Jeep is counting on the new Cherokee to help continue its streak of year-over-year sales growth, but the brand is facing production related challenges that could torpedo their quest for three consecutive years of sales growth.
Despite adding jobs at their Toledo plant (including 200 new positions for Wrangler production and a third shift to build the Grand Cherokee), Jeep is facing capacity constraints.
Jeep’s Mike Manley told Automotive News that expansion was inevitable if the current sales pace kept up
“At some stage you get to a point where you have to make significant investment to [add] capacity,” Manley said, “and when we get to that point, we’ll be able to make that announcement.”
Meanwhile, the upcoming 2014 Cherokee is expected to play a big role in Jeep’s growth this year (Chrysler is targeting 800,000 units globally, up from 700,000 last year), but AN is reporting that the May 23 production start date will be delayed by two weeks. That, plus refreshes to the Compass, Patriot and Grand Cherokee (which feature, among other things, new transmissions) and the cessation of Liberty production, have led to a sales decline over the past five months.
Tagged as Capacity, Chrysler, Jeep, Jeep Cherokee, Jeep Grand Cherokee, Jeep Liberty, production, Sales
Probably not in Toledo though.
Saying the words, “Jeep built by Fiat” makes me feel like I just chewed a mouthful of moldy earthworms.
This is harder to take than Jeep built by AMC or Jeep built by Renault?
Good point. I guess saying Jeep is enough by itself.
Isn’t AMC a chain of cinemas and Renault a cognac brand? Why would they have owned Jeep?
AMC = American Motors Corporation, defunct.
Renault = French manufacturer, once owned American Motors Corporation.
And to clarify further, both thus owned the Jeep brand in the past. Early XJ Cherokees were even available with a Renault turbo-diesel.
Perhaps it goes against Jeep’s audacious, trailblazing philosophy, but it doesn’t seem entirely prudent to lean so heavily on a brand-new, untested, and extremely polarizing-looking model. I’m not saying the Cherokee won’t find buyers (riddled with recalls, the swoopy new Escape is cleaning up), but never in the numbers the old Liberty used to sell in (130K or more per year from ’02 to ’06). With only a few cosmetic tweaks, the Cherokee could be must less scary and strange looking, without appearing too safe or dull.
I do find the six-eyed look a bit unsettling.
I owned an Escape for a while, and will be happy to use that kind of vehicle again, whenever it happens to be the right tool for the job at hand. This Cherokee would probably fit the bill for me, though, were that to happen.
As FIAT takes over more Chrysler Products from design to production, People in the USA will have to get used to it, is this possible?
All north American jeeps will be built in Toledo Ohio, per Sergio during a speech there last year, look for a massive massive expansion to be announced soon.
Except for the Grand Cherokee. That’ll remain at Jefferson North in Detroit for the forseeable future.
Correct
Question – Is the Cherokee to built at the Belvidere plant, along with the Dart?
Judging from the low number of Dodge Darts I see on the road, I can’t imagine that the Belvidere is any where close to being at full capacity.
The Cherokee will be built in Toledo.
Retina-burning abomination.
This thing gives the JUKE a run for the money for FUGLY. saw juke the other day man i can’t say how much i think that thing is ugly. these small UTES all look like sneakers to me. all curvy and sportified.