Analysts: 7 isn't heaven for Jeep
Jean Halliday
Automotive News
October 22, 2007 - 12:01 am ET
There used to be only one Jeep. Now there are seven. Since 2005, the Chrysler group has added four models to the Jeep lineup — the Commander, Compass, Patriot and Wrangler Unlimited. With the holdover Grand Cherokee, Liberty and Wrangler, the total of seven models is too many, industry analysts say. "How fractionally are you going to slice this pie?" says Todd Turner, president of CarConcepts, an industry consultant in suburban Los Angeles. The seven models must compete with one another for consumer attention and advertising dollars. Turner says at least two newcomers are not adequately differentiated from the other Jeep models. Jeep is the only one of Chrysler's three brands to report a year-over-year increase in U.S. vehicle sales in 2007. Between January and September, Chrysler said, Jeep sold 363,669 vehicles in the United States, a 7.6 percent jump from the year-ago period. John Plecha, Jeep's director of marketing and global communications, says the brand had to expand into new SUV segments to meet market demand. Plecha says most Americans don't drive off-road. That's why Jeep added smaller, more affordable models with smoother rides, he says. Of Chrysler's three brands, Plecha says, Jeep was the natural choice for such an expansion. Nearly half of all Jeep buyers switch from a non-Chrysler brand, he says. Gary Topolewski, a consultant who formerly was chief creative officer on Jeep's advertising account, says Jeep's new ad campaign, "Have Fun Out There," is too cute for the brand's longstanding "invincible, go-anywhere" market position. Wes Brown, president of Iceology, an automotive marketing firm in Los Angeles, says most other automakers position their small SUVs as fun and adventuresome, leaving little room for Jeep to distinguish itself. But Plecha says Jeep is happy with its seven models. "Now we have something for everybody." |
You can reach Jean Halliday at jhalliday@crain.com.
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