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Old 09-21-2011, 10:56 AM   #1
XDCX
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Default Any customer reactions to the pricing of the 2012 Jeep SRT8?

I received a tip from one of our members that the SRT Community is not happy with Auburn Hills and their pricing of the 2012 Jeep SRT8.

While I think we would all would agree the 2012 Grand Cherokee is a HUGE improvement over the prior one, the increase in weight actually makes the 2012 Jeep SRT8 a tick slower than the previous model.

The big issue, however, is the cost. The 2012 Jeep SRT8 is about $15K more expensive than its processor. Here's an excerpt from a recent review performed by Edmunds Inside Line:
Trouble is, all the added spiff comes at a price. The old Jeep Cherokee SRT8 started at about $41,000. That's nearly $15,000 less than this new version. Then you add the options to our test truck, which include a panoramic sunroof, a 19-speaker Harman Kardon audio system, a power liftgate, a blind-spot monitoring system and additional leather, and the sticker price climbs to $60,780. Back in 2007 we tested a loaded example that cost about $45,000. Sure, the new one is better than the old one, but $16,000 better?
Is there a market for a $61,000 Jeep SRT8 or has Auburn Hills lost the concept of what brought customers to the SRT brand to begin with?
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Old 09-21-2011, 11:09 AM   #2
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I don't understand what caused the huge price increase. Does the new regular Cherokee cost significantly more than older versions?
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Old 09-21-2011, 11:21 AM   #3
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I don't understand what caused the huge price increase. Does the new regular Cherokee cost significantly more than older versions?
I think you just identified why there's so much resentment from the SRT community directed toward Auburn Hills. It appears the Jeep SRT8s pricing is based on their primary competitors - the BMW X5 M and the Porsche Cayenne Turbo - and not the actual content of the vehicle.

By comparison, the Challenger's pricing is held in check by the Camaro and Mustang but Chrysler thought they could gouge the Jeep SRT customers because there were no other inexpensive competitors.
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Old 09-21-2011, 11:53 AM   #4
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Has there been an increase in production costs?
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Old 09-21-2011, 12:49 PM   #5
chryslersrt8
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I agree the price increase is very stiff but on the other hand what does it take to surpass the overall product? Porsche Cayanne and what else??? If the Jeep SRT8 was German or Japanese how much do you think it would be? The car rags would call it a bargain at $79000! Maybe it makes sense to take all SRT products to a separate division to build a unique high end value. Even if it is the best product in its class it has to be priced as a Chrysler-Dodge or Jeep. And that's the sad part.
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Old 09-21-2011, 01:03 PM   #6
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We had allocation for 1, and thought we'd order it. Sometimes those SRT's are good swap bait. Then we found the pricing, and no order was placed.
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Old 09-21-2011, 01:39 PM   #7
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We had allocation for 1, and thought we'd order it. Sometimes those SRT's are good swap bait. Then we found the pricing, and no order was placed.
My source indicated that Ralph Gilles was claiming that all 3,800 Jeep SRT8s committed for 2012MY production were sold out. My source was wondering if Gilles' statement was true given that some dealers may decline their allocation based on the price of the vehicle?

I wonder how many other dealers passed on their 2012 Jeep SRT8 allocation?
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Old 09-22-2011, 03:25 AM   #8
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Quote from Frankfurt show:

"Jeep CEO Michael Manley said all of the 4,000 planned for production in 2012 have been sold to dealers."

The minimum MSRP for the new Jeep is $61,785 ($58,579 dlr.). Seems a bit misleading to promote "base" MSRP at $54,470 (+ delivery) when required options force the starting price up to almost 62k. Also looks like the dealer margin has shrunk quite a bit.

Loaded up the Jeep surpasses $66,000. In some states T&L will bring the total to an eye-opening $70k. Looking back, the first gen '06 model was quite the bargain at a starting price of $39k. The Jeep SRT was priced up to thousands below the top-of-line Overland throughout its 5-year run. The 2012 Overland 4x4 starts at $42,995.
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Old 09-22-2011, 11:34 AM   #9
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Originally Posted by JoeRocket View Post
Has there been an increase in production costs?
Good question.

Based on the comments from our member Mister M the price increase for the 2012 Jeep SRT8 greatly exceeds the price increase for the Overland. It also appears there may have been some loss of margin on the 2012 Jeep SRT8 too.
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Old 09-22-2011, 11:42 AM   #10
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Quote:
Originally Posted by Rob Isakson View Post
I agree the price increase is very stiff but on the other hand what does it take to surpass the overall product? Porsche Cayanne and what else??? If the Jeep SRT8 was German or Japanese how much do you think it would be? The car rags would call it a bargain at $79000! Maybe it makes sense to take all SRT products to a separate division to build a unique high end value. Even if it is the best product in its class it has to be priced as a Chrysler-Dodge or Jeep. And that's the sad part.
I follow your point but I feel Chrysler has lