these will continue to pile up on the lots. The big Jeep dealership in my area was asking 10k over sticker on the first Gladiators they got in. They now have 14 sitting on the lot. But they'll give me a deal at MSRP.

 

[PyrPatriot]

I kind of hope the JT never takes off. I love the excitement of seeing one on the road as I do a Honda Element or Toyota FJ or even an actual Hummvee. If they only ever sell half a million in 10 years, and then stop selling it, I'd be ok with that. I like driving a niche/unique vehicle.

Why did they stop selling the Gladiator back in the day? Or the Scrambler? What were their sales figures like early on and how long did it take before corporate said "no more!"?

I also kind of like the price tags associated with the JTs. People think I'm driving a $60k truck when I'm just driving a $40k truck.

I did NOT realize the Tacos were so outdated. If you go on firearm forums you'd think they were the greatest vehicle ever made.

 

[PyrPatriot]

Has anyone compared to how the limited number of JTs sold have remained off the market? I'm seeing only 140 used JTs in a 500mi radius of me (according to cars.com). Of those only half or so are either the Max Tow or Rubicon. And while we're on that topic, they are selling for only $1000 less than new, if that. I am seeing MANY that are listed for more than I paid for mine ($3500 under MSRP)

 

[Gunrunner72]

I'm pretty sure these will continue to pile up on the lots. The big Jeep dealership in my area was asking 10k over sticker on the first Gladiators they got in. They now have 14 sitting on the lot. But they'll give me a deal at MSRP.

It seems like the dealerships are still convinced that these are gonna sell themselves or there is going to be some ramped up demand for them at some point. I suppose there was, initially, for Jeep enthusiasts. First dealership I went to (I bought my Z06 from them, used, about 18 months ago) wouldn't budge off MSRP so I chuckled and walked out. Had to beat on the second dealership for nearly 3 weeks to finally get a deal around 3% below invoice. Maybe they're getting pressure from FCA, I don't know.

I kinda see the same thing probably happening with the Bronco. Once the initial surge of nostalgic buyers get their's bought, I don't see a big market for it.

 

[smlobx]

When the previous CEO of FCA, Sergio Marchionne, green lighted the project he said specifically that he was going to deliberately price the truck much higher than the competition because the new truck would have capabilities that no other manufacturer offered and he was/is right.

He also went on to say that their target sales figure was about 75K per year. Given the late roll out and the lack of real advertising I would say they are well on their way to meeting that figure.

Going back to the comment that Toyota sold X many Taco’s I would argue that it’s not about the number of units sold but rather the profit per vehicle that really matters. As an example, a few years ago Porsche was the most profitable car company in the world and it certainly wasn’t because they sold more cars than only one else but rather had the highest margin per car in the universe...

 

[Rickv100De]

If you break down the numbers 16,663/50 states means that 333 per quarter or 111 per month per state. How many Jeep dealers per state? Plus think of the typical buyer. Buy a Gladiator or get the JKU and pull a trailer for the cost difference? Since women control major purchases the JKU probably wins out.

I would expect to see more discounts.

Rick

 

[PyrPatriot]

Wow, did anyone notice those Patriot and Ram 200 numbers? I didn't even know there WAS a Ram 200.

And it looks like despite having a great economy sales are down across the board on all their brands

 

[nlicalsi91]

These things are just not selling in my area. I test drove a Gator Sport S almost 2 months ago at a dealership on Long Island and it's still for sale. In July I get drove a Firecracker Red Ruby at Westbury Jeep and its still for sale. It has over 250 miles on it from test drives and the dealership just moved it to their used inventory.

Plus the incentives are, lets be honest, shit. They should have pushed at least $3,000 during the employee pricing discount, instead most dealers were doing $500 off. Its pathetic honestly

 

[Bobzdar]

When the previous CEO of FCA, Sergio Marchionne, green lighted the project he said specifically that he was going to deliberately price the truck much higher than the competition because the new truck would have capabilities that no other manufacturer offered and he was/is right.

He also went on to say that their target sales figure was about 75K per year. Given the late roll out and the lack of real advertising I would say they are well on their way to meeting that figure.

Going back to the comment that Toyota sold X many Taco’s I would argue that it’s not about the number of units sold but rather the profit per vehicle that really matters. As an example, a few years ago Porsche was the most profitable car company in the world and it certainly wasn’t because they sold more cars than only one else but rather had the highest margin per car in the universe...

