Jeep Is In Trouble And Hopes Nostalgia Can Save It

Jeep Nostalgia
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Here’s a pretty terrifying fact if you’re a marketer for Jeep: out of the top 33 car brands selling cars  in the United States, Jeep’s sales growth is at the absolute bottom, meaning that there are 32 brands ahead of them (can you even name 32 car brands?). In a market where almost every brand is growing, Jeep has lost 12% of sales compared to 2022, which itself was a dismal year. This comes after four consecutive years of sales declines for Jeep. What can be done?

Nostalgia! I don’t usually talk about marketing here, though it does fascinate me. Jeep is, potentially, a super strong brand, but it hasn’t been lately. The approach Stellantis is taking to fix it is an interesting one and I want to talk about it first. There’s also some news out of Mercedes in the form of a “Baby g” as well as updates on Toyota’s fuel cell projects and a look at the overall chip supply.

Check Out The ‘Dents’ On This Jeep

Screenshot 2023 09 07 At 10.19.40 Am

I’ve discussed, at length, the challenges Jeep is currently facing. On the one hand, the PHEV 4XE vehicles have been a surprising sales success. On the other hand, the overall product mix for Jeep doesn’t seem to be resonating with the larger market. Plus, competition from Ford and its Bronco line of vehicles is giving the Wrangler its first real test in decades.

Jeep, ultimately, has a product problem. Perhaps the new 2024 Jeep Wrangler is good (we haven’t reviewed it yet). Still, a mildly refreshed 2024 Wrangler is not going to suddenly turn the brand’s fortunes around.

Just look at this sales report from FCA:

Screen Shot 2023 09 07 At 8.44.00 Am

There’s the Jeep brand through the first half of 2023. It ain’t pretty. YTD the best performing vehicle is the Compass, which appears to be heavily incentivized (the brand is currently offering 15% off MSRP). Literally every other vehicle is declining year-over-year.

In my humble opinion, the Wagoneer/Grand Wagoneer has not broken into the big SUV space to truly challenge Ford and GM. The Renegade is old and hard to swallow at almost any price. If you want a Jeep Wrangler there’s no better Jeep Wrangler than a Jeep Wrangler, but depending upon the price, you might be better off buying a Bronco Sport than just about any of their small crossover/SUVs (or a Chevy Trax or Kia Seltos, if you don’t need/want the off-road chops).

The Grand Cherokee is good and, if you work for Jeep, the rebound in Q2 is hopeful.

Product problems are hard to fix and it takes years, not days, to fix them. You know what you can fix in days? Marketing. Marketing will always exist to fix product problems.

A story in Automotive News caught my eye this morning, because the reporter there spoke with Stellantis marketing head Olivier Francois to find out exactly what the brand is trying to accomplish. The campaign is called “Dents” and it’s dripping with nostalgia. Just look at the video at the top of this section. Look at all the memories created by one Jeep! Look at the family! Listen to the smarmy, Mumford & Sons-y song!

From the article:

Olivier Francois, marketing chief for Jeep parent Stellantis, said the ad’s focus is building loyalty rather than conquesting buyers.

Francois said the time was right for a Grand Cherokee campaign as dealership inventory grows. He said the nameplate has logged millions of sales since 1992 and has a place in the hearts of many.

“This is an extended approach to loyalty,” Francois told reporters last week. “Literally a new generation, cross-generational loyalty to the vehicle, and this will allow us to add an emotional and nostalgic level of connection with the customer.”

As Peter pointed out in Slack, this is basically the same ad Subaru ran, with essentially the same song, back in 2017:

Screenshot 2023 09 07 At 10.19.54 Am

I mean, I work with a crazy person who is spending a lot of time and money putting together the ultimate Jeep Grand Cherokee so maybe this is going to work on Jeep people.

They Call Me ‘Baby g’

Screenshot 2023 09 07 At 10.20.06 Am

Speaking of beloved off-road brands… for years, Mercedes has apparently considered making a smaller G-Class. Instead, Mercedes built the more family-friendly GLB, which is a completely fine and forgettable crossover thing.

It sounds like we’re finally going to get the baby-G.

“Tonight, we are announcing for all the G-Fans out there, there will be a little g,” Mercedes CEO Källenius  told Bloomberg at the Munich car show, adding “So a son or daughter of the iconic G.”

