Further PROOF of Jeep's decline.
Details About Fiat Brand Global Sales In 2022
From the article:
With 1.17 million units sold in 2022, Fiat was the 18th best-selling global brand but the top seller within Stellantis.
It is known that last year Fiat became the best-selling brand of the Stellantis group. Since the creation of this group in 2021, Jeep has been the largest brand in Stellantis by unit sales volume. However, based on data collected for 94 markets around the world, which represent around 98 percent of the global total, Fiat took the lead in 2022 with 1.17 million units.
Full article here:
Details About Fiat Brand Global Sales In 2022 (motor1.com)
With 1.17 million units sold in 2022, Fiat was the 18th best-selling global brand but the top seller within Stellantis.
It is known that last year Fiat became the best-selling brand of the Stellantis group. Since the creation of this group in 2021, Jeep has been the largest brand in Stellantis by unit sales volume. However, based on data collected for 94 markets around the world, which represent around 98 percent of the global total, Fiat took the lead in 2022 with 1.17 million units.
Full article here:
Details About Fiat Brand Global Sales In 2022 (motor1.com)
1 - 20 of 72 Posts
By this time, wasn't JEEP already supposed to have over 2 million worldwide sales annually?Further PROOF of Jeep's decline.
I never studied Brain Surgery or Rocket Science, but even old feeble-brained Me can see that something(s) is terribly wrong here!
Of course, being a 'Murican, my entire perception of the FIAT brand is likely distorted anyway.
I’m not entirely bought into this being a sign of Jeep’s decline. The continued marching of this brand upmarket would naturally mean less volume in my eyes. They clearly weren’t doing much in this market to boost Cherokee, Renegade, and Compass (until 2023) sales.
Fine.I’m not entirely bought into this being a sign of Jeep’s decline. The continued marching of this brand upmarket would naturally mean less volume in my eyes. They clearly weren’t doing much in this market to boost Cherokee, Renegade, and Compass (until 2023) sales.
So how much sales decline is “acceptable”? 10%? 20%? 30%?
Automakers have historically sought to grow sales volume because they have to spread ever increasing development and certification costs across a broader sales base.
History has proven that automakers with a smaller sales base are more vulnerable to swinging from a position of profit to one of loss when external factors, like recessions or energy crises, hit.
This is what happened in 2009: the Big 3 had been focusing for years on selling large trucks with big profits; when the economy turned they were caught with their pants down.
Jeep’s sales decline has less to do with selling more high-profit vehicles, and more to do with being unable to compete in lower priced segments.
A compounding issue Stellantis has is that as much as Fiat is now its biggest selling brand globally, Fiat remains a non-entity in North America. Meanwhile the bulk of its profits come from North America.
The more things change, the more they stay the same.
Considering that Jeep's sales volume keeps declining is contrary to it being a global brand. Jeep keeps retreating from international markets (China, India) and the sales numbers keep dropping.I’m not entirely bought into this being a sign of Jeep’s decline. The continued marching of this brand upmarket would naturally mean less volume in my eyes. They clearly weren’t doing much in this market to boost Cherokee, Renegade, and Compass (until 2023) sales.
The reality is that those assembly plants are not free and are a large fixed cost that needs to be recovered. A certain volume is required.
First and foremost, without seeing Stellantis financial forecasts there is no way I could begin to answer that.Fine.
So how much sales decline is “acceptable”? 10%? 20%? 30%?
No doubt Jeep is positioning itself to be more effected by economic factors with this strategy. I also think that Jeep is willing to take a hit on overall volume, especially in the near term, that will only partially be made back up with the additional volume of the Recon and Wagoneer S (or whatever it’s name will be). The hope here is, of course, that net profit will outpace the drop in volume no matter the economic situation. Personally I think this is highly risky as I have recently been treated with deep knowledge of Toyota/Lexus future plans with the next-gen GX and Land Cruiser…Jeep is in for some serious competition on the high end. These will be serious efforts unlike the LX, Sequoia, and Tundra.The reason automakers have historically sought to grow sales volume is because they have to spread ever increasing development and certification costs across a broader sales base.
History has proven that automakers with a smaller sales base are more vulnerable to swinging from a position of profit to one of loss when external factors, like recessions or energy crises, hit.
I think it’s clear that Stellantis has no plans to solidify Jeep on the low end in North America. Fiat being the best selling brand isn’t a problem in my eyes, especially given the spread of profit centers under the Stellantis umbrella. My main concern is something many have mentioned here, which is who is going to have the true volume models here in NA? Where are the vehicles on STLA Medium and who will have them? Apparently not Chrysler, Dodge, or Jeep as it stands right now…Jeep’s sales decline has less to do with selling more high-profit vehicles, and more to do with not being able to compete in lower priced segments.
A compounding issue Stellantis has is that as much as Fiat is now its biggest selling brand globally, Fiat remains a non-entity in North America. Meanwhile the bulk of its profits come from North America.
The more things change, the more they stay the same.
There appear to be signs that GM and Ford are now aware that they have created an affordability crisis for themselves.
The all-new Colorado will offer the lowest priced work truck in the segment, and Ford launched Maverick. Regardless of what dealers end up doing with markups and what not, these signal that there’s growing awareness inside the automakers that they have priced themselves out of the market.
Honda, too, has brought back the LX trim to Civic and Pilot, to try to offer more competitively priced alternatives to the Koreans.
I don’t see similar moves coming from Stellantis, though. All indications are that it’s business as usual over there, even though Hyundai-Kia is likely now outselling Stellantis in its highly profitable home market as we speak.
