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Posts Tagged ‘jeep sales’

What’s Gone Wrong With Jeep?

Iconic brand’s sales tumble – but is it just a temporary glitch or long-term setback?

by on Jul.27, 2017

A Jeep Cherokee body rolls down the newly renovated line at the Belvidere plant.

It is one of the most iconic automotive brands on the market and, until recently, Jeep could be counted on to deliver sales growth and a steady stream of profits to parent Fiat Chrysler Automobiles.

So, what has gone wrong this year? Jeep volume was down 13% for the first half of the year, with the numbers off 11% in June, and another year-over-year slide expected to be revealed when July numbers are tallied up next week. While FCA reported strong second-quarter profits on Thursday, it took a solid performance by the maker’s other brands, including Maserati, to offset Jeep’s weak numbers.

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Beyond the Headlines!

The question is whether Jeep’s setback is a temporary one or something that could hurt it longer-term. The real test will come in the months ahead, especially once renovation work on the Jeep plant in Toledo, Ohio is completed and production of the brand’s next-generation flagship Wrangler model begins.

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Fiat Chrysler Earnings More Than Double During 2Q, Despite U.S. Slowdown

But debt remains worry for analysts, investors.

by on Jul.27, 2017

A slowdown in Jeep sales has been worsened by ongoing shifts in production capacity.

Fiat Chrysler Automobiles saw its second-quarter net earnings more than double, to $1.35 billion, with foreign demand and improvements by the Maserati brand offsetting weakened sales in North America.

FCA delivered earnings of $0.81 per share, well ahead of the $0.53 consensus forecast by 28 analysts tracked by MarketWatch. The maker’s profit margins reached a record 6.7% for the quarter, up a full percentage point, and margins climbed to 8.4% in North America, despite the slowdown in demand that has particularly weakened the Jeep brand.

More Then Just Numbers!

“It was a strong quarter,” Chief Financial Officer Richard Palmer said in a conference call with analysts and investors. “With the progress we’ve made in the first half of the year, we are confirming our full-year guidance.”

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Jeep Sales Likely to Flatten This Year

Retooling in U.S. may cost some sales while China, Brazil expected to be strong.

by on Feb.22, 2017

FCA is moving production of the Jeep Cherokee from Ohio to Illinois as part of its production overhaul.

After a long run up in sales, Jeep sales in the United States will probably be flat or down slightly this years as Fiat Chrysler Automobiles N.V. pulls back from sales to rental car fleet and moves through a series of new product launches that require closing key plants for model changes.

However, Mike Manley, head of Jeep Brand, also said that the Jeep brand could still post a modest sales increase in Europe, China and South America, particularly in Brazil.

Product News!

In China, for example, sales of Jeep branded vehicles increased by 131% last years to more than 147,000 vehicles. Manley said he expects another big increase in Jeep sales in China this year since it will have three different vehicles, the Cherokee, the Renegade and the new Compass, available for Chinese customers. Jeep will also have the capacity to build 350,000 units in China and could build more as demand increases. (more…)

Fiat Chrysler Earnings Slide 40%

Major product realignment set to take place.

by on Jan.27, 2016

Jeep was one of the few real bright spots for Fiat Chrysler last year, especially in the US.

Fiat Chrysler Automobiles fourth quarter earnings tumbled by 40%, to $2.2 billion, during the fourth quarter, and for the full-year – a decline would have been even more severe without the contribution of exotic sports carmaker Ferrari, which FCA recently spun off.

The automaker’s results were hammered by slowing global sales, especially in both Latin America, though it did finally get its Jeep brand back into contention with the opening of a new assembly plant in China. And Jeep again scored well in the U.S. where plunging oil prices have spurred a surge in demand for utility vehicles.

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The earnings report was released just hours before FCA CEO Sergio Marchionne was set to reveal a product shake-up designed to adjust to changing global market conditions, including the slowdown in the long-booming Chinese market. Among other things, that is likely to mean a slower ramp-up for the long-struggling Alfa Romeo brand, with more emphasis on Jeep and other truck and utility vehicle lines.

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Jeep Sets New Sales Records in 2015

Europe, Middle East, Africa bolster global results.

by on Jan.22, 2016

Jeep posted a 25% sales increase in 2015, led by the success of the Renegade in the EMEA markets.

Full-year Jeep brand sales were up 25% in 2015 for its best annual U.S. sales ever. It was the Jeep brand’s sixth-straight year of annual sales growth. In addition, the Wrangler, Cherokee, Compass and Patriot each posted their best annual U.S. sales ever. The Grand Cherokee had its best annual sales in 10 years. Jeep also posted a 41% sales increase in Canada and posted record sales in Mexico.

However, Jeep’s biggest sales gains came beyond North America as overall sales of Jeeps topped 1.1 million units, according to figures released by Fiat Chrysler Automobiles N.V. During 2015, the Jeep brand set all-time sales record in Europe, Middle East, Africa with 117,620 units sold and volumes were up by 55.7% in comparison with 2014.

The Journal of Record!

