Why Jeep is on Pace for Record Sales

Jeep’s 2015 continues to get better. November saw another increase in sales, a monthly trend that’s continued over the past 15 years. Furthermore, the brand is expected to break personal global sales records, and they’re hoping these numbers will only continue to grow in the coming years.

_We all know the brand is extremely popular (you can find Jeeps in Miami or Alaska), but why does Jeep continue to succeed and set record sales? Continue reading after the break to learn why… _

It’s been a great year for Jeep, and that sentiment has been confirmed in the past few weeks. According to a report by Alisa Priddle of the Detroit Free Press , Jeep is expected to break single-year sales records. After having sold a personal record 1,017,000 vehicles in 2014, the brand has already sold 1,013,000 vehicles through October of this year. CEO Michael Manley said global sales have increased 22 percent over the past year and 24 percent in the United States.

Furthermore, Fiat Chrysler, Jeep’s parent company, saw a three-percent increase in United States sales in November, the best one-month gain since 2000 (according to John Irwin of AutoNews.com ). With 175,974 vehicles sold last month, the company also recorded their 68th consecutive month of sales gains. Jeep’s sales rose 20-percent with 68,903 units having been sold, the best November the brand has ever seen.

Each of the Jeep vehicles saw gains in November, while the Cherokee, Compass, Patriot and Wrangler each recorded their best November sales ever. The Compass led the way “with a 19 percent year-over-year increase in sales to 4,886 units,” and the brand sold 7,345 Renegades in the compact SUVs first November on the market.

“Jeep vehicles have now recorded sales increases both globally and in the U.S. market for four consecutive years, with back-to-back global sales records,” said Mike Manley, the President and CEO of Jeep Brand, Chrysler Group LLC (via FCA’s website ). “Customers clearly appreciate the new Jeep vehicle lineup that delivers vastly improved on-road driving dynamics and fuel efficiency, in addition to legendary, benchmark 4×4 capability.

“We are especially pleased with the performance of Jeep Cherokee, which sold more than 25,000 units in its first two months in dealer showrooms. We achieved this record while being out of the world’s largest SUV segment for three-quarters of the year. With a full lineup of capable, efficient SUVs – and with Cherokee arriving in Jeep showrooms across the globe – we expect to continue our sales momentum in 2014.”

These are all very impressive numbers, but what do they mean? How has Jeep accomplished such astonishing, unprecedented, consistent sales gains? There’s no definitive answer, but there are several contributing factors that certainly played a role.

Priddle attributes the success to the brand’s popularity in North America, as well as the release of the brand new Jeep Renegade, which has been a hot sell since it hit the market earlier this year. Overall, the brand has sold 45,000 Renegades in the United States since the vehicle’s release, but the subcompact crossover SUV has also been a hit globally. Priddle notes that the vehicle is responsible for a 72-percent increase in European sales. We can expect similar sales in Japan, where the Renegade was recently released, and in China, where the vehicle hasn’t yet launched.

Of course, the increase in sales (particularly in the past few months) could also be due to customer’s anticipation of the likely “quarter-point interest hike this month by the Federal Reserve.” The hike would make these vehicles more expensive, so informed customers rushed to their local dealership to buy their vehicle before the increase in price.

“Many consumers may also be sensing the inevitable hike in interest rates and looking to make a purchase before financing costs rise,” Karl Brauer, an analyst with Kelley Blue Book, told Greg Gardner of the Detroit Free Press .

The sales may also be skewed by the ridiculous Black Friday sales. The auto industry invested $1.098 billion into advertising from the beginning of October through the end of November, which was an increase over the $880.3 million spent last year.

“Black Friday has become a much bigger part of the auto industry over the last several years,” Nissan’s U.S. sales chief, Dan Mohnke, told Bernie Woodall of Reuters.com. “It used to be a nonautomotive retail holiday but now it is becoming more and more an automotive retail holiday as well, feeding right into the holiday season which traditionally has been December and luxury sales.”

So what’s the future look like for the brand? It’s very bright. Not only is Jeep’s 75th anniversary fast approaching, but the company also has plans to add the Jeep Grand Wagoneer SUV by 2018, a compact crossover replacement for the Compass and Patriot, and a potential Wrangler pickup. Based on all of these factors, we can only expect that these sales should continue to grow. Furthermore, the brand is aiming for 1.2 million vehicles sold for all of 2015, and they hope to increase their global sales number to 1.9 million units by 2018.

“It is a true American icon,” Manley said, which has certainly been proven by the record sales.

The Grand Wagoneer has been regarded as a three-row “upscale” SUV, and the brand hopes that the vehicle will compete with the equally-luxurious Land Rover. Manley said the brand needs to be in the segment, confirming a sentiment we’ve heard for some time.

When it comes to the compact crossover, Manley was vague regarding the style. Would it resemble the curvy lines of the Compass, or would it be boxier like the Patriot? Also, what will it be called?

“Both Compass and Patriot are very strong names for us,” Manley said. “In international markets Compass is stronger than Patriot. Here in the U.S., Patriot is stronger than Compass. So we’ve got two viable names we could use…but no decision yet.

“I’m not wedded to either name. I like both of them.”

Could the brand continue using different names for different regions, as they already do with a number of their popular models?

“You might see on a global basis the use of both names,” he told Priddle.

As the writer notes, a decision needs to be made soon if the brand hopes to release the vehicle in 2016. The CEO said a final decision would be made in early 2016, but the public won’t know about the decision until the public unveiling of the car.

Finally, the upcoming Wrangler has been anticipated for some time, and while it’s been confirmed, the brand’s executives have been pretty tight-lipped about the project.

“I am a huge advocate for Wrangler pickup in the lineup,” said Manley who has wanted one for many years. “It has a historical place in our brand.”

However, we shouldn’t get too ahead of ourselves. Michelle Krebs, a senior analyst for Autotrader.com, warned that these sales aren’t necessarily guaranteed to continue.

“While we expect a possibly record-setting December and another strong year in 2016, the prospect for interest rates edging higher while personal incomes are not, along with rising incentives, are caution lights we are watching,” she said.

Previous Post New Jeep Pickup Truck Confirmed Next Post Jeep Unveils Commemorative Red Rocks Concept