JeepHalts Production of Jeep Commander due 2 verry poor sales
04-17-2008 | 02:36 AM
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JeepHalts Production of Jeep Commander due 2 verry poor sales
Chain of Command(er) broken
Recent speculation about Cerberus-owned Chrysler LLC halting production of the poor-selling Jeep Commander proved correct, when insiders confirmed that the Commander would no longer be manufactured as of mid-2009.
The Commander, introduced in 2005, sold well in 2006 – its first full year on the market saw sales peak at 88 000 units in the US, but since then sales of the largest Jeep have steadily declined by as much as 43 percent in its home market. At present, the Chrysler brand carries 11 SUV nameplates – six of these are Jeep vehicles and company execs want to scrap vehicles that compete for the same customers.
”Chrysler didn’t anticipate the segment declining as rapidly as it has or that the Commander would steal so many sales from the Jeep Grand Cherokee,” said analyst Tom Libby from J.D. Power & Associates. Last year, Chrysler sold 139 000 Grand Cherokees, down 75 000 from 2006.
Although slow sales is cited as the main reason for axing the Commander, there is also the small matter of company turnaround after the recent split from Daimler, losses to the tune of R18 billion in the last two years and the weakening American economy to contend with. The Commander is also the latest in a string of five vehicles (PT Cruiser convertible, Pacifica SUV, Crossfire coupe and Dodge Magnum station wagon) Chrysler plans to “kill off” to remedy this situation. It is believed Chrysler will cut in excess of 25 000 workers, reduce plant shifts, sell land and close a California design studio as well.
“It makes sense that they are killing it, Jeep needs to exist as a smaller brand,” said Rebecca Lindland, automotive analyst at Global Insight Inc – also take into account that the Commander doesn’t offer much over the Grand Cherokee other than that it measures 100 mm longer, 50 mm Higher and can accommodate seven passengers.
Pundits suggest that the next generation Grand Cherokee will offer a long wheelbase version to make up for the Commander and that it will be built on a chassis shared with Mercedes-Benz – even after the separation of the two automakers many believe this is still possible as chassis development
-Wow. this is a big surprise...isnt it expense 2 just drop a production line like that...? i wonderif this means more sales for the ML...?
Recent speculation about Cerberus-owned Chrysler LLC halting production of the poor-selling Jeep Commander proved correct, when insiders confirmed that the Commander would no longer be manufactured as of mid-2009.
The Commander, introduced in 2005, sold well in 2006 – its first full year on the market saw sales peak at 88 000 units in the US, but since then sales of the largest Jeep have steadily declined by as much as 43 percent in its home market. At present, the Chrysler brand carries 11 SUV nameplates – six of these are Jeep vehicles and company execs want to scrap vehicles that compete for the same customers.
”Chrysler didn’t anticipate the segment declining as rapidly as it has or that the Commander would steal so many sales from the Jeep Grand Cherokee,” said analyst Tom Libby from J.D. Power & Associates. Last year, Chrysler sold 139 000 Grand Cherokees, down 75 000 from 2006.
Although slow sales is cited as the main reason for axing the Commander, there is also the small matter of company turnaround after the recent split from Daimler, losses to the tune of R18 billion in the last two years and the weakening American economy to contend with. The Commander is also the latest in a string of five vehicles (PT Cruiser convertible, Pacifica SUV, Crossfire coupe and Dodge Magnum station wagon) Chrysler plans to “kill off” to remedy this situation. It is believed Chrysler will cut in excess of 25 000 workers, reduce plant shifts, sell land and close a California design studio as well.
“It makes sense that they are killing it, Jeep needs to exist as a smaller brand,” said Rebecca Lindland, automotive analyst at Global Insight Inc – also take into account that the Commander doesn’t offer much over the Grand Cherokee other than that it measures 100 mm longer, 50 mm Higher and can accommodate seven passengers.
Pundits suggest that the next generation Grand Cherokee will offer a long wheelbase version to make up for the Commander and that it will be built on a chassis shared with Mercedes-Benz – even after the separation of the two automakers many believe this is still possible as chassis development
-Wow. this is a big surprise...isnt it expense 2 just drop a production line like that...? i wonderif this means more sales for the ML...?
