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Gladiator sales projections???

Discussion in 'Mopar News' started by CDJSalesPro, Mar 13, 2019.

  1. valiant67

    valiant67 ...

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    Wrangler already had a mild hybrid 2.0T option. It didn't make it to Gladiator.
     
  2. aldo90731

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    I don’t deny any of that. At the same time, Gladiator has a LOT more direct competition than Wrangler. Many of which can do 90% of what Gladiator does better and for a lot less money, and larger competitors that for similar price can do much more.

    We all tend to rationalize our purchases. Regardless, there’s no doubt that emotion is a key ingredient in Gladiator purchases. But emotion alone has normally proved insufficient to sustain sales beyond the initial 24-36 months.
     
  3. Ruptured Duck

    Ruptured Duck Active Member

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    If I'm not mistaking the thread started with the rumor of 140K being sold. This was never going to be the case. Again the original forecast made by Jeep to justify the production was in the 70-80K range. The escalating figures happened as the launch date approached. If after one full year (July 2020) and sales are below 70K than I will agree to the Gladiator not meeting expectations. As for units sold and pricing I think FCA will more than likely take 70-80K units sold all day long over 100K sold if it does not require the reduction in cost of 10%-15%. From a business case standpoint there is more to profitability and success than units sold.

    I am optimistic and probably a little bias when it comes to the Gladiator. Having owned one I can see it for what it is and what it is not. From day one I always made the assumption that the Gladiator would never fill out the assembly capacity of the new line and that other products would go down the same line. A companion Dakota or even a larger fixed roof Wrangler just made sense to me.
     
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  4. valiant67

    valiant67 ...

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    There are HUGE costs to be incurred whether they sell one Gladiator or 100k, i.e.: factory overhead, certifications, design and testing, etc.. Without volume, the per unit costs can and will erode profitability.
    That's why despite all FCA's claims of seeking margin over volume, they still must resort to stimulating volume.
     
  5. LoganSix

    LoganSix Well-Known Member

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    At beginning of this thread you posted this:

    It sold 60k in half a year.
     
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  6. Ruptured Duck

    Ruptured Duck Active Member

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    Agree but this argument can be made for the Wrangler ( guess should have better tied my train of thought together - sorry) . I think we could agree the general SUV market offers better options than the Wrangler at reduced prices and yet the emotional side sells far more of the Wrangler than they should. With that being the case I was trying to make the point that the JT even fills this emotional need better than the JL. Somehow translating this into marketing to help boost sales is the trick for FCA and Jeep. The original Scrambler comes to mind and how it was marketed directly at the compact truck market. The Scrambler was not a small truck and the marketing just did not work. Hope we are not seeing a repeat here.
     
    #406 Ruptured Duck, Jan 7, 2020
    Last edited: Jan 7, 2020
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  7. LoganSix

    LoganSix Well-Known Member

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    The diesel hasn't made it yet either, but will.
     
  8. aldo90731

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    I can see Gladiator selling briskly well into the future if Jeep offered a steel-roof version at a more competitive price, and perhaps the option of a regular size bed.

    The fact is, the underlying temptation remains for FCA to want to maximize plant utilization closer to the 200,000 units it has available. It is only a matter of time until a more conventional JT is made available, a Dodge Dakota reincarnates, or —gulp— a Jeep-badged “Dakota” is introduced.

    However, just like what’s happening with the Wrangler Unlimited, eventually the sales success of the spinoff version becomes the mainstay that threatens the original.
     
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  9. Ruptured Duck

    Ruptured Duck Active Member

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    Good point. I guess I was trying to make the argument regarding lowering retail unit price to increase sales. I do not have the data to add facts to my opinion and do not know where that cross over point in regards to retail price and cost to manufacture make reduced margins higher volume a winner. That is for much smarter people than me.
     
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  10. aldo90731

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    Sorry, I disagree on this one part. JL has only one body-on-frame 4x4 SUV competitor left on the market, Toyota 4Runner. That is it. Everything else are crossover vehicles replacing the space the traditional sedan used to occupy.

    That is not the case with JT: it has plenty of body-on-frame 4x4 competitors, and a growing number of them are being loaded from the factory with lockers, skid plates, off-road tires, rock rails and what not.

    It is true that JT is the only pickup to offer a removable top and removable doors. But that’s pretty much where its uniqueness ends; everything else can be obtained elsewhere. Ram even offers a swaybar disconnect.

    If it is true that’s Gladiator sales are heavily reliant on image, by definition JT is vulnerable to the next bright shiny thing to hit the market. There are reports that Ford is readying a through-and-through Ranger Raptor to do just that.
     
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  11. valiant67

    valiant67 ...

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    Yes, it sure is a delicate balancing act. too little volume and profitability suffers. Cut price too much to increase volume and profitability suffers.
     
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  12. aldo90731

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    Indeed. There are statistical procedures to determine the exact "optimization point" where profits and volume are maximized.

    But the automaker has to be brutally honest about realistic transaction prices, and any costs hidden in terms of rebates, brand perceptions, etc.

    Looking from the outside, I don't get the sense that the culture of openness exists inside FCA to conduct this type of exploration honestly.
     
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  13. Ruptured Duck

    Ruptured Duck Active Member

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    In this case it will be the Bronco and the reported Bronco truck in 2023. The business I am in is dependent on units sold, the ability to up-fit (accessorize) and the general marketing of a vehicle that can be transformed into a personal statement. We see the Bronco as a welcomed new vertical market but at the same time worry about market saturation and just the stealing of sales from one vehicle to another without actually seeing market growth. Time will tell. Until then plans and ideas have to be made without ever seeing the actual new Ford offering.
     
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  14. JKU12

    JKU12 Well-Known Member

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    "tall cars"
     
  15. page2171

    page2171 Well-Known Member

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    Ranger's first month back on the market was January 2019 so it was still ramping up early in the year. A full year of regular production for both will probably be a better indicator than this year.
     
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  16. Bionicrooster

    Bionicrooster Well-Known Member

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    my 2 cents.... I am buying a new Jeep this week or next. I would rather have a Gladiator, but will likely end up with the JLU, simply because of price. If JT was 3-5K cheaper I think it would be a no brainer.
     
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  17. CDJSalesPro

    CDJSalesPro Well-Known Member

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  18. aldo90731

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    That’s a good point. Most vehicle buyers operate on a 24-60 month horizon. For instance, the fact that Ranger came out in January 2019 doesn’t mean that every Ford loyal is ready to buy one just yet. And judging by Ranger’s past sales numbers, Ford has a large pool of customers to whom to sell a new Ranger in the months/years to come.
     
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  19. valiant67

    valiant67 ...

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    And Ranger covers a much larger segment of the market, starting under $25k. Ranger will possibly do well in fleet sales - a sector where Ford can dominate and still make money.
     
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  20. LoganSix

    LoganSix Well-Known Member

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