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Jeep CEO Says They’ve Fixed Their ‘Pricing Problem’

4.2K views 89 replies 20 participants last post by  Adventurer55  
#1 ·
#4 ·
BTW, STLA was very late adjusting prices downward following the pandemic shortages.

The competition didn't rise prices as fast or as long as STLA did; now consumers are overextended.

It's going to take a lot more than a token price adjustment for consumers to rediscover value and, more importantly, trust, in CDJR showrooms.
 
#7 ·
How are the dealers doing it? $22-$25k knocked off the price of the Wagoneer S. Where is the discount coming from?
And the more I drive it, the more I'm convinced it should have been a Chrysler. If it had been, they wouldn't have to worry about being great off-road. They could have just focused on being great on-road. And it is a great, on-road cruiser.
 
#5 ·
The article ignores the fact that recent Jeep intros have been ho-hum.

Grand Cherokee has the ignominy of being beat on the trail by Honda Passport; Wagoneer is outperformed by GMC Yukon AT4; Wagoneer S by Rivian, and Compass by Bronco Sport. And now everyone and his sister offers credible off-road spinoffs on their mainstream models.

Toyota alone launched all-new Tundra, Tacoma, 4Runner, Land Cruiser and Lexus GX with credible off-road variants. Ford is adding Tremor versions across its entire body-on-frame line. GMC is turning AT4 into a sought-after trim. Honda is serious about TrailSport. Meanwhile, Jeep kills Renegade, teases us with FWD Avenger and remains non-committal on Compass...
 
#6 ·
The article ignores the fact that recent Jeep intros have been ho-hum.

Grand Cherokee has the ignominy of being beat on the trail by Honda Passport; Wagoneer is outperformed by GM Yukon AT4; Wagoneer S by Rivian, and Compass by Bronco Sport. And now everyone and his sister offers credible off-road spinoffs on their mainstream models.

Toyota alone launched all-new Tundra, Tacoma, 4Runner, Land Cruiser and Lexus GX with credible off-road variants. Ford is adding Tremor versions across its entire body-on-frame line. GMC is turning AT4 into a sought-after trim. Honda is serious about TrailSport. Meanwhile, Jeep kills Renegade, teases us with FWD Avenger and remains non-committal on Compass...
Don't forget Hyundai and Kia. They started offering XT trims on their SUV/CUVs. I don't know how capable they are off-road, but they give the buyer the look.

Nothing on the Compass. Do we know for sure that Recon is coming to NA?
 
#8 ·
I have a personal problem with the price cuts because they crushed the resale value of my Grand Cherokee L. I feel like an idiot for buying it and having Stellantis hose me. I just saw a 2025 Grand Cherokee L Limited on the dealer lot with a $51K MSRP and my 2023's MSRP was $57K. I want to bail out of this thing but I'm about $6K upside down. Which means either putting more down on the next vehicle to get my payments reasonable or having a $1,000/mo car payment which is NUTS! I really feel a bit betrayed at this point so why should I be loyal to a company that screwed me? They're going to have to come up with some huge money via a loyalty program to keep my business at this point.

I really feel bad for the Stellantis customers who are now so buried that Stellantis couldn't sell them a car unless Chrysler Capital is willing to finance 150% of the value of the new vehicle their buying. And that ain't happening. Not to mention most of those customers couldn't afford the resulting payment.
 
#10 ·
I have a personal problem with the price cuts because they crushed the resale value of my Grand Cherokee L. I feel like an idiot for buying it and having Stellantis hose me. I just saw a 2025 Grand Cherokee L Limited on the dealer lot with a $51K MSRP and my 2023's MSRP was $57K. I want to bail out of this thing but I'm about $6K upside down. Which means either putting more down on the next vehicle to get my payments reasonable or having a $1,000/mo car payment which is NUTS! I really feel a bit betrayed at this point so why should I be loyal to a company that screwed me? They're going to have to come up with some huge money via a loyalty program to keep my business at this point.

