[LouJC]

Many dealers are still acting like vehicles, new and used, are in short supply. That’s changing rapidly.

two used Grands I looked at and drove, have been at the dealers for 2 months, no drop in price. So I don't think they really care if they sell or not.
The one that was adding $2500 for make ready, I had to get up and leave, before I laughed in his face.
I really wanted a WK-2 Hemi, now they pissed me off, I'm going to put a radiator in my old '07 and keep driving it. I'm semi retired, don't drive a lot but I haven't bought a vehicle for myself since August of '09. That's a long time!

 

[vBD]

Some of this inventory is i believe meant for pre ordered vehicles that have taken months to deliver, so the excess inventory being cited here may in fact be lower....since they under delivered vehicles last year. Regardless if this is a recession at least for car sales then another shakeout will happen just like 2008. Having loss making compact sedans etc would'v only made matters worse. Besides the whole point of the merger is geographical diversification for survival in and through usa andor europe recessions. Now if recessionary conditions become extreme like 2008+.over the next year.... :-()

 

[valiant67]

Some of this inventory is i believe meant for pre ordered vehicles that have taken months to deliver, so the excess inventory being cited here may in fact be lower....since they under delivered vehicles last year. Regardless if this is a recession at least for car sales then another shakeout will happen just like 2008. Having loss making compact sedans etc would'v only made matters worse. Besides the whole point of the merger is geographical diversification for survival in and through usa andor europe recessions. Now if recessionary conditions become extreme like 2008+.over the next year.... :-()

I call BS. Why is it only affecting FCA USA? Think the excuses through before making them.

 

[Adventurer55]

Some of this inventory is i believe meant for pre ordered vehicles that have taken months to deliver, so the excess inventory being cited here may in fact be lower....since they under delivered vehicles last year. Regardless if this is a recession at least for car sales then another shakeout will happen just like 2008. Having loss making compact sedans etc would'v only made matters worse. Besides the whole point of the merger is geographical diversification for survival in and through usa andor europe recessions. Now if recessionary conditions become extreme like 2008+.over the next year.... :-()

That's true, but the only place this company is making REAL money is NA. There are profits elsewhere, but pale in comparison.

 

[77 Monaco Brougham]

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....

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!

 

[Dave Z]

I'm still not entirely sure about all this... but rebates? Seriously?

 

[vBD]

I call BS. Why is it only affecting FCA USA? Think the excuses through before making them.

This is just the start potentially of the navigation above all financially of the slowdown or worse recession. He who laughs last....etc....(financial and brand health through a potential recession) we'll see by year end

 

[77 Monaco Brougham]

I'm still not entirely sure about all this... but rebates? Seriously?

I feel a bit more sure about this than you do......I think it's SHEER MADNESS!

 

[vBD]

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!

Well tavares just said he plans on cutting costs faster than 'loss of pricing power' now underway possibly in n america....as a way of ensuring profitability and new ev investments through this potential downturn. He also said the firm was resilient in n america since it breaks even at just 40% of sales.

 

[valiant67]

Well tavares just said he plans on cutting costs faster than 'loss of pricing power' now underway possibly in n america....as a way of ensuring profitability and new ev investments through this potential downturn. He also said the firm was resilient in n america since it breaks even at just 40% of sales.

How do you cut costs faster?
Stop new product development? Oh, wait that’s been the method of operation already for the last decade.
Force suppliers to deliver cheaper parts? Already doing that and that’s why Jeep batteries, shock absorbers, steering boxes, steering stabilizers are junk.
Again that profitable at 40% sure sounds like an exaggeration. If that were really the case there would not be excess inventory building up.

 

[Adventurer55]

If thats true, then he has really no idea what's been happening at Mopar since the Daimler invasion. What's left to cut? One assembly plant? Check. Suppliers profits? Already did that several times in the last 20 plus years. Warranty cuts? Well they have been trying very hard to not own.up to the cheap parts they've been using, so check. Engineers to help engineer vehicles? Yep Ford seems to have gotten all of them, but Ford's build quality has went in the toilet, so there is that. I'm sure they will find other ways to cut. Oh, don't rule out pushing back the new products timeline either.

 

[DC-93]

Just look at my avatar... That sums up this thread!

 

[aldo90731]

How much more can be done? Dana has made axles for them since the beginning.

That’s for the engineers to figure out.

If Jeep wants to keep raking in the fat profits, it has to prove that it is committed to remaining the alpha dog on the trails

 

[Zagnut27]

That’s for the engineers to figure out.

If Jeep wants to keep raking in the fat profits, it has to prove that it is committed to remaining the alpha dog on the trails

Jeep does need to remain committed to improving off-road performance, as Bronco is very close in capability (remember who designed it after all). Most buyers will never use all of the capability of a Wrangler, or a Bronco for that matter. To the extent that they will be used by most, it doesn't matter.

However, for myself, it's not a difference in capability that has me looking at other brands, its the crappy dealer experience and the nagging issues that they have not addressed, not to mention the astronomical pricing. I love Jeeps (the vehicles), I just don't know if I want to deal with their (the corporation) BS anymore.

For those who say that IFS won't work, my Liberty held up just fine in 18 years (despite the crappy IFS parts), with varied use including mild to moderate off-roading, and I recall Norm's wife or daughter had a Liberty as well, and it did well for them also from what he told me (with a Franken Lift!).

