Jeep committed to driving on the right, receiving disappointing sales

Jeep’s Global boss Christian Meunier said the US brand wasn’t selling as well as it did in Australia, but it was turning around.

“I think we are doing much better than before. Obviously there’s a semiconductor problem. Missing the Wranglers, Grand Cherokee is expected to launch earlier [but] Mr. Meunier said.

“I think we are doing much better than before. I think we changed quite a few things, I think the house involvement is better. Positive thinking is there.

“I think we’ll sell about 8000 units this year,” he added, noting that he has his own projections – which he didn’t specify – that he thinks the brand can reach.

“[8000 units is] Not quite what I think is a good number for Jeep,” he noted.

Jeep sold 7,762 vehicles in Australia last year, up 35 per cent from the 2020 figure but far below its glory days. Grand Cherokee neck and neck with Toyota LandCruiser Prado in the sales race.

In 2014, Jeep hit an all-time high in Australia with sales of 30,408 vehicles and a market share of 2.7%, but unfavorable exchange rates and inadequate after-sales service drove the numbers down. This declines every year until 2020.

Mr Meunier said the brand was fully behind the Australian branch and was committed to upcoming right-hand drive versions The Recon and Wagoneer Trams WILL.

He also confirmed right-hand driving is part of the brand’s broader electrification plan, and when asked if this applies to every model, he replied: “Pretty much.” .

“The driving strategy on the right is very clear. We are investing in Japan, Australia, New Zealand, South Africa which is becoming quite a serious market for us now. So we’re going back to Australia, South Africa,” he said.

“The right steering wheel is the key. We can be profitable when we go on the right hand side. As long as you bring the right product with the right powertrain in the right segments. “

Australia isn’t the only market where Jeep has struggled, with Mr Meunier admitting the UK market has been “struggling for a while” – something it has moved to overcome by converting Compass sourcing from India, the origin of the Compass in the Australian market, to Italy.

Markets such as Japan and the UK will also get the new Avenger EV in right-hand drive, which will become the brand’s smallest model. It’s not locked in Australia yet.

Mr. Meunier said: “Australia has come a long way from two or three years ago in terms of electrification.

“When I spoke to the local team, it was, ‘uh, electrification, not really exciting’. And I kept questioning, questioning, questioning, and looking at what happened in that moment.

“And we see New Zealand being hundreds of percent ahead. And Australia is catching up.”

Jeep cited raw material costs and inflation as reasons it sudden price increase for models like Fighter and WranglerMr. Meunier also noted, “it’s clear that we’ve had some price recovery to take in our profits”.

But Jeep’s boss also defended the premium boost of the brandhas seen the entry point of the range rise to just under $40,000 – a far cry from the days of bearish Compasses and Patriots.

“One of the reasons why Australia is really struggling is the pursuit of volume. They chased volume and failed to achieve it,” said Meunier.

“They are pushing metal. We didn’t focus on the brand. Didn’t make much money. Agents don’t make money and it’s a vicious cycle.

“What we did is we stopped all these entry versions. We made it more premium. We won’t go after the Koreans. We will not pursue the Chinese. We are not a mobile brand. We sell risk.”

He said prices in Australia were “quite in line” with prices in Japan, Europe and North America.

Jeep will introduce a “premium extension” of the brand with the Wagoneer sub-brand, previewed by the Wagoneer S EV that will go into production in 2024.

Mr. Meunier likened the division between Jeep and Wagoneer to that of a Land Rover and a Range Rover, as Wagoneer-branded models will be sleeker, more upscale and will be sold through Jeep dealers, with the aim of purpose of excluding buyers from other luxury brands.

Jeep bosses say their 4xe plug-in hybrid models have brought new people to the brand who had never been interested in Jeep.

For example, Mr. Meunier said 60% of Wrangler 4xe buyers are new to the brand, and many have chosen it as a second vehicle in their garage alongside vehicles like Teslas.

The Wrangler 4xe is still out of the question for Australia.

“I think many manufacturers have failed miserably with plug-ins. And I’m not going to tell anyone, but you know who they are, they brought a lot of plug-ins, plug-ins didn’t bring power. They did not bring more possibilities. Mr. Meunier said they were a downgrade rather than a V8, or a V6, or a diesel.

“So these brands, I think, failed because they didn’t convince customers to buy it, especially at the high end, to get downgraded. We are bringing more value to our customers with 4xe. “

He admits as EV range and pricing improve, however, PHEV sales will inevitably decline.

While Jeep has so far confirmed only one 4xe model for Australia – the Grand Cherokee, due out in the first half of 2023 – it offers 4xe versions of the Compass, Extend and Wrangler in other markets, while it confirmed Electric Gladiator is coming.