I really feel bad for the Stellantis customers who are now so buried that Stellantis couldn't sell them a car unless Chrysler Capital is willing to finance 150% of the value of the new vehicle their buying. And that ain't happening. Not to mention most of those customers couldn't afford the resulting payment.
You think that's bad? You should see the depreciation on a Wrangler 4xe. Even though I got a really good discount at purchase, the value has plummeted. I'm sure a big part of this is that it hasn't proven to be a reliable hybrid implementation. When it is right, I love driving it. But it's spent a lot of time out of service.
 
#15 ·
It took 20 years to destroy the Jeep name, but by golly, they're working on finishing the job!
 
#16 ·
Well, since they priced themselves out my reach and don't really have anything anymore that appeals to me, I don't really care anymore. I'll probably drive the KIA Forte I currently have until I can't find parts for it anymore. I've got almost 181,000 miles on it and haven't done anything but routine maintenance on it. Oh, I did have to replace the belt tensioner for the serpentine belt. Less than $100 investment.
 
#18 ·
As I said on the same post on Reddit.
I'm sorry but it's not enough.
Mr. CEO here needs to do one of two things.
Either reduce the price more (over time of course, to not totally tank resale).
Or spend money on stockpiling parts and boosting overall quality.

You simply cannot demand the current prices while still having an atrocious dealer experience, and spotty at-best parts availability.
Or if you expect your customers to endure such awful repairs and conditions, then yes, the prices need to come down another$8,000.
 
#21 ·
Looking at pricing in isolation from the impact it has on resale values and on consumer trust is quite naive.

To be fair, we don't know if STLA is internally aware of the big mess out-of-whack pricing has created, and if these seemingly-naive statements by executives are merely for public consumption. But I'd venture guess, based on the past 10 years, and how they have bungled Jeep, Dodge, Alfa Romeo, Fiat USA, that these people are indeed delusional.

Nevertheless, for the Jeep CEO to claim that their "pricing problem" has been fixed by issuing a bunch of MSRP adjustments, suggests a very limited understanding of his business.

Hard to believe these people get paid what they get paid.
 
#22 ·
There was a time when they would fix the 4xe system until it was better than average in quality, to counteract that first impression, rather than wasting time and engineering talent shoving a 392 into the Gladiator... if they had a good hybrid setup for the Wrangler and Gladiator that could increase mileage by 4 mpg, it would be more of a make-or-break for a lot of people out there even though gas mileage is not a major factor for most buyers - because both are very thirsty, and making them cheaper to live with would probably do wonders for repeat buyers.
 
#25 ·
This popped up on WranglerForum today. Horror stories like this pop up across Jeep forums every day.

It is almost as if someone at STLA gets immense pleasure from inflicting cruelty to customers.

As long as these stories continue, they haven't fixed SQUAT!

Image
 
#26 ·
They don’t act like a serious car company but one that is ready to sell off parts of itself to keep the cash going back to the clueless euros masters. As much as I’ve enjoyed my past Jeeps I can’t trust them for a purchase at today’s prices….
 
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#31 ·
The struggles of Jeep owners to have STLA/Jeep honor warranty claims reminds me of the battles my mom had with Ford in the 80's which was a major reason why my mom & dad switched to Saturn in the early 90's...and never looked back. If you're not going to honor your warranty, then why pretend you even have one? Be upfront about it, state clearly to your customers that you will absolutely NOT stand behind your product and they're on their own if something goes wrong.

I state again, their lofty claims of profits and high margins are absolutely meaningless if you don't update and invest in your product, don't honor your warranties, and continually give your customers the shaft. This company is an absolute joke.
 
#30 · (Edited)
Maybe the Europeans are used to being treated like crap, but we're not. STLA is demonstrating a level of arrogance that is bleeding them customers and they're too blind to see it. You have to hope when you buy one of their vehicles that you get a good one that won't have issues. The problem is the issues are on the rise and the complexity of vehicles today makes a cure hard to come by in the near term. That's if STLA has any intention of fixing them or just stringing customers along until the warranty expires and then is telling them to stuff it.