 

[LeonB]

It used to be that a 60 day inventory was an ideal balance between the makers and the customers. For sure (duh !) 90+ day inventory means people don't want what you are offering, you have to offer rebates, low interest financing to try to get the cash you need. 40 days or less means people want your product and no need for incentives. The high inventory levels have come for many brands due to high interest rates and prices, greed by dealers for too long (especially with the pandemic), some vehicles able with reasonable maintenance lasting well over !00,000 Miles, many taking out longer term loans (72+ months) so are not buying as often. For some brands, they have under-invested in new versions, many vehicles in the recent past including 'Mopars', have had serious component issues (engines, transmissions, electrical), developing reputations that are killing their brands. If people are going to buy a new car, it will be the Japanese based brands as perceived and actually practically reliable, better designed and engineered.

 

[aldo90731]

Jeep does need to remain committed to improving off-road performance, as Bronco is very close in capability (remember who designed it after all). Most buyers will never use all of the capability of a Wrangler, or a Bronco for that matter. To the extent that they will be used by most, it doesn't matter.

However, for myself, it's not a difference in capability that has me looking at other brands, its the crappy dealer experience and the nagging issues that they have not addressed, not to mention the astronomical pricing. I love Jeeps (the vehicles), I just don't know if I want to deal with their (the corporation) BS anymore.

For those who say that IFS won't work, my Liberty held up just fine in 18 years (despite the crappy IFS parts), with varied use including mild to moderate off-roading, and I recall Norm's wife or daughter had a Liberty as well, and it did well for them also from what he told me (with a Franken Lift!).

Jeep’s response to Bronco ought to be the reintroduction of a Liberty/Cherokee with IFS, solid roof, traditional 4WD and QuadraCoil suspension.

There’s a lot of room in the Jeep lineup for something to bridge the gap between Grand Cherokee and Wrangler. It could share a frame with Ram Dakota. I’d seriously consider it as a replacement for my JL.

Unfortunately, I don’t see this happening in the current atmosphere fixated on electrification.

 

[Adventurer55]

Jeep does need to remain committed to improving off-road performance, as Bronco is very close in capability (remember who designed it after all). Most buyers will never use all of the capability of a Wrangler, or a Bronco for that matter. To the extent that they will be used by most, it doesn't matter.

However, for myself, it's not a difference in capability that has me looking at other brands, its the crappy dealer experience and the nagging issues that they have not addressed, not to mention the astronomical pricing. I love Jeeps (the vehicles), I just don't know if I want to deal with their (the corporation) BS anymore.

For those who say that IFS won't work, my Liberty held up just fine in 18 years (despite the crappy IFS parts), with varied use including mild to moderate off-roading, and I recall Norm's wife or daughter had a Liberty as well, and it did well for them also from what he told me (with a Franken Lift!).

If Liberty would've followed the looks of the Cherokee I think it would've lasted longer. My ex bought a new Liberty in 2005. It was a good vehicle. Had it lived long enough to get the 3.6 and 8sp, it would've helped tremendously.

 

[Zagnut27]

Jeep’s response to Bronco ought to be the reintroduction of a Liberty/Cherokee with IFS, solid roof, traditional 4WD and QuadraCoil suspension.

There’s a lot of room in the Jeep lineup for something to bridge the gap between Grand Cherokee and Wrangler. It could share a frame with Ram Dakota. I’d seriously consider it as a replacement for my JL.

Unfortunately, I don’t see this happening in the current atmosphere fixated on electrification.

A Liberty/Cherokee as you described would probably be my next vehicle. As I’ve said before, I feel like Bronco illustrates what Liberty could’ve been…probably minus the removable top and doors. A good solid roof 4WD vehicle to complement Wrangler. I guess JKU took over some of that role with 4 doors, but not completely. Liberty with IFS was much more comfortable to drive than my TJ, and a better executed IFS would’ve made it more capable off-road.

If Liberty would've followed the looks of the Cherokee I think it would've lasted longer. My ex bought a new Liberty in 2005. It was a good vehicle. Had it lived long enough to get the 3.6 and 8sp, it would've helped tremendously.

Yup, if they had evolved the original Liberty, and added the 3.6 with the 8sp it would’ve helped tremendously IMO. The 3.7 V6 was underpowered, though having a manual made it somewhat more enjoyable for me, despite being sloooow. Lol.

I initially saw Recon being a possible replacement for my Liberty, but pricing and the fact that it will be BEV only are making it less desirable in my eyes…pricing perhaps more so, but I’m also not sure I’m ready to go full electric yet either.

 

[Erik Latranyi]

Jeep’s response to Bronco ought to be the reintroduction of a Liberty/Cherokee with IFS, solid roof, traditional 4WD and QuadraCoil suspension.

There’s a lot of room in the Jeep lineup for something to bridge the gap between Grand Cherokee and Wrangler. It could share a frame with Ram Dakota. I’d seriously consider it as a replacement for my JL.

Unfortunately, I don’t see this happening in the current atmosphere fixated on electrification.

It is called the Recon.

 

[Erik Latranyi]

Some of this inventory is i believe meant for pre ordered vehicles that have taken months to deliver, so the excess inventory being cited here may in fact be lower....since they under delivered vehicles last year. Regardless if this is a recession at least for car sales then another shakeout will happen just like 2008. Having loss making compact sedans etc would'v only made matters worse. Besides the whole point of the merger is geographical diversification for survival in and through usa andor europe recessions. Now if recessionary conditions become extreme like 2008+.over the next year.... :-()

So, they are increasing rebates and offering special financing on pre-ordered vehicles?

Try to make up another story.