Brother, is it ever!
Such a lovely parting gift from the former FCA that just keeps on giving!
One more hot steaming pile for CT to clean up.
Buildup of Stellantis inventories
Anyone notice that RAM, Jeep, Dodge and Chrysler have the largest inventories of vehicles.
The consensus is they have priced themselves out of the market. Any thoughts?
The consensus is they have priced themselves out of the market. Any thoughts?
1 - 6 of 85 Posts
Such a lovely parting gift from the former FCA that just keeps on giving!
One more hot steaming pile for CT to clean up.
When demand falls, the most stale products usually suffer first and the most.
Wrangler 4xe is a lot of what has been propping up Wrangler sales. Wrangler is already "old", soon to be 7 model years old.
My, how time flew by while FCA was busy making the balance sheet look pretty while groveling all around the industry looking for someone to rescue them.
OY!
P.S. Please forgive the extra sarcasm. I haven't had any coffee yet!
Your analysis paints rather a bleak outlook for Jeep, but the "swinging geniuses" at the former FCA have nobody to blame but themselves!The underlying issue with Wrangler, which I’ve been saying since JL came out, is that FCA focused too much on the things that gave it widespread appeal and not enough on the things that made Wrangler unique. And to some extent the same can be said of Jeep at large.
Everything that was new with JL had to do with improving daily comfort, convenience and efficiency, but hardly anything was done to keep Wrangler the master of the trails.
This helped FCA jack up prices and lineup its pockets, but has had two fateful long-term consequences:
And Jeep has apparently bit the bait. The problem is that this leads down to a crowded field, just when Jeep buyers are less loyal and have more options than ever.
- It attracted a new, more affluent buyer in exchange for the traditional Jeep buyer. This meant higher upfront sales and transaction prices, but a less loyal customer base.
- It left Wrangler vulnerable to competitive assaults. After a decade dithering on-and-off, Ford finally decided to launch Bronco when Wrangler looked most vulnerable. If you look at Bronco’s propositioning, it seeks to keep luring Jeep farther down the path of daily comfort and convenience, less so chase it down the off-road trails.
After FCA spent an entire decade putting all its eggs in Jeep, I wonder what Stellantis’s Plan B is going to be.
To me, this leaves Jeep in possibly its most vulnerable position....perhaps...EVER!. And, this doesn't even count the Scout brand being revived by VAG.
At this point, CT is going to need the patience of The Old Testament's Job (not to mention grit and determination)....to dig Ma STLA out of all the hot steaming piles of.....well....you know...left behind by FCA. It's a bit like a battlefield littered with land mines, isn't it?
THAT, friend, is a VERY slippery slope, and one which ought to be avoided to help protect the long term health of the company. My only hope is that there is enough Groupe PSA DNA in STLA to prevent pursuing a strategy that the former FCA would VERY LIKELY pursue!Hey this IS the endgame ie recession(?!) They have the margins pecisely so as to get through it to victory ie FINANCIAL survival/profitability with no net debt IN and THROUGH this the economic and business cycle that began in 2008/9. It will take rebates+cost cutting+cheaper financing+inventory reduction+layoffs etc. SAME is true of every other firm...except that unlike stellantis most cannot afford to financially since.....their breakeven points are not as low BY DESIGN as stellantis'. 30-40% of sales. They'd only be dead again if they also still had say a dart chrysler 200 journey cherokee etc to support through a more or less certain and predictable sales and financial recession. Managing for survival and earnings "...in and through the cycle..." Marchionne said. Well here is the endgame of the cycle. So let's see....
I feel a bit more sure about this than you do......I think it's SHEER MADNESS!I'm still not entirely sure about all this... but rebates? Seriously?
Isn't that avatar "Excedrin Headache Number 969", from the old series of TV ads for the pain reliever tablets?Just look at my avatar... That sums up this thread!
1 - 6 of 85 Posts
Allpar Forums
A forum community dedicated to Dodge, Jeep, Ram, Chrysler, AMC owners and enthusiasts. Come join the discussion about performance, modifications, classifieds, troubleshooting, maintenance, and more!
Full Forum Listing
