The Not So Grand 2011 Jeep Grand Cherokee
According to Bloomberg, at least two out of the Big 3 USA automakers are having serious problems this 12 months. GM is estimated showing a sales increase in August over last year, but the primary cause is regarded as a significant shortage within inventory during 2005 rather than robust sales results this coming year. According to independent analysts, Ford’s sales will end up down from 10% to 15% for the month of August as compared to 2005, while Chrysler’s sales are estimated to remain down anywhere from 8 to 15%. Both are experiencing significant declines for the entire year. Chrysler’s Jeep distinctive line of vehicles is experiencing a considerable downturn this year, which has to be troubling to Chrysler upper management!
The Jeep line historically may be somewhat of a pillar with sales strength for Chrysler, but 2006 is seeing an exception to the current. According to Chrysler, sales of the Wrangler, Liberty, and Grand Cherokee are typically down substantially from 2005. Chrysler known that through July thirty-one, 2006 year-to-date Wrangler gross sales were down 17%, Liberty sales were off 23% and Grand Cherokee sales were down 37% in comparison to 2005 sales! Sales for July 2006 were down 32% for the Wrangler, 52% for that Liberty, and 58% for any Grand Cherokee. These are huge declines then one must wonder just what is fueling the drop. There are gotten bad enough that Chrysler has recently announced a big sale for their new Wrangler on Sept 1, 2006. See additional information at www. automotive. com/features/90/auto-news/22878/index. html
Can the substantial decline in year-to-date sales for 2006 be as a result of Chrysler not significantly addressing fuel economy in its Jeep offerings? Are the new Jeep additions, the Commander and Compass, eating into Large Cherokee and Liberty sales? Are these drops at fault on last year’s substantial incentive programs? Did Chrysler miss the mark with its new version of this Wrangler? Or is the Jeep name losing a number its trading power?
Fuel economy has become a major component of vehicle buying decisions and this could be hurting Grand Cherokee phone numbers, but, Toyota did not see declines inside sale of it’s competitors on the Liberty and Grand Cherokee. The RAV4 saw its sales doubled in comparison to 2005, and 4Runner sales increased 4. 4% across July 2005. Honda also reported sales gains within July of 6. 8% in it’s trucks category, which include SUVs. So the argument for fuel economy to be a major contributor to the decline would appear to be a weak one.
Cannibalization could explain some of the decline, at least for the Grand Cherokee, but that still wouldn’t demonstrate the huge drop for many three vehicles. The Compass has only been out some time and during July it’s reported that only 707 have been sold. The Commander numbers do appear to be good and they could explain some of the drop in the Large Cherokee numbers.
The incentive program hangover may also explain most of the decline but certainly not all of it. Once again sales figures were up for Toyota together with Honda. Wouldn’t they be experiencing some affects in the major incentive programs involving 2005? If they are not feeling the pain, how come Chrysler?
2012 Jeep Grand Cherokee Sales