This makes a lot of sense to me. A smaller, cheaper, boxy Gelandewagen can trade on the brand’s iconic shape. While there’s no timing that’s been announced, it’s clear from Mercedes that this new itty-bitty-g will be all-electric.

Microchip Shortage Update: North America FTW!

Toyota Plant
Photo: Toyota

The ongoing microchip shortage has had an outsized impact on the car market in the United States, but our fortunes are improving. According to Automotive News/Auto Forecast Solutions, the number of vehicles that had to be delayed due to chips shortages in North America fell to only around 4,700 last week.

That’s not zero, but it’s a big improvement from August of last year, when around 22,300 vehicles were cut in a week according to the same data set. Things are still rough in Asia, where non-Chinese plants lost 43,157 vehicles and Chinese plants lost an additional 19,669 production slots.

Toyota’s Long Beach Port Operations Now Powered By Hydrogen

Tri Fuel PlantIf you go to the Port of Long Beach complex and find Toyota’s section you’ll see something quite interesting. Rising out of a massive concrete field is a strange collection of metal tubes, machinery, and tanks that at once looks familiar and somehow new.

This is a hydrogen “Tri-Gen” powerplant, built by the company FuelCell Energy, and it now powers Toyota’s port operations. Using renewable biogas (i.e., natural gas created by decomposing biomatter), the facility produces electricity, hydrogen, and usable water.

The energy will help power Toyota’s equipment, the hydrogen will be used for Toyota hydrogen vehicles, and the water will be used in the company’s car wash operations. The water part is quite interesting and should, according to Toyota, reduce water supplies by about half a million gallons per year.

While I’m still not convinced that we’ll all be driving hydrogen cars in a few years, these kinds of industrial projects make a lot of sense to me. Obviously, there are limits on how much biogas can be produced, but taking methane released from landfills and preventing it from becoming a greenhouse gas is a powerful idea.

The Big Question

It’s Thursday. It’s been a long week. Here’s an easy one for you: How would you save Jeep?

Photos: Toyota, Jeep

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248 thoughts on “Jeep Is In Trouble And Hopes Nostalgia Can Save It

  1. Wrangler sales are being cut into by the Bronco. Wagoneer line is comically overpriced and garish, and is attempting to conquest notoriously loyal large SUV buyers. And their entry level options are so, so overpriced, and hideously unreliable. Sooooooo, what would they expect?

    I know Jeep similar to other Chrysler parent company brands (or whoever technically owns them at any given time) is typically starved for updated products. They’re still trying to sell the positively ancient Cherokee and Renegade. The Compass may be one of the blandest vehicles on sale today, from the brand that’s supposed to be about fun and adventure? The Grand Cherokee is fine, but it’s in a class that’s completely loaded with competition. Every brand has a competent midsize SUV to sell.

    Fixes to the Jeep brand:

    1) Bring a real, competitive entry level product that actually has some fun baked in. People make their best memories and become loyal to brand based on the nostalgia that’s created in their younger years.

    2) Stop the fucking MSRP bloat. Many people aren’t expecting to be able to negotiate MSRP down 10%, so when they see a damn Renegade listed at 36k, they don’t bother to even consider the brand. Stop doing this. You’re actively scaring away people.

    3) Bring back either an entry level Wrangler, or another product that’s Jimnyesque. Want people to buy Wranglers in the future? Make an entry level product that’s actually available so that you can sell Wranglers to them later. I don’t remember the last time I saw a 2-door base Wrangler anywhere, and I doubt it’s because people wouldn’t buy them. Get them hooked on the product/brand/lifestyle, then get them to pony up once they’ve hopefully aged into an income.

    1. In 2015 I bought my 2012 2-door 6-speed Wrangler Sport CPO with 40K on it for $17K. I recently went looking for the same spec because I needed to replace the rockers and it was a big job, and I had two other big jobs recently. $32K for a 2-door stick with 30-40K on it. The bloated prices have trickled down into the used Jeep market, even for the reportedly “less desirable” ones. I’m priced out of the market and I’ve been a Jeep guy for 40 years.

