Chrysler Group LLC CEO Sergio Marchionne threw down the gauntlet for Jeep during an interview on Detroit’s WJR-AM at the 2014 Detroit Auto Show, proclaiming that the Rubicon-rated brand will move 1 million units onto the trails and highways by the end of this year.
Global sales of the iconic off-road brand rose 4 percent in 2013 for the fourth consecutive year, topping out at a record 731,565 units moved. Though Marchionne is confident Jeep will make his stated sales goal, brand president Mike Manley is taking a more conservative stand, stating that the figure might come by 2015 rather than 2014.
However, Manley believes the new Cherokee could bring the remaining 300,000 or so units to the table by the end of the year should the SUV do well at home and abroad. Sales of the Cherokee in the United States, in spite of its face, are 15 percent to 20 percent ahead of Chrysler’s expectations after only two months in the market; total U.S. sales account for 67 percent of Jeep’s overall global sales.
As far as the rest of the world is concerned, Fiat has plans to build a subcompact Jeep in Italy for sale in Europe in 2014, with arrival in the U.S. due sometime in 2015. The parent automaker also plans to expand production in America, as well as in China and Brazil.
“Sales of the Cherokee in the United States, in spite of its face, are 15 percent to 20 percent of Chrysler’s expectations after only two months in the market”
Could you re-state that? Do you mean that Chrysler expected the Cherokee to sell 80% more units than it has? Or that after two months on the market, they’ve already met 15-20% of the annual sales goal for the Cherokee? Or 15-20% of the annual sales goal for Jeep?
I would read that as Chrysler expected the Cherokee to sell 500-667% more units than it has.
Yeah, that’s definitely a bit awkward. Based on context, I take it to mean that the Cherokee, in the two months it’s been on the market, has already sold close to 20% of Chrysler’s 12 month goal.
Went down to whack Scrambles with my new rubber mallet; sentence now says “Sales of the Cherokee in the United States, in spite of its face, are 15 percent to 20 percent ahead of Chrysler’s expectations after only two months in the market.”
@Cameron, you really need to stop buying your “Staff-bots” from Dr. Clayton Forrester’s post MST3K yard sales.
Alas, that’s all we can get with our Bitcoins; IBM thinks our money’s “dirty.”
Dammit Rarity, are you the reason no one can buy an R9-290x for anywhere close to list?
While I may disagree on product, taking Jeep global was definitely a wise move which for whatever reason Daimler wasn’t very interested in doing.
i dont think people will be fighting at the doors for the new pig ugly cherokee mr italy.
Marchionne has never announced an unrealistic forecast before. No, that’s not his style …
Ive seen a few of these new “cherokees” out on the road. They look a little bit better in the flesh but not much. The styling is actually a smart move considering that most of the people who would even consider a fwd/awd 4cyl crossover is going to cross shop the segment. This look is futuristic and more likely to stay relevant for a longer period of time for a budget suv shopper. They want their car to look new for longer.
Im not a big fan of this model but I am a big fan of the Jeep brand overall. If it keeps jeep above water im ok with it.
It looks pretty hideous. I had a ’98 Cherokee, and its looks seemed to stay relevant a long time, with an honest simplicity about it all, but this new look with the squinty headlights and that rictus grin under the bumper just seems like it looks instantly dated. I guess, though, the sales numbers will tell the tale.
Yes, let’s compare the new Cherokee to one from 16 model years ago. OMG! It looks different! My guess is that you don’t look like you did 16 years ago either. I know I don’t. Things change, evolve. It’s ok.
Aerosmith wrote a song about Sergio’s delusion…kindly YouTube “Dream On”…
Can Jeep really be considered an off-road brand any longer? With only a single unique model Sergio has watered Jeep down so much it’s really nothing more than an exercise in badge engineering at this point.
You misunderstand the term “badge engineering.” None of Jeep’s models qualify, and the brand has more off-road cred than any other save for, perhaps, Land Rover.
Maybe badge engineering is a little strong but the majority of Jeep’s vehicles are warmed-over compact FWD cars with no more off-road capability than the average Subaru. Jeep has only 2 models I would ever consider taking on an easy off-road trail and one of those only just.
I thought the staff bots were supposed to steer clear of snark like “in spite of its face” in purely news posts?
Call me crazy, but I’d take a look at a Patriot with the Cherokee’s drive train. Maybe even a smaller motor coupled to that transmission and dual range set up. Assuming of course the price didn’t get too silly along the way.
Chrysler is in a unique position with Jeep. They have a solid, loyal core that will continue to buy ancient appearing products like the Wrangler. In fact, that stodgy appearance of the Wrangler actually plays well with the new stuff, because the perception is there’s still the solid, traditional Jeep mechanicals underneath even the most outré styling.
If they can afford it, doing the futuristic styling with new models, yet keeping the simple, two-box Patriot around by restricting incremental updates to the interior and drivetrain, could be a successful long-term strategy which covers all the SUV bases.
I wonder how profitable Jeep is at existing margins and volumes? Land Rovers strength is that they make high margins on volume of 350000 per annum. They will add at least another 200000 to that over the next 5 years so will do roughly half of Jeeps volumes but I suspect at much higher margins.