Since 2009, Jeep sales have tripled in EMEA, with the region currently ranking second in terms of volume after North America, with a share of 10% of the brand’s global sales, compared with 7% in 2014, FCA reported. (more…)

Jeep Expects to Hit 1.2 Million in Sales in 2015

Company struggles with Wrangler production issues.

by on Jun.29, 2015

FCA is struggling with what to do about increasing the production capacity of the Wrangler's long-time home plant in Toledo, Ohio.

Sales of Jeep-branded vehicles are on track to hit roughly 1.2 million this year, according to the FCA U.S. executive responsible for the nameplate.

Michael Manley, president of the Jeep brand, noted that Jeep sales have increased by 20% so far this year, after topping 1 million units for the first time ever in 2014. The plants belonging to FCA U.S., formerly the Chrysler Group, building vehicles such as the Jeep Grand Cherokee and Wrangler are having difficulty keeping up with the demand from customers, he told reporters at the company’s proving grounds in Chelsea, Michigan.

News You Can Trust!

Sales of the Jeep Cherokee, which was introduced last year, and the sales of the Jeep Renegade introduced this past spring are also doing well in the U.S. The Renegade is proving very popular with European customers and sales of other Jeep products also remain strong in Europe. (more…)

Jeep Tracking to Surpass 2014’s 1 Million Units Sold

Marchionne rewarded for success with $8 million earnings.

by on Mar.06, 2015

Sergio Marchionne earned more than $8 million in 2014 in salary and other compensation.

After rolling up sales of more than 1 million units in 2014, the Jeep brand is off to a fast start in 2015 as it records increases of more than 20% for the first two months of the year despite getting drubbed by Consumer Reports.

Moreover, the newest member of the Jeep family, the Jeep Renegade, is just beginning to reach dealers and showrooms in the next several weeks. “They’re outside the fence,” noted Art Anderson, FCA US chief engineer and vehicle line executive for the Renegade, during an interview webcast on AutoLine’s “After Hours” program this week.

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The Renegade is the first Jeep vehicle produced outside the U.S. and while FCA US executives insist the launch is on schedule, Anderson acknowledged the ships carrying the first batch of Renegades from Italy to the west did run into some foul weather. However, the ship was unloaded in timely manner once it reached San Diego, he said. (more…)

Chrysler Acquisition Hammers FCA Earnings

But U.S. operations also drove revenue growth.

by on Jan.28, 2015

FCA Chief Executive Sergio Marchionne's acquisition of Chrysler carried a high cost last year.

When it comes to the American half of its newly merged company, investors will have to decide whether the glass is half empty for Fiat Chrysler Automobiles.

That’s because the cost of completing the acquisition of suburban Detroit-based Chrysler bludgeoned the trans-Atlantic maker’s earnings. But the Chrysler side also delivered a healthy 11% increase in FCA’s overall revenues.

By the Numbers!

Legally headquartered in the Netherlands, Fiat Chrysler is reporting that its 2014 net profit fell by two-thirds, to 632 million Euros, or $718 million. For 2013, the maker had a restated net of 1.9 billion Euros. For the final quarter of 2014, the maker earned 420 million Euros, down from 1.2 billion during the same period in 2013.

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Renegade to Lead Jeep’s Global Expansion

Jeep’s Manley expects big results from little Jeep.

by on Jan.20, 2015

The Jeep Renegade - shown here at its Geneva debut - will be a critical piece of FCA's global focus.

The new Jeep Renegade holds the key to the brand’s global expansion.

Mike Manley, president of the Jeep brand, said that Jeep sales have tripled during the past five years expanded by revitalizing and renewing the existing product portfolio. The sales growth surprised many observers who thought it was unlikely or even impossible for Jeep to sell 1 million vehicles, the target set out in the first five-year plan laid out by Fiat Chrysler Automobiles chief executive officer Sergio Marchionne last January.

The Leader in Global Automotive News!

The Renegade, however, represents a genuine expansion of Jeep portfolio, Manley said. It also represents Jeep’s coming of age as a true global brand. (more…)

Jeep Closing in on 1-Million Unit Sales Mark

Brand’s sales up more than 40% through November.

by on Dec.29, 2014

Jeep sales were up 44% through November. The Renegade is helping push Jeep toward sales of 1 million units in 2014.

Global sales of the Jeep brand are expected to top 1 million units for the first time ever when the numbers are added up by Fiat Chrysler next week. However, the company isn’t resting on its laurels, FCA is charging ahead with ambitious plans for the future.

FCA Chief Sergio Marchionne laid out the goal of 1 million units for Jeep during the Detroit Auto Show at the beginning of 2014. Through November, the brand’s sales are up 44%, which puts it on track to hit the mark.

The Leader in Global Automotive News!

In fact, the company’s massive plant in Toledo, Ohio, hit an all-time production high this year, surpassing 500,000 vehicles built just a couple of weeks ago. While much of the news from Jeep has been good, the brand has come under some new criticism from Consumer Reports. The Jeep Wrangler Unlimited wound up at the bottom of CR’s New-Car Value ratings. (more…)