  2. jeep has a product problem, marketing can only get them so far.
    most people think jeep’s appeal is off-roading capability. i disagree, the appeal of a jeep is FUN!
    new jeep models do NOT have to be capable off-roaders, they HAVE to be fun.
    many of their (soul sucking) products can never be fun…kill ’em!
    a wrangler is fun.
    a wrangler-sport would be fun…and more affordable, more easily sold.
    fred and the bishop’s van would be fun.
    a jeep miata would be fun, – the jeeata!
    raid the parts bin and focus on happy smiling people having fun in a jeep.
    a fun-focused market niche offers a lucrative future that a diluted brand of posers cannot.

    1. This is a great point and one I wish I’d thought to include in my comment. Jeeps didn’t used to be considered as cars (even though that’s how the vast majority were used). They were fun (and affordable). Now, they’re mostly just cars and overpriced toys.

  3. Jeeps problem is PRICE.

    The Renegade is a great little 4wd vehicle, but … with the options most have, they are asking THIRTY SIX THOUSAND DOLLARS. I’m sorry, but no, that is not a 36k vehicle.

    The Grand Wagoneer is…. $109k!!!!

    Their shit is all overpriced, the Wrangler has always been overpriced, the Gladiator is overpriced, all of it costs too much.

    1. The answer is looking Stellantis in the face and screaming, yet they can’t hear it. I guess that’s what happens when your sales are way down, but your profits are still way up. They’ve just prioritized profits over units sold. At some point, it’s going to catch up to them. You can only fleece your loyal buyers for so long. I’m keeping my 2012 until it falls apart, apparently.

  4. First step to saving Jeep: License the Suzuki Jimny, redo the front clip to make it a baby wrangler, call it the wranglette or something like that, and sell the crap out of it.

    1. I will order one tomorrow if they do that! My most desired vehicle in the world is to have a Jimmy in the US. I am in Italy right now for work and have come across a few of them and really really really just want exactly that!

  5. The Jeep question is a tough nut because a lot of what Jeep meant to me is completely gone and my immediate, emotional reaction is to cry ‘give me that back’ But that’s not going to happen because Jeep’s targeted customer base has shifted over the decades.

    Understandable, there’re far more potential buyers in its current target demo than in its historical adherents. But that leads to a peeling off of Jeep traditionalists, which lowers sales somewhat, compounded by a cooling market for Jeep products in its more recent buyers group.

    There are already great comments in this forum about Jeep’s older offerings, bland styling, feature bloat, etc., as well as better (and often cheaper) competition from all quarters that helps explain the sales falloff. But competition alone does not explain the growing disaffection. Jeep has arguably had much greater direct competition in the past and soldiered through.

    I think in trying to become all things to all people, Jeep has lost its aura. I’d much rather have an old CJ than a new Wrangler even though I recognize the Wrangler is vastly superior in so many aspects. But it simply does not appeal to me. Wranglers are not simple, cheap, tough little trucks. Except for their shape, they’re indistinguishable from every other “off-road capable” SUV on the road and, sadly for the Wrangler, not as good when it comes to the creature comforts their current buyer demo demands.

    The Grand Cherokee and Wagoneer are adequate if unexciting, but the Compass and Renegade are pitiful, in my opinion. Adequate and pitiful are not good marketing fodder.

    If it’s my call, I’d introduce a smaller, cheaper downmarket model similar to a Jimney to try and lure back traditionalists and people who want to modify and wrench on something that doesn’t cost $60k out of the box. I’d trim the existing product lines down to the Cherokee and Wrangler family, simplify the model lineups therein, and stop selling the Wagoneer as a Jeep. Let it be its own brand.

    Forget trying to appeal to nostalgia (like the Willys branding), that’s a lost cause. Those that remember what Jeep was are mostly no longer customers, and those who are customers won’t remember anyway. Unless Stellantis wants to underwrite a revival of the “Rat Patrol,” I could go for that.

        1. Yep, kill the Compass and/or Renegade and bring back the Jeepster (or Scrambler) to take their place and compete with the Bronco Sport. Hell, a regular cab shortbed JT might put the price within reach if it’s not possible to make a future Dakota derivative work.

          1. A small, boxy, aggressive-looking, utility-driven, unibody vehicle based on the turbo-4 with fully independent suspension even at $30K I think would be a hit these days.