Yup, and the assembly line is only capable of 100k max in a year, so they were never going to target much more than that 75k number.

Pretty amazing that there seems to be zero impact on wrangler sales...

 

[CAL32]

I wouldn't assume a 1yr run would make it valuable. Just ask the Blackwood.

That was simply ugly, and why not just buy a Platinum F150 probably the same inside and out...no other options at the moment for an open air pickup...

I bought my JT just last week. I've bee looking at the Gladiator since January, 2019. I had been hearing about "The New Jeep Pickup" for ten years and was intrigued. I admit, when I first saw the prices, I was turned off. I agree this is a significant factor for less than spectacular Gladiator sales. Consider:

- The first Gladiators most people heard about were the Launch Editions. And right along with that people heard, "Sixty thousand dollars". I think that was the absolute worst marketing move Jeep could have made. Most people I talk to have never heard of the Jeep Gladiator. Everyone who has heard of it invariably says, "Not for sixty-frickin'-thousand dollars!". When I explain that was only for the Launch Edition, they just shrug because they have already lost interest.

- Another issue is the Gladiator is available ONLY as a crew cab 4x4. Other dealers can advertise low prices for a mid-size truck because they're using a stripped, regular cab 2WD as an example. This gets people onto the lot. Eventually, they discover the truck they actually want, which is a crew cab 4x4 with nice options, is much more expensive. But by this time, they are psychologically committed. This is simply not possible with a Gladiator. Early last year, a friend and I were looking online at midsize trucks. He was shocked at how expensive the Gladiator seemed to be compared to other midsize trucks. I pointed out that he was looking at low-end, 2WD examples and, if he looked at the prices for a Tacoma, Ranger or Colorado in crew cab 4x4 configuration, the prices were pretty similar. My friend said, "Yeah, you're right. I didn't think about that". And such is the attitude of many potential buyers.

- The Toyota name is legendary when associated with their trucks. Everyone associates "Toyota Truck" with "indestructible". There was even an episode of "Top Gear" years ago where they tried to kill a Toyota truck and, no matter what they did to it, it still started and ran. This is a significant psychological advantage for Toyota. That's why they haven't updated the Tacoma. They don't need to. Those trucks are outdated and obsolete in many ways, yet they still fly off the lot.

- Because of all the pre-launch hype, as we know, Jeep dealers started foaming at the mouth when the Gladiator hit their lots. As we have observed and discussed, they were marking up their JTs WAY above MSRP. Sure, a few people bought anyway. But the vast majority of potential buyers stayed home in droves. Jeep fans are rabid fans, but they are also practical and there's nothing practical about $10,000 over MSRP.

- Of course, dealers eventually started lowering their prices for the JT. The process was slow and fickle. I test drove my truck back in October and the dealer would come down $2,000 below sticker, but no more. Well, I asked again last week when I saw the same truck was still on the lot, along with over 30 other Gladiators, and they immediately came down another $1,000.

Thus, in order for the Gladiator to achieve strong sales, I think Jeep has a tough row to hoe. They must:

- Get the word out that this truck exists and is on the lot ready to sell

- Break the common perception the Gladiator is a $60,000 truck.

- Break the common perception the Gladiator is much more expensive than comparable midsize trucks.

- Convince dealers to offer and advertise competitive prices

Even then, there's no competing with the overwhelming momentum of the Toyota Tacoma. But certainly, Jeep can do much, much better when it comes to Gladiator sales.

I agree with the pricing, its expensive no getting around that, when i bought mine it hurt a bit even though I got a couple grand off but the sting was lessened by the almost 10K I received for my 2006 Wrangler that I only paid 13K for 10 years prior...if the residuals for the Gladiators stay high and everything is pointing at the fact that they should then your spending less for that more expensive truck...that being said incentives will drive sales and I agree pricing should be more competitive but its still way too early for them to significantly mark these down...at the end of the day I own a 4Runner and love it, Toyota is certainly on to something with the proven Tacoma but there is nothing like driving a Jeep with the top down and doors off...not to mention you can customize it with a lot less modifications ($$) and it felt a lot bigger on the inside than the Tacoma, I was actually cross shopping the Gladiator with the Tundra mainly bc of the back window rolling down but based on Tundra sales vs Tacoma sales it seems I am one of the few crazy people that matters to...we shall see but I have a feeling the Gladiator is going to take market share away from the leader...

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