Chart Of The Day: Here's What The Jeep Cherokee Is Up Against In 2014

Derek Kreindler
by Derek Kreindler

With the first month of 2014 sales nearly wrapped up, we’ll soon get our first look at how the Jeep Cherokee has fared, following the initial shipment of delayed units. Much has been made of the Cherokee selling 10,000 units in November and 15,000 units in December: it was a great storyline for Chrysler to promote in the run-up to NAIAS, and one for the hometown media (in both Detroit and Toledo) to rally around. Left out of the cheerleading was the fact that these figures accounted for the 25,000 units reportedly sent to dealers in one fell swoop. Can you say “pent up demand”?

But even if the Cherokee continued to sell at that pace – say, 15,000 units per month as an optimistic projection, where would that place it in the larger picture of the small crossover segment?

Small crossovers may not be popular with enthusiasts, but it’s impossible to deny how important this is to the industry at large. In 2013, five of the top 10 best selling SUVs in America were small crossovers, while the Honda CR-V and Ford Escape (the top selling small crossovers) were the 8th and 10th best selling vehicles in America. Together, those two made up just under 1/3rd of the segment’s volume. Add in the third place Chevolet Equinox and fourth place Toyota RAV4 and you have 57 percent of the segment represented in just four nameplates.

The graph above represents the uneven distribution of the segment’s sales, with the top four nameplates sitting comfortable, while a number of small players compete for scraps at the bottom of the graph. This isn’t unique in the market either – Juan Barnett’s analysis of the midsize market shows a somewhat similar distribution of nameplates clustered at the top and bottom. Like the midsize segment, the small crossover category is a crowded one, and the addition of the Cherokee just adds to the competition.

Assuming the 15,000 unit pace holds through 2014, that would give the Cherokee 180,000 units at year end, placing it above the Nissan Rogue (which sells roughly 160,000 units) but below the RAV4. In that context, the 15,000 unit per month figure being bandied about is far less impressive, but it’s important to note a couple things.

The Toldeo, Ohio factory that builds the Cherokee is capacity limited to about 250,000 Cherokees per year. Even running flat out, Jeep wouldn’t be able to catch the CR-V or Escape. Considering that some of the 250,000 units will go to Canada and other global markets, 180,000 is a respectable number. Even more significant is what the Cherokee will do for the Jeep brand compared to the Liberty (as demonstrated in the chart below).

The comparison with the Rogue will be an interesting one. In the same way that the 200 should sell at the level of the Optima, Malibu or Sonata, the Cherokee and Rogue will likely inhabit the same stratosphere in the segment. The new Rogue has also undergone Nissan’s patented process of making cars suitably bland for American tastes, through their expanded dealer network. Similar to the Altima’s gradual climb through the midsize ranks, the combined capacity for 180,000 units of the Rogue (100,000 in Smyrna, Tennessee and 80,000 at the Renault-Nissan facility in Korea), combined with additional units of the Rogue Select (which Nissan will likely not break out from Rogue sales) should enable to Rogue to post higher sales figures by the end of 2014. On the other hand, don’t expect things to change at the top.

Derek Kreindler
Derek Kreindler

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  • VenomV12 VenomV12 on Jan 22, 2014

    For as maligned a vehicle as the Cherokee was, I see a ton of them on the road already. I personally don't think they look that bad at all, especially in the darker colors.

  • Fred Fred on Jan 23, 2014

    Saw it at the Houston car show last night, it's pretty nice and about the right size for me and I'm not a lover of SUVs. In all black the front end details are kind of lost. People were checking it out so it might sell well.

  • Syke Kinda liked the '57, hated the '58. Then again, I hated the entire '58 GM line except for the Chevrolet. Which I liked better than the '57's. Still remember dad's '58 Impala hardtop, in the silver blue that was used as the main advertising color.
  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • Ravenuer The rear view of the Eldo coupe makes it look fat!
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
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