The all-new Colorado will offer the lowest priced work truck in the segment, and Ford launched Maverick. Regardless of what dealers end up doing with markups and what not, these signal that there’s growing awareness inside the automakers that they have priced themselves out of the market.
Honda, too, has brought back the LX trim to Civic and Pilot, to try to offer more competitively priced alternatives to the Koreans.
I don’t see similar moves coming from Stellantis, though. All indications are that it’s business as usual over there, even though Hyundai-Kia is likely now outselling Stellantis in its highly profitable home market as we speak.
I concur.First and foremost, without seeing Stellantis financial forecasts there is no way I could begin to answer that.
No doubt Jeep is positioning itself to be more effected by economic factors with this strategy. I also think that Jeep is willing to take a hit on overall volume, especially in the near term, that will only partially be made back up with the additional volume of the Recon and Wagoneer S (or whatever it’s name will be). The hope here is, of course, that net profit will outpace the drop in volume no matter the economic situation. Personally I think this is highly risky as I have recently been treated with deep knowledge of Toyota/Lexus future plans with the next-gen GX and Land Cruiser…Jeep is in for some serious competition on the high end. These will be serious efforts unlike the LX, Sequoia, and Tundra.
I think it’s clear that Stellantis has no plans to solidify Jeep on the low end in North America. Fiat being the best selling brand isn’t a problem in my eyes, especially given the spread of profit centers under the Stellantis umbrella. My main concern is something many have mentioned here, which is who is going to have the true volume models here in NA? Where are the vehicles on STLA Medium and who will have them? Apparently not Chrysler, Dodge, or Jeep as it stands right now…
They haven't had any volume leader since they purposely castrated Dodge.
Correct. FCA gave Jeep the double task of being the volume seller and a “luxury” brand. Which any Economics 101 student would tell you move in opposite directions.They haven't had any volume leader since they purposely castrated Dodge.
Jeep has grown well in brazil and latam, in japan and europe too. Also the 'middle east'. Not so china india or australia. More to come, though what with avenger bev etc. Remember that Renegade and Compass are first global then usa home market models. Successes globally speaking(i have a compass 2liter diesel 9 speed )...unlike cherokee. Nextgen bev capable Renegade Compass and Recon KM ...are overdue? admittedly but i guess that is due to electrification policy changes, pandemic etc. FIAT had a great brazilian plus argentine recession over last few years, uniquely. Jeep could too in usa plus europe(electrification)?
)...unlike cherokee. Nextgen bev capable Renegade Compass and Recon KM ...are overdue? admittedly but i guess that is due to electrification policy changes, pandemic etc. FIAT had a great brazilian plus argentine recession over last few years, uniquely. Jeep could too in usa plus europe(electrification)?
Truly new-to-us product won't be here for another year. (Not counting Hornet.)
I've never even studied Economics 101, and even I know that was a dumb idea.Correct. FCA gave Jeep the double task of being the volume seller and a “luxury” brand. Which any Economics 101 student would tell you move in opposite directions.
One could argue BMW and MB tried something similar though. There is a 1 series/A-Class as well as the 7 and S-Class…
That’s true, and despite all of the bluster (“we’re cutting models and focusing on high end models”) you’ll see they’re keeping some low end models available moving forward. Mercedes and BMW are entrenched luxury car makers though, which makes what they’re doing a bit different than Jeep.One could argue BMW and MB tried something similar though. There is a 1 series/A-Class as well as the 7 and S-Class…
There isn’t much special about owning a Mercedes, a BMW or an Audi anymore. They are a dime a dozen everywhere you go. Mercedes and BMW now continue to fall farther behind in the luxury sales race.One could argue BMW and MB tried something similar though. There is a 1 series/A-Class as well as the 7 and S-Class…
German automakers defined “luxury” for the past 25 years. But now Tesla easily outsells then, while Chevrolet, GMC, Ford and Ram routinely sell at higher transaction prices.
Honestly, I truly think Porsche is the only German luxury brand anymore. Similarly, Maserati and Aston Martin. Then you go WAY up to the exotics & ultra-luxury brands. Everyone else has fallen into premium, or one could argue that the US brands moved up in big chunks of their lineups.There isn’t much special about owning a Mercedes, a BMW or an Audi anymore. They are a dime a dozen everywhere you go. Mercedes and BMW now continue to fall farther behind in the luxury sales race.
German automakers defined “luxury” for the past 25 years. But now Tesla easily outsells then, while Chevrolet, GMC, Ford and Ram routinely sell at higher transaction prices.
I was with a bunch of under 35 year olds and they say Maseratis are "old man cars". They like Teslas for styling and luxury. Just a random opinion that may reflect a broader sentiment.Honestly, I truly think Porsche is the only German luxury brand anymore. Similarly, Maserati and Aston Martin. Then you go WAY up to the exotics & ultra-luxury brands. Everyone else has fallen into premium, or one could argue that the US brands moved up in big chunks of their lineups.
Volume is required to pay for assembly plants and amortize development costs. Without volume you are dead with 14 brands. VAG showed the way with volume VW, Skoda and SEAT supporting luxury Audi and Porsche.
The other reason why Fiat has had success is because it is the affordable brand. Unlike the failed attempt to make Fiat a boutique brand in North America, it is a value brand in other markets, hence its increase in volume.
As @aldo90731 indicated, people are resisting the higher transaction prices for vehicles and looking for value. Maverick is a great example of this.
As @aldo90731 indicated, people are resisting the higher transaction prices for vehicles and looking for value. Maverick is a great example of this.
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