{"id":117684,"date":"2017-07-27T14:47:14","date_gmt":"2017-07-27T18:47:14","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=117684"},"modified":"2017-07-27T14:47:14","modified_gmt":"2017-07-27T18:47:14","slug":"whats-gone-wrong-with-jeep","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2017\/07\/whats-gone-wrong-with-jeep\/","title":{"rendered":"What\u2019s Gone Wrong With Jeep?"},"content":{"rendered":"
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A Jeep Cherokee body rolls down the newly renovated line at the Belvidere plant.<\/figcaption><\/figure>\n

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.<\/p>\n

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\u2019s other brands, including Maserati, to offset Jeep\u2019s weak numbers.<\/p>\n

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Beyond the Headlines!<\/figcaption><\/figure>\n

The question is whether Jeep\u2019s 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\u2019s next-generation flagship Wrangler model begins.<\/p>\n

One person who tries not to seem worried about Jeep\u2019s weak 2017 performance is brand boss Michael Manley, who said Jeep is \u201cexactly where I thought we would be,\u201d during a scrum at a recent 2018 product preview held by FCA at its proving grounds in Chelsea, Michigan.<\/p>\n

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Mike Manley, shown introducing the new Jeep Compass at the 2016 LA Auto Show.<\/figcaption><\/figure>\n

(FCA profit doubles for Q2, even as Jeep takes a tumble. <\/em>Click Here<\/span><\/a> for a look into the earnings numbers.)<\/em><\/strong><\/p>\n

<\/em><\/strong>For his part, analyst Dave Sullivan, of AutoPacific, Inc., agrees, suggesting, \u201cI\u2019m not concerned\u201d by the sales decline once the reasons are made clear. The simple fact, added Sullivan, is that Jeep is at a major transition point as it shoots to boost global sales to 2 million in 2018 \u2013 or four times what it sold a decade earlier.<\/p>\n

As to why the numbers are looking lousy this year, observers point to several factors:<\/p>\n