| According to Bloomberg, at least two out of the Big | | | | least for the Grand Cherokee, but that still wouldn't |
| 3 USA automakers are having serious problems this | | | | explain the huge drop for all three vehicles. The |
| year. GM is estimated to show a sales increase in | | | | Compass has only been out a short while and during |
| August over last year, but the primary cause is | | | | July it was reported that only 707 were sold. The |
| thought to be a significant shortage in inventory | | | | Commander numbers do appear to be good and |
| during 2005 rather than robust sales results this year. | | | | they could explain some of the drop in the Grand |
| According to independent analysts, Ford's sales will be | | | | Cherokee numbers. |
| down from 10% to 15% for the month of August | | | | The incentive program hangover may also explain |
| compared to 2005, while Chrysler's sales are | | | | some of the decline but certainly not all of it. Once |
| estimated to be down anywhere from 8 to 15%. | | | | again sales numbers were up for Toyota and Honda. |
| Both are experiencing significant declines for the | | | | Wouldn't they be experiencing some affects from |
| entire year. Chrysler's Jeep line of vehicles is | | | | the major incentive programs of 2005? If they are |
| experiencing a sizable downturn this year, which has | | | | not feeling the pain, why is Chrysler? |
| to be troubling to Chrysler upper management! | | | | The critics all praised the new Wrangler and the |
| The Jeep line historically has been somewhat of a | | | | general populace seems to have embraced it as well, |
| pillar of sales strength for Chrysler, but 2006 is seeing | | | | at least in the discussion forums and such, if not at |
| an exception to this. According to Chrysler, sales of | | | | dealerships by buying the new model. Fuel economy, |
| the Wrangler, Liberty, and Grand Cherokee are all | | | | sales cannibalization and incentive program hangover |
| down substantially from 2005. Chrysler reported that | | | | may be contributing factors to declining sales, but it |
| through July 31, 2006 year-to-date Wrangler sales | | | | seems that there has to be more to explain the size |
| were down 17%, Liberty sales were down 23% and | | | | of the decline, especially in the face of Toyota and |
| Grand Cherokee sales were down 37% when | | | | Honda's performances. |
| compared to 2005 sales! Sales for July 2006 were | | | | Could these declines be explained by a diluted and |
| down 32% for the Wrangler, 52% for the Liberty, | | | | declining image? The Jeep image has certainly been |
| and 58% for the Grand Cherokee. These are huge | | | | tarnished this year with the huge recall of the Liberty, |
| declines and one must wonder just what is fueling | | | | and, the front brake problems and resulting litigation |
| the drop. It has gotten bad enough that Chrysler has | | | | with the Grand Cherokee. It's hard to sell based on |
| recently announced a big sale for their new Wrangler | | | | quality when you're recalling 800,000 vehicles. Critics |
| on September 1, 2006. See more details at | | | | bombing the new Compass, Chrysler's latest Jeep |
| Can the huge decline in year-to-date sales for 2006 | | | | addition, hasn't helped the brand's image either. In the |
| be due to Chrysler not significantly addressing fuel | | | | recent past some experts speculated that Chrysler |
| economy in its Jeep offerings? Are the latest Jeep | | | | would weaken the Jeep name with the addition of |
| additions, the Commander and Compass, eating into | | | | the more family oriented vehicles, the Liberty, |
| Grand Cherokee and Liberty sales? Are these drops | | | | Commander and Compass, and right now it would be |
| to blame on last year's huge incentive programs? Did | | | | hard to argue with this position. Chrysler seems to |
| Chrysler miss the mark with its new version of the | | | | have gotten pretty far away from its very |
| Wrangler? Or is the Jeep name losing some of its | | | | successful "Trail Rated" campaign with the Compass. |
| trading power? | | | | To add insult to injury, the Dr. Z. advertising campaign |
| Fuel economy has become a major component of | | | | has reportedly been a bust. |
| car buying decisions and this could be hurting Grand | | | | We may not understand all of the specifics, but the |
| Cherokee numbers, but, Toyota did not see declines | | | | Jeep image and brand identity have seen some |
| in the sale of it's competitors to the Liberty and | | | | damage with the quality issues (see Grand Cherokee |
| Grand Cherokee. The RAV4 saw its sales doubled | | | | brake issue and Liberty recall) and the less than |
| compared to 2005, and 4Runner sales increased | | | | excited reception to its latest addition. It would seem |
| 4.4% over July 2005. Honda also reported sales gains | | | | that this may actually be what has lead to Jeep's |
| in July of 6.8% in it's trucks category, which includes | | | | declining sales. Current Chrysler management had |
| SUVs. So the argument for fuel economy being a | | | | better get to the bottom of their quality issues and |
| major contributor to the decline would appear to be | | | | learn how to manage the brand more effectively, or |
| a weak one. | | | | risk losing Jeep's wonderful marketing power! |
| Cannibalization could explain some of the decline, at | | | | |