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Discussion Starter · #1 ·
From the article:

The 2022 Grand Cherokee online configurator is live, and according to Muscle Cars & Trucks, it showed the starting MSRP for all trim levels. We checked ourselves and pricing is no longer there, suggesting it was indeed an unintentional leak. That also means it's possible the figures weren't final; we contacted Jeep for comment on the matter and we'll plug in an update if we hear fresh news.

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Full article here:

2022 Grand Cherokee Price Allegedly Leaked Through Jeep Website (motor1.com)
 

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Looks like roughly a $3k to $4k increase per model. It seems like a big price jump to me.
 

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Yeah, I’m sure it’s unintentional. Sure.
 

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This is why they couldn't use Giorgio for the Charger / 300. The platform is just too expensive.
That's easy, just raise the prices! It's all about the margins, amirite??!!
 
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The increase in price is not only because of the Giorgio platform.
The amount of screens and electronics is also a factor.
 
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It may well be for the JEEP brand which is being positioned as a 'tweener': both everyman-rugged etc AND increasingly (semi)'premium'
 

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They've been commited to minimizing investments in the more 'commoditized' sub/brands, segments and nameplates. So, besides Jeep, including exports of new wrangler and esp GC/L from usa: Ram and Ram Professional. And Dodge (as Americana muscle etc). Then there are the Italian imports into USA: maserati and Alfa. Last and the least: Chrysler, since it is by now just a name of an nonexistent former corporation and hardly a 'brand' (exMinivan) with any distinctive and significant 'equity' . Also they've been burned financially when they over invested mistakenly (c200, Pacifica, windsor plant redo despite few state incentive contributions) in Chrysler, so.
 

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It may well be for the JEEP brand which is being positioned as a 'tweener': both everyman-rugged etc AND increasingly (semi)'premium'
Time for some lessons from the American automotive past for premium brands that tried to also sneak in everyman models:
1961 Chrysler Newport
1982 Cadillac Cimmaron
If you aren’t familiar with these two automobiles and the damage they did to their respective corporations, please study them and learn why a “premium and everyman” product mix is going to be problematic.
 

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I wonder if GC prices are increasing that much so the Cherokee can move upmarket with the brand..

Maybe sub-Cherokee models will then disappear to overseas markets for good!
 

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Discussion Starter · #15 ·
I wonder if GC prices are increasing that much so the Cherokee can move upmarket with the brand..

Maybe sub-Cherokee models will then disappear to overseas markets for good!
Right now, just about everyone is raising prices due to the shortage of inventory.
 
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People see the rise in MSRP as the only price increase. But in reality it is much more.
Before you could buy way below MSRP for most vehicles. Now MSRPs are rising and incentives/discounts are falling. The $3k in MSRP increase might be more like a $5k or $6k increase in the actual "street" price compared to years past.
 

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Discussion Starter · #17 ·
People see the rise in MSRP as the only price increase. But in reality it is much more.
Before you could buy way below MSRP for most vehicles. Now MSRPs are rising and incentives/discounts are falling. The $3k in MSRP increase might be more like a $5k or $6k increase in the actual "street" price compared to years past.
True, but we need to keep in mind the separation and conflict between manufacturer and dealer.

Dealers can discount less and sell at sticker price or even add markups if they feel like it. None of that benefits the manufacturer who has an invoice price to the dealer.

By raising the sticker price, the manufacturer is increasing the invoice price to the dealer and will recognize the additional sales revenue.
 

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True, but we need to keep in mind the separation and conflict between manufacturer and dealer.

Dealers can discount less and sell at sticker price or even add markups if they feel like it. None of that benefits the manufacturer who has an invoice price to the dealer.

By raising the sticker price, the manufacturer is increasing the invoice price to the dealer and will recognize the additional sales revenue.
What I would like to know, and may or may not be able to research is if the"spread" between invoice and MSRP has widened, shrunk, or stayed roughly the same.
If invoice rose faster than MSRP, the manufacturer benefits and the dealer has a squeeze put on them.
 

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Discussion Starter · #19 ·
What I would like to know, and may or may not be able to research is if the"spread" between invoice and MSRP has widened, shrunk, or stayed roughly the same.
If invoice rose faster than MSRP, the manufacturer benefits and the dealer has a squeeze put on them.
Absolutely possible, but would not be good for dealer relations.

I wonder if any of our salespeople, like @CDJSalesPro can answer this?
 

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Even after anything new lands on a dealers lot the factory can raise the base price for the new orders. Usually happens in Canada twice a year. $200 to $400 increases or thereabouts. A new MY could come out with the same base price but it is a new transmission that is raising the price of the MSRP. This happened to the heavy duty segment and prices shot up $20K over just a few improvements.
Regarding a 'spread' it depends on just how premium the model is versus the base trim. Tradesman/ST and a Limited Ram have different expectations of markup.
I pay attention to the factory invoice and the MSRP and how much of that 'spread' would go into the trade to find the true base value of the trade. All while keeping in mind the general sales activity of that trade-in model in auctions and other websites.
In a hot sellers market those 'spreads' are maxed and the Used sales begins in a new battleground. Tacking on extra Mopar accessories help with the net and could incrementally lower the value of the trade. Leaving more room for profit.
Ultimately, I believe the profit spread has been growing in general. It seems price increase may match the growing costs of living. Not many are promised or receive raises in this capitalist based business . Check the price of a 2015 era Grand Caravan then check the 2020 Grand Caravan and then jump up to the Chrysler Grand Caravan. The '17 and up had a slow build price jump and discounts certainly didn't lead the pack. The new tariffs on every damn thing wasn't the first domino.
<edit> I went to the Fleet side and tried creating a concession for a '22 HD 2500. 'No models loaded' was the result. Still too early for info from all departments. Soon.
 
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