      1. And the Wrangler starts around $32k. That is a lot when the Ford Maverick starts around $24k and gets better fuel economy. Sure, those vehicles are not equivalent, but I’m sure they get cross shopped. Jeep needs a cheap utility vehicle.

        1. Agree. The Maverick Tremor model starts out slightly cheaper than the cheapest Wrangler. While it unquestionably is not an equal to the Wrangler in sheer off-road ability, it does provide more than enough capability for most people and in a more passenger friendly cabin. It comes down to how much you’re willing to pay for the Jeep “mystique,” and for me that’s zero. I’ll pay for a vehicle, but not a reputation.

  6. My theory on Jeep, is I like the 4XE stuff. But they also need the dirt cheap equvalent of the Mahindra Roxor in North America, if they won’t let the Bharatis sell theirs here.

  7. The difference between the Jeep and Subaru commercials is that Subaru actually harkened back to a model that’s beloved, had character, and history. No one’s pining for their old WK.

  8. Jeep needs cheaper shit! Update the renegade! use the italian compass update to make a new compass! make a decontented unlicensed tribal name from el grande unlicensed tribal name. 

  9. What immediately struck me on the model sales chart, and as you alluded to, is that the Compass is up because it’s cheap. The others aren’t, especially the Wagoneer models. I guess the Renegade is cheap too, but seems a bit more niche.

      1. You keep saying that. I don’t know where you live, but a quick search on Autotrader shows the majority near me at around $30k brand new. Plenty below that mark. $36k is about where they max out, and there are only a handful at that level.

        1. Also it’s not like the most expensive model needs to be cherry picked to drive home how expensive the Renegade is. At its $28k base price it’s already at least a couple thousand more than virtually every other vehicle (which are also newer designs) in its class with AWD, and close to several the next size class up.

        2. Our local dealers don’t list a single Compass under 35k. And that’s after claiming there’s 6k of rebates! They have a high trim one listed at 41k after rebates. Makes me gag.

          The Compass is a seriously bland product and appears to be similar to… a Seltos or a Crosstrek as far as competition goes. I can’t imagine a reason why someone would go through the exercise of trying to negotiate down the price only to end up with an oddly blander version of those cars, at the same or a higher price.

          1. Talking about Renegades, not Compasses, but your point is still valid. Was shopping SUVs in that range recently (a soul-crushing experience, to say the least), and I honestly couldn’t figure out why both models exist.

    1. Even then, I’m not sure how much of it is just price – at least, not the Compass’ price. The Renegade is priced on top of the Compass but the Compass is much more vehicle for the money – bigger, updated design, more power (2.0T) and better estimated mileage. The Cherokee lineup starts 10k more now that it’s cut back to just 2 models, didn’t offer the 2.4 for a year or two which it does now but is also down on power and mileage against the Compass which is the same size or larger inside. You’d need a hefty discount to pick either of the others over a Compass.

      It would be especially alarming if Compass sales weren’t up. As recently as 2020 both Compass and Cherokee were good for 6-figure sales volume each. Compass looks like it will break that, but Cherokee certainly won’t.

  10. Here is how you save Jeep, cut MSRP/Sticker. Anyone that knows, you can walk onto almost any Jeep dealer and buy anything off the lot for 10-20% off very easily. But most people don’t know and/or are not good new car negotiators. The high MSRP scares people away that they will never walk through the door.

    1. This 1000x. They’re just scaring people away with insane sticker prices.

      When every single other dealer from other brands out there is basically just selling cars at MSRP, consumers are going to have a hell of a time comparing pricing with Jeep products. You’re comparing a Crosstrek stickered at 32k and selling for such, with a Compass stickered at 37k with *mystery negotiation discount*.

      1. Maybe they should pull a BB&B and just mail 20% coupons to every mailbox weekly. Or better yet go the Kohls route and varying 10-30% off coupons and occasionally bonus bucks for the next Jeep.

        1. Ha, that didn’t work out so well for Blood Bath & Beyond, but that’s probably the joke.

          It does bring up a funny thought though. Would anyone potential customer take a coupon for a car seriously, even if it was real? We’ve all received bogus mailers from dealers with something like a Kia Telluride on it with explosions in the background, claiming 500$ with a test drive or some nonsense like that. If a manufacturer wanted to send something out that’s like “no seriously, take $8,000 off MSRP of any Renegade in your local dealers inventory, and we’ll make them honor that price” would anyone even believe it?

