By on September 5, 2018

All-new 2018 Jeep® Wrangler Sahara

Without its juggernaut Jeep division, Fiat Chrysler would find itself in deep trouble. We’re talking Mitsubishi, circa 2013, sorts of trouble. On a year-to-date basis, all of FCA’s brands save for Jeep and the low-volume, niche Alfa Romeo took a sales tumble in the United States. It’s the same story north of the border.

In both countries, Jeep is FCA’s knight in shining armor (coming to its financial rescue), only in Canada it’s not enough to boost flagging year-over-year sales. FCA’s volume sank 10 percent in August, while in the U.S. it rose 10 percent. Year to date, FCA’s up 5 percent in the U.S. and down 14 percent in the Great White North.

Why such a disparity between sales directions? It seems to come down, at least partly, to Jeep posting far greater gains in the U.S. than in Canada. Even within the division, there’s quite a difference between what buyers in both countries want.

To sum up: Jeep sales rose 20 percent, year over year, in the U.S. last month, with year-to-date volume up 21 percent. In Canada, Jeep volume sank 2 percent for the month, though the brand still has a 7 percent lead on 2017’s year-to-date tally.

It’s always interesting diving into the buying preferences of both countries. With higher taxes and fuel prices, one would think Canadians would gravitate towards smaller vehicles, thus saving up coinage for the purchase of Heinz beans. Not so. Canucks love their trucks, but there’s a special place in urban and suburban hearts for the ubiquitous mid-range compact crossover with all-wheel drive.

All-new 2017 Jeep® Compass Trailhawk - Image: Jeep

So why is the newly enlarged Jeep Compass not a bigger hit? In the U.S., Compass sales rose 76 percent in August, year over year. Over the first eight months of 2018, the nameplate rose a whopping 173 percent, helped by last year’s changeover period. Throughput on Canadian Jeep lots is much more fickle when it comes to the Compass. While still up 73 percent on the year, August Compass sales fell 25 percent north of the border.

Breaking down the product mix, the Compass accounted for 17.5 percent of Jeep’s U.S. volume in 2018. In Canada, it’s only 13.4 percent of the pie.

Oh, maybe those thrifty Canucks are going smaller and picking up little Renegades to ply back and forth to work, you’re thinking. Far from it. Canadians don’t want a tiny, Fiat-based Jeep. Only 1.7 percent of Jeeps sold in Canada this year were Renegades. In the U.S.? 10.2 percent.

It seems that when it comes to Jeep, the middle of the range is where Canadians’ hearts lie. Wrangler sales accounted for 36.6 percent of all 2018 Jeep sales, whereas American buying preferences saw it make up only 26.4 percent of the mix. The Cherokee, now much closer in size to the Compass, lured 31.2 percent of Canadian Jeep buyers, many of whom no doubt felt the Compass was too small and underpowered (wait a minute…). In the U.S., however, Cherokee sales amounted to 23.5 percent of Jeep’s 2018 volume.

This means a full two-thirds (67.8 percent) of Jeep’s Canadian sales are the responsibility of two models. South of the border, the duo collects just under half of the total volume (49.9 percent).

If you’re wondering about the range-topping Grand Cherokee, Canadians generally find that porridge too hot. Some 17 percent of Jeep sales involve a Grand Cherokee, compared to 22 percent in the United States. Maybe it has something to do with those gas prices.

While it’s hard to resist the go-anywhere appeal of the Wrangler no matter where one lives, it’s clear that Canadian buyers, at least when it comes to Jeep, are a stubborn, stuck-in-their-ways crowd. These buyers want just enough vehicle … but not too much or too little.

[Images: Fiat Chrysler Automobiles]

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19 Comments on “Fiat Chrysler Heads in Different Sales Directions North and South of the Border, But We Can All Agree on Jeep (or Can We?)...”


  • avatar
    PrincipalDan

    Personally I think the Compass is “cheap and cheerful” like the old CJs were before they morphed into the Wrangler and became automotive status symbols.

    However that % of US sales is surprising to me, I just don’t see that many around although the styling is now so close to the Cherokee it is hard to tell the difference.

  • avatar
    S2k Chris

    I contributed to that Jeep number, I leased a new JLU wrangler Sport in August. Have had it 2 weeks and it’s a complete departure from my usual Acura’s, but I love the stupid thing. The most character I could find in a vehicle under $50k.

    • 0 avatar
      redapple

      S2K

      No cold water in the face here but;
      The thing is BRUTAL driving it longer than a 50 mile trip. 200 miles? Kill me please.

      • 0 avatar
        SSJeep

        Nah, the new JL is much more tame on the highway than the outgoing JK. Heck I drove the JK Unlimited on a 12 hour road trip and it wasnt terrible. The JL that I drove is definitely much improved from my JK.

