Jeep idles production line after dismal sales

JEEP furloughed its Wranger production line in Toledo, Ohio and its Grand Cherokee line in Detroit last week because of plummeting sales that were down 17 per cent in August compared to July for the Wrangler and something similar for the Grand Cherokee.

Media reports out of the US say Jeep dealer inventory issues are so bad the company paused production.

Sales statistics show the Jeep brand seems on a downward slide into the red at the moment as are other Stellantis brands Ram and Chrysler possibly driven by price hikes and minimal buyer incentives compared to other makes.

According to a report in Motor Trend, auto industry heavyweight Cox Automotive says that Jeep has a roughly four-month (120 days) supply of vehicles on dealers’ lots, compared to the 68-day average.

“Should the trend continue it seems like Jeep will need to trim prices and throw cash on hoods to move Wranglers and other Jeeps,” the report said.

Media outlet Reuters this week said the lines have since been restarted after “adjustments”, but the Stellantis company would be looking at ways to spur sales of the once popular and evergreen Wrangler that has piled up in dealer holding yards and in showrooms unsold.

On top of this, the National Highway Traffic Safety Administration (NHTSA), the US government agency responsible for creating and enforcing federal motor vehicle safety standards, is investigating what it describes as unexplained under-bonnet fires in Jeep Wrangler and Gladiator models to determine whether a recall of some 781,000 affected vehicles is warranted.

And yet another Stellantis brand, Ram Trucks is under a cloud issuing a recall on over 1.2 million units (1,227,808) of its 1500 pick-up truck, the vehicles found to have a stability control and anti-lock braking system issue that could see the important safety technology deactivate inadvertently 

After earlier price hikes US auto industry pundits are predicting big incentives from Stellantis brands to get sales moving again with buyers no doubt waiting in expectation.

All of this doesn’t point to an overarching slump in the US new car market as, for example, the Ford Mustang is racking up huge sales, up 55 per cent in August and nearly 18 per cent YTD.

Though it is the sole “car” in Ford’s US inventory Mustang appears to be selling its socks off attributed to a number of things not the least being the model’s natural appeal but also because the S650 generation coupe and convertible are still fresh to market.

It only lobbed earlier this year in the US (this month Down Under) and taps an underlying taste for a powerful V8 accentuated by available, new high-profile and high-performance variants like the intimidating GTD and the powerful Dark Horse models.

Mustang competitors have fallen off the perch of late… the Dodge Challenger is dead with the last examples built last December and availability dwindling.

The upcoming Charger Daytona coupe and sedan will not be direct competitors for the “Stang” as they have moved to turbocharged straight six-cylinder and BEV powertrains and the Chevy Camaro is also done and dusted, allegedly forever.

No wonder the Mustang is rocking out dealer doors… it’s the last pony car standing.