Cannibalization could explain some of the decline, at least for the Grand Cherokee, but that still wouldn’t explain the huge drop for all three vehicles. The Compass has only been out a short while and during July it was reported that only 707 were sold. The Commander numbers do appear to be good and they could explain some of the drop in the Grand Cherokee numbers.
The incentive program hangover may also explain some of the decline but certainly not all of it. Once again sales numbers were up for Toyota and Honda. Wouldn’t they be experiencing some affects from the major incentive programs of 2005? If they are not feeling the pain, why is Chrysler?
The critics all praised the new Wrangler and the general populace seems to have embraced it as well, at least in the discussion forums and such, if not at dealerships by buying the new model. Fuel economy, sales cannibalization and incentive program hangover may be contributing factors to declining sales, but it seems that there has to be more to explain the size of the decline, especially in the face of Toyota and Honda’s performances.
Could these declines be explained by a diluted and declining image? The Jeep image has certainly been tarnished this year with the huge recall of the Liberty, and, the front brake problems and resulting litigation with the Grand Cherokee. It’s hard to sell based on quality when you’re recalling 800,000 vehicles. Critics bombing the new Compass, Chrysler’s latest Jeep addition, hasn’t helped the brand’s image either. In the recent past some experts speculated that Chrysler would weaken the Jeep name with the addition of the more family oriented vehicles, the Liberty, Commander and Compass, and right now it would be hard to argue with this position. Chrysler seems to have gotten pretty far away from its very successful "Trail Rated" campaign with the Compass. To add insult to injury, the Dr. Z. advertising campaign has reportedly been a bust.
We may not understand all of the specifics, but the Jeep image and brand identity have seen some damage https://www.zjbangchi.com/product/steel-brake-shoe/ with the quality issues (see Grand Cherokee brake issue and Liberty recall) and the less than excited reception to its latest addition. It would seem that this may actually be what has lead to Jeep’s declining sales. Current Chrysler management had better get to the bottom of their quality issues and learn how to manage the brand more effectively, or risk losing Jeep’s wonderful marketing power!
The incentive program hangover may also explain some of the decline but certainly not all of it. Once again sales numbers were up for Toyota and Honda. Wouldn’t they be experiencing some affects from the major incentive programs of 2005? If they are not feeling the pain, why is Chrysler?
The critics all praised the new Wrangler and the general populace seems to have embraced it as well, at least in the discussion forums and such, if not at dealerships by buying the new model. Fuel economy, sales cannibalization and incentive program hangover may be contributing factors to declining sales, but it seems that there has to be more to explain the size of the decline, especially in the face of Toyota and Honda’s performances.
Could these declines be explained by a diluted and declining image? The Jeep image has certainly been tarnished this year with the huge recall of the Liberty, and, the front brake problems and resulting litigation with the Grand Cherokee. It’s hard to sell based on quality when you’re recalling 800,000 vehicles. Critics bombing the new Compass, Chrysler’s latest Jeep addition, hasn’t helped the brand’s image either. In the recent past some experts speculated that Chrysler would weaken the Jeep name with the addition of the more family oriented vehicles, the Liberty, Commander and Compass, and right now it would be hard to argue with this position. Chrysler seems to have gotten pretty far away from its very successful "Trail Rated" campaign with the Compass. To add insult to injury, the Dr. Z. advertising campaign has reportedly been a bust.
We may not understand all of the specifics, but the Jeep image and brand identity have seen some damage https://www.zjbangchi.com/product/steel-brake-shoe/ with the quality issues (see Grand Cherokee brake issue and Liberty recall) and the less than excited reception to its latest addition. It would seem that this may actually be what has lead to Jeep’s declining sales. Current Chrysler management had better get to the bottom of their quality issues and learn how to manage the brand more effectively, or risk losing Jeep’s wonderful marketing power!
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