'11 Grand Cherokee Order Mix

[XDCX]

Marchionne recently commented that he's proud of the '11 Grand Cherokee and stated "This is the best vehicle we've made in the history of Chrysler."

He also acknowledged that Chrysler got the initial order mix wrong. He stated "Between the low and high end, we got that completely wrong."

While Marchionne acknowledged the mix problem he didn't elaborate on exactly what the problem was or what measures Chrysler's taken to fix the issue.

From a dealer's perspective, what was the problem with the initial order mix for the '11 Grand Cherokee? What does Chrysler need to do to fix it?

[XDCX]

I thought I'd bump this thread to see if there were any comments.

Concerning the mix, I just searched all inventories within 100 miles of Seattle and was surprised that 75% are either Laredos or Laredo Xs. Only 25% were Limited or Overlands.

Based on Marchionne's comments and Chrysler's history I assumed the mix was too rich, but that doesn't appear to be the case.

Maybe the bigger issue is availability - there are only 40 of the '11 Grand Cherokees available within 100 miles of Seattle.

[jdemonto]

We have 85 available, hardly any overlands....4 have 6 in "c"status

Jason

Originally Posted by XDCX

I thought I'd bump this thread to see if there were any comments.

Concerning the mix, I just searched all inventories within 100 miles of Seattle and was surprised that 75% are either Laredos or Laredo Xs. Only 25% were Limited or Overlands.

Based on Marchionne's comments and Chrysler's history I assumed the mix was too rich, but that doesn't appear to be the case.

Maybe the bigger issue is availability - there are only 40 of the '11 Grand Cherokees available within 100 miles of Seattle.

[XDCX]

Originally Posted by jdemonto

We have 85 available, hardly any overlands....4 have 6 in "c"status

Holy smokes, so that's where all the GC's are - you've been hoarding them.

Of the 85 units, how many are on the ground and how many are you selling per week?

[jdemonto]

Originally Posted by XDCX

Holy smokes, so that's where all the GC's are - you've been hoarding them.

Of the 85 units, how many are on the ground and how many are you selling per week?

We have 14 on the ground, we have sold 4 so far. I am working on one as we speak. Lady had a old 2000 GC and since have had 3 tahoes. I had to ask her to drive about 6 times finally she got tired of me asking and said lets go. After the demo she told me she was already sold but was very impressed with the drive.

You should know we are the top Jeep dealer in the country

Jason

[XDCX]

Originally Posted by jdemonto

You should know we are the top Jeep dealer in the country

Those sound like fighting words.....

I know our member Dealer3100 works at a high volume Jeep store - maybe he'll chime in with his sale results.

Concerning the mix issue, does it appear Chrysler under-estimated the demand for Limiteds and Overlands? In the past Chrysler's always had a reputation for building too many high-end vehicles at launch - the Chrysler Pacifica is a perfect example. It would be ironic if they missed the mark by building too many low-end Grand Cherokees.

[MisterM]

Originally Posted by XDCX

Concerning the mix, I just searched all inventories within 100 miles of Seattle and was surprised that 75% are either Laredos or Laredo Xs. Only 25% were Limited or Overlands.

The current build mix is running at around 67% Laredo, 24% Limited and 9% Overland. The Overland number will probably go up a little now that the QuadraLift suspension is in production.

The suggested early order mix for dealers was listed at 65% Laredo, 20% Limited and 15% Overland.

The Pentasar V6 is at about 70% of overall production vs 30% for the Hemi.

[CJD]

They missed the mark. Not enough Overlands. Also a loaded Limited is more than the Overland.
Most of the customers that are interested in the Laredo want some sort of incentive. However we have many sold orders for Overlands.

[XDCX]

Originally Posted by MisterM

The current build mix is running at around 67% Laredo, 24% Limited and 9% Overland. The Overland number will probably go up a little now that the QuadraLift suspension is in production.

The suggested early order mix for dealers was listed at 65% Laredo, 20% Limited and 15% Overland.

The Pentasar V6 is at about 70% of overall production vs 30% for the Hemi.

Great post - thanks for the information.

I recall an earlier post from a dealer who reported he was getting a lot of high-end trades for the '11 GCs he sold. Based on that comment, it surprises me to see 70% of the GC's production is equipped with the Pentastar V6.

[XDCX]

Originally Posted by CJD

They missed the mark. Not enough Overlands. Also a loaded Limited is more than the Overland.
Most of the customers that are interested in the Laredo want some sort of incentive. However we have many sold orders for Overlands.

CJD - First post - Welcome to DealershipForum

Your experience supports what we've been hearing from the other members - the initial '11 GC mix was too heavy toward the lower priced vehicles.

Concerning incentives on the '11 GC, I wouldn't hold your breath. It's clear that Marchionne is very proud of the '11 GC and he's also been very firm that he wants to hold margin even if it means cutting production.

Who knows? I'd love to see Chrysler triple shift the Jefferson plant and put some money on the hood to drive demand. As always, time will tell....

[CJD]

No I'm not saying that the GC needs rebates. Drive one the vehicle speaks for it's self. The best product from Chrysler in awhile. It's just that we trained our customers to buy cars with big rebates.

From what my DM told me the Overland production will get a boost in the coming months. And the pricing on the Limited might get a slight adjustment. I'm sure it will be talked about in Orlando.