 Jeep Excess Inventory Hurting Compass Sales? |
We've recently been reading about the glut of Chrysler vehicles that are sitting on dealer lots and at Chrysler assembly plants and it looks like these unsold vehicles are partly to blame for the lackluster Compass sales.
This Forbes.com article lays it all out nicely - they summarize that the issue is due to Chrysler Group is trying to sell these vehicles using various dealer and customer incentives. It seems that with all the incentives on current Libertys and Wranglers, their prices become competitive with the lesser priced Compass.
It's estimated that Chrysler Group needs to sell about 6,000 Compasses per month in order for the vehicle to be profitable. It seems unlikely that this will be possible until current inventory issues are resolved.
If you had a choice, what would you purchase? A Compass or a Liberty for $1K or $2K more? If you've been thinking about picking up an 2006 Jeep - now might be a good time to visit your dealer.
By the way, if you want to see some of the thousands of excess vehicles, just take a flight to Detroit and look down as your flight is landing at the acres of shiny new Chrysler, Dodge, and Jeep vehicles in parking lots surrounding the airports.
Digg This Story
Save This Page to del.icio.usReader Reactions
The comments are owned by the poster.
We aren't responsible for their content.
You must login or register to post a comment.
| Poster | Thread |
|---|---|
| skywater55 | Posted: 2006/10/25 13:25 Updated: 2006/10/25 13:25 |
Just can't stay away   Joined: 2006/8/28 From: Posts: 85 |
 Re: Jeep Excess Inventory Hurting Compass Sales?I dont understand DCX. They are spending big $$$ on advertising for the new wrangler but ya try to buy one and ya have to pay a premium over sticker at least where im shopping....no vehicle is worth paying over sticker...none nadda...ive seen a few on the roads and wonder how much these folks had to pay to get one....
|
| Poster | Thread |
|---|---|
| jerryjeep | Posted: 2006/10/24 15:38 Updated: 2006/10/24 15:38 |
Not too shy to talk  Joined: 2006/8/28 From: Southeast, Michigan Posts: 32 |
Re: Jeep Excess Inventory Hurting Compass Sales? Josephus may be on to something with his comments... Maybe we have the voice of the Customer saying that the Compass is not really a Jeep or that it is not priced correctly in the marketplace for what it is. The sales figures of 6000@ month would work out to around one per month per Dealer in the US network, that sounds pretty pathetic for a new product. The advertising in our area is definitely weak for the Compass and there seem to be only a few on the streets. Toledo is a strong JEEP market yet nobody I've talked to is very excited about the Compass. More questions on the Sales and Marketing strategy need to be answered at the executive levels at DCX.
 |
| Poster | Thread |
|---|---|
| Josephus | Posted: 2006/10/24 13:31 Updated: 2006/10/24 13:31 |
Home away from home  Joined: 2005/7/18 From: Pennsylvania Posts: 243 |
Re: Jeep Excess Inventory Hurting Compass Sales? I personally think the Compass is a weaker execution of a weak concept. Jeep should have been dedicating it's resources to improving mileage on existing products to keep them competitive in their established market, instead of expanding into an ultra-competitive market with a marginal product.
It all comes down to what my pappy taught me. "If you are going to do something, do it the best that you possibly can." and "Buy the best there is, and you'll never regret it." Jeep Compass is neither of these. The 3.8L in the Wrangler is slipping down a notch too. |
|
| Poster | Thread |
|---|---|
| l2fiore30089 | Posted: 2006/10/24 11:01 Updated: 2006/10/24 11:01 |
Just popping in  Joined: 2003/11/5 From: Posts: 1 |
Re: Jeep Excess Inventory Hurting Compass Sales? Last week I went to a dealership to buy a new Compass. Salesman offered a new 2006 Pacifica for Thousands LESS than a Compass with the same features. Didn't want that big of a vehicle but made me wait on the Compass for a better deal.
|
| Poster | Thread |
|---|---|
| hal2814 | Posted: 2006/10/24 8:09 Updated: 2006/10/24 8:09 |
Quite a regular  Joined: 2006/5/23 From: Posts: 47 |
Re: Jeep Excess Inventory Hurting Compass Sales? Q: Would you purchase a Compass or a Liberty for $1k to $2k more?
A: No. Could it be that the Compass isn't selling because people just don't like the Compass? The initial slow selling of the Commander surprised me as it was basically a Grand Wagoneer update. The initial slow selling of the Compass doesn't surprise me at all. I have a feeling that this vehicle will always be the red-headed stepchild of the Jeep lineup. I also have a feeling that anyone who is seriously considering such a vehicle will just wait until the Patriot comes out or get something else entirely. |
|
|
|