      • 0 avatar
        S2k Chris

        I drove it 350 miles each way over Labor Day weekend to our cabin. Wasn’t great but wasn’t terrible. I have the soft top on, I imagine it will be slightly better with the hard top. Biggest issue was my butt falling asleep but a stop every couple hours (needed by the kids anyways) fixed it. I mostly commute very short distances, and we have my wife’s RDX for most road trips anyways. This thing is just a toy.

    • 0 avatar
      Brumus

      I miss my Wrangler Sport, primarily because it is — as you state — a sharp departure from the indistinguishable rentals I drive while traveling on business.

      And what’s behind the striking disparity between the US and Canada Renegade sales mix?

      • 0 avatar
        gforce2002

        I think it’s because, like the Compass, a reasonably equipped version without incentives here will easily push into the mid to upper $30K’s CDN. Well, equipped, they’re both north of $40K. There are a LOT of other competitive vehicles here that are less expensive.

    • 0 avatar
      SixspeedSi

      Congrats. I’ve never been a huge Wrangler fan, but the JL’s are SO much nicer than the JK! Leases seem decent on them as well.

  • avatar
    APaGttH

    …Without its juggernaut Jeep division, Fiat Chrysler would find itself in deep trouble…

    No, no, no no. Our resident FCA cheerleaders got very upset when I pointed this out yesterday – lolz.

  • avatar
    Asdf

    The Jeep curse strikes again…

  • avatar
    R Henry

    My bet is US Compass sales have been juiced by low-margin fleet sales, while Canadian sales are direct to consumer only. Compass has some major flaws that are meaningless to Hertz but deal breakers for mothers with children.

  • avatar
    Lightspeed

    Compass and Cherokee are far too similar in size/look, almost like Honda’s problem with the Accord/Civic. Jeep should have made the Compass look more like the Wrangler and left the sleek look to the Cherokee and Grand Cherokee.

    • 0 avatar
      Drzhivago138

      From what I’ve heard (this could be totally wrong), the next Cherokee will graduate in size from sorta-compact,-sorta-mid-size to definitely-a-2-row-mid-size.

  • avatar
    deanst

    Driving around the U.S. east coast on vacation it quickly became obvious that U.S. driving choices are much more eclectic than Canadian. Many more cheap, clapped out vehicles and also many more high end Tesla’s and Mercedes. I guess it reflects the smaller level of inequality in Canada, and I suspect the lessor interest in Canada to show off to the neighbours. Mandatory insurance and harsher weather probably also play a role.

  • avatar
    CSJohnston

    I think there are several deeper reasons for the current disparity between US and Canadian sales for FCA than just product and Canadian peccadilloes. Some possible reasons

    1. Product mix: If the Jeep Compass has been a big hit in the US then Canadian dealers may not have had many to sell. Don’t forget, manufacturers make way more on a vehicle in the US versus Canada, especially smaller units and especially when the $CAD is treading water at $0.75. Usually, the US product pipe has to be full before Canada gets a look in.

    2. My anecdotal proof for the above is that I do some marketing work for a few FCA dealers in Canada and we only started talking about Compass in a consistent way in late June. We are now promoting Compass on an ongoing basis and customers are responding to the price point (about $27K for a Sport AWD) and payment ($159/bw). Where a handful of Compass were selling in the first half, the numbers are now in double digits.

    3. Which brings me to my last point: if Canadians have one overriding preference in their vehicles it’s “I don’t care if its cheap as long as it’s cheap”. I cite the Jeep Patriot Sport, the Chevy Blazer 2 Door, the Hyundai Pony, the Dodge Caravan (not Grand Caravan), the Dodge Journey and Ford Ranger Sport as examples. All of those units sold big in Canada and would wager they outperformed US sales by % of share. Jeep sorely missed those Patriot sales in Canada and Compass may be the unit that gets people back in the showrooms if there is the volume.

    Last point (sorry): It would be fair to say that FCA customers are currently a lot more financially challenged than many other brands. FCA has been putting their finance customers into 84 and 96 month contracts since they got out of bankruptcy. They have been flipping customers into new units with high cash backs and inflated trade equity. That all came to a halt in July of 2017. FCA does not have a captive finance arm to my knowledge (they might, I plead ignorance) and they have practically zero lease penetration. They are dipping their toe in the leasing pool but so many of their customers are so underwater on their current vehicles that it will be some time before a lease base takes shape. The majority of lease growth opportunities in the short term will come from conquest sales. I would suggest that is why Ram sales are not taking off faster than they are.

    Thanks. I haven’t posted on this site since Lieberman and Farago were here. So I have made up for lost time,

  • avatar
    Tstag

    Alfa’s sales are improving but only to similar levels as Jaguar. In otherwords they have someway to go to making money.

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