It's not just about pricing, it's about the quality of the product and the response from STLA when something does go wrong. When I compare the attitude from Stellantis and its dealers that I deal with compared to my BMW dealer, it's night and day. BMW and my dealer do an outstanding job of supporting me and my X5 has had some serious issues. Yet I would by another one without hesitation because they stand behind their product; no BS, no games, just fix it with no fuss, no disappointment, no arguments. That's not hard to emulate for any business. It's common sense if you want to have repeat customers. Lexus gets it. When I bought my Lexus 30 years ago they treated me almost as well as BMW does.
 
#52 ·
Yes. My MINI dealer experience was spotless as well.

Funny how Marchionne set out to mimic MINI in charging "premium prices"...but conveniently forgot that they had to be accompanied by a "premium experience."

Just another half-assed job, typical of FCA...
 
#33 ·
We're on our 5th and 6th Jeeps right now and I feel the same way, it may be time to move away. The quality of our Grand Cherokee L has been a turnoff and the dealer's ability to address the issues disappointing. We've spent the last couple of weeks looking at a replacement and it most likely won't be a Stellantis product. Right now the two contenders are the Grand Highlander and the Pilot.
 
#34 ·
I don't get too worried about that, because the same horror stories show up on all the forums about the same thing. People airing their grievances about junk vehicles. First sentence. They bought a buyback vehicle. My question, why? I assume it was cheap, thats why.
Sorry, but no. I have owned other vehicles - Toyota Tacoma, Honda S2000, Mazda Miata, Mitsubishi Eclipse; both my brother and my business partner own a GMC Canyon: yes, every automaker has its occasional horror warranty stories, but none show the regularity, mendacity, cruelty and callousness, like STLA.

When Broncos started blowing EcoBoost engines a few years back, despite the difficulty of the situation Ford showed a level of disciplined customer care STLA could only dream of.

At the very least, STLA shows a big disconnect between claiming to be working to straighten plummeting sales...and continuing to treat customers like this.
How much does the dealer have to do with these decisions?
I've been using the same dealer since 2018, two different Service Managers, and I've never had a warranty claim denied on either Dodge or Jeep vehicles.
 
#43 ·
I haven’t had any issue outright denied, but have been told certain things were not issues (JT steering slip, 4xe charging errors). It’s ridiculous that you end up being put in a position where you have to prove there’s a problem despite it happening regularly.
Then there’s the parts wait, which seems to have gotten better from my recent experience.
Side note: I think the dealers are getting overwhelmed with 4xe issues. They continue selling well but aren’t delivering a quality product. Rumor is some dealers won’t stock them and Stellantis is buying a lot of 4xes back.
 
#46 ·
Denying that issues exist, and then dragging their feet fixing them and delivering parts, without outright denying warranty coverage, are other ways of attempting to "minimize costs."

Of course, pissing off customers carries a real cost as well. But those don't show up as a line item on their cherished quarterly reports.
 
#49 ·
The times have changed but service attitude of some Euro companies has not. Anyone here old enough to recall what a headache owning a Fiat, Renault or Peugeot was back in the 70s? Lousy service and poor parts availability. The German companies were a lot better back then and so was Volvo. So the main ownership of the former ChryCo is French/Italian….and we’re seeing the same lack of good business practices that we saw then!
 
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#50 ·
FCA believed there was an endless pool of conquest buyers out there who would pay higher prices than the former loyal CDJR customers. Insiders repeated the “go buy somewhere else” mantra when the FCA methods were questioned.
The problem is large numbers did go buy somewhere else and Stellantis is in denial of this.
 
#56 ·
Yeah, listening is great. But it’s well past time that they should be DOING something. Facta non verba.