          1. LOL, but I don’t think the manufacturer can send you things like that in the mail for data sharing or dealer laws. It would have to come from the dealer.

            With all their struggles, I am shocked theres no new TV ad with a big discount. Remember Ram at one point had a free Hemi engine upgrade, there have been other big freebies FCA has offered. TV ad saying for on lot inventory you only pay base price, all options and packages are free.

            1. That would seem to be the easiest way to get the word out, but people tend to be so cynical about car pricing these days, I’m not sure anyone would believe the discounts they’re trying to sell.

          2. BB&B was doing fine until they invested their profits on launching their own brand, when even former KMart shoppers responded to that brand with a shrug.

            1. BB&B had many, many problems, including a class action lawsuit in which they hired literally everyone as “managers”, then refused to hire additional staff, forcing 2-3 people to work 70 hour weeks because they were salaried (not a good salary, mind you). Source: My dad. Granted, that’s not an uncommon strategy for retail this century.

              Once Target and a few other stores discovered that they could completely annihilate BB&B’s core business (wedding registries) and take it for themselves, BB&B died a pretty quick and painless death.

    1. At least the premise is more believable. I’ve seen some sloppy Soobs out there, but apparently this guy hasn’t tidied his car for 15-ish years?

      I was hoping that the dent commercial was going to be about the tradition where people purposefully dent their new cars to take away the hurt of “that first dent”

      1. True. Who doesn’t clean up after a trip to the hospital? What self-respecting young lady doesn’t keep the corsage (at least for a while)? Still, the Subie add worked better for me.

  11. Jeep has two main problems. 1. Current reliability and build quality are garbage. American manufacturers learned in the late 80s that loyalty will only take you so far if you are building crap. 2. They are crazy overpriced. They are charging premium segment prices for bottom rung products. Side note. The other manufacturers are printing money with premium luxury suvs and the the GW is way off the mark to do that. Clean sheet start based of the 70s/ 80s GW and you may have a contender. People want flash with a touch of nostalgia, the new GW is far too bland.

      1. Yep. Give it a serious engine (that works), miles of chrome, maybe real wood veneer, and a body with character and gen Xers like me would eat that shit up.

  12. Spin off the Wrangler name and start making other stuff with that name. Like Ford keeps doing with the Mustang and the Bronco.

    Make a Wrangler E that has nothing to do with the Wrangler. or some other small/medium SUV with the Wrangler name. Oh, and don’t charge Wrangler prices. They’re ridiculous when you look at what you are getting that you’ll actually use (which is what drive volume for the normies).

  13. I’ve never been a Jeep fan, but I’ve got a thought: Jeep was never about volume. The reason it was successful was leadership in its niches.

    What happened is that their primary niche (off-road ability) became very popular, even for people never using that ability. So, over the last few decades, the various corporate leaderships have turned Jeep into a volume brand by creating products that would appeal to the general population, even if less compelling within their niche.

    At the same time, leadership has allowed the brands that were supposed to be volume brands (Dodge, Chrysler, and Plymouth) to wither.

    My plan for saving Jeep: only have the Wrangler, the Gladiator, and a Cherokee. Then, the big thing is to make compelling less-rugged vehicles for the other remaining brands.

  14. Honestly, I think Jeep is SOL, at least as a brand that sells a large volume of vehicles. Aside from the Wrangler, their products aren’t interesting and haven’t been for some time.

    Jeep’s only option is to sell a very limited range of products. I would continue to sell the Wrangler/Wrangler Unlimited and a better, redesigned version of the Grand Wagoneer (a low volume $150,000+ vehicle that competes with the G-class and luxury versions of the Range Rover). Jeep could consider offering a better Renegade in the future, but they must proceed with caution on this product as their small non-Wrangler SUVs usually suck. Jeep desperately needs to stop selling bad products.

    Jeep needs to be content with selling fewer vehicles and should focus on making a large profit per unit sold. Jeep should adopt a sales model similar to Tesla where most units are special ordered and not bought from existing inventory. Also, since Jeep is now essentially a Wrangler-only brand, they can stop advertising. Wranglers will continue to sell to buyers who have always wanted a Jeep. Some of these buyers will go on to buy a Fancy Grand Wagoneer as well.

    I think a very limited Jeep brand could work well, but I see no chance of that happening. I expect the brand will continue to decline and we will see new, uncompelling Jeep products continually released in a desperate attempt to make something work.

    1. I was thinking something similar. All of Jeeps “good” offerings are more expensive than the average buyer can afford.

      Get rid of the “affordable” Jeeps, because they’re non-competitive crap and just dilute the brand.

      Accept that Jeep is more of a luxury brand and will never be a sales leader and stick to the high profit margin models.

      I also kind of think that Wagoneer could be spun off into its own sub-brand and not necessarily be a “Jeep”.

      1. I could see Wagoneer becoming a sub brand. A Wagoneer line similar to the Range Rover line could work.

        It might help to think of the Wrangler itself as a luxury vehicle. The vast majority of Wrangler owners don’t need the capability, so few are buying them for utilitarian reasons (I am not being judgmental; I owned a JKU that I bought with no intention of serious off roading). If Jeep is fundamentally a luxury vehicle maker, does it even make sense to try to sell budget-oriented vehicles?

      2. 100% agree. They need to cull their lineup. Look at how Subaru did it when they had to rebuild in the 90’s. 3 vehicles: Forester, Impreza, Legacy. Take the Legacy, throw a lift on it, boom – Outback. Take the Impreza, lift it and poke some holes in the hood, boom – Outback Sport.

        The Jeep lineup should be the Wrangler/Unlimited as the flagship, Grand Cherokee L (drop the short wheelbase, this is now their big boy), and the Renegade, but not this one, something more akin to a Jimny – a small, cheap, around-town Wrangleresque unique car with features you expect from the Jeep brand.

    2. Jeep’s only option is to sell a very limited range of products. I would continue to sell the Wrangler/Wrangler Unlimited…”

      And a not-legal-for-street-use Wrangler stripped of non-essentials and equipped from the factory with all the functional goodies off-roaders want.

  15. I have basically no brand loyalty, but the closest would be to Jeep after 3 XJs in the family, two of which we still have, and the other was given away to friends who are still beating on it. That said, nothing they make now is really of interest. It’s not just the off road capability that we like with the old XJs, but the simplicity and ability to take abuse.

    Since Subaru is also way behind on the EV front, I think Jeep has already missed their chance to do well. Other than the Wrangler, there isn’t any need for solid axles and such in any other model. Jeep should have had basic EVs that would have been direct competitors to the Crosstrek and Outback for sale for a couple of years now, and probably could have taken a lot of market share from Subaru. Instead they put their resources into developing some giant expensive SUVs (that are the opposite of any nostalgia for their small, basic old vehicles) that hardly sell.

    They have 8 models, but over 3/4 of sales are from only 3 of those models. Go back to just a few models that actually sell well, and get rid of the failures.

  16. You all forget that Jeep has only been selling PHEV’s in several states. This leaves them selling one of the more expensive Wranglers and Grand Cherokees. Of course they are failing. Jeep is famous for making bare bones offroaders. Complicate them with all the extra batteries, electric motors, etc. and few will buy them. Other than the Wrangler, Grand Cherokee, and the Wagoneer, the brand is stale. Also, offroaders sell well when gas is cheap, but that is no longer the case. Good luck Jeep!

    1. I have a few friends who would never have considered a Wrangler because of their commutes and absolutely love their 4xes for being “free” to drive under 40 miles. As a bigger bonus, one of them took their 4xe Rubicon to an OHV park and was blown away that they got 70mpg driving all day.

      The 4xe is one of the more innovative thing that Jeep is doing and I expect to see them double down on it to stay relevant.

  17. As others have mentioned, Jeeps are expensive. Their best model at the moment, the Grand Cherokee, is about $5k more than all their competitors. I cross shopped an Explorer and GC earlier this year and it was laughable all the stuff you got on an equivalently priced Explorer that was absent on the Jeep.

    1. They seem to have a problem across the board on pricing. Looking at the Gladiator next to the Tacoma, Ranger, Titan and Canyon does not paint a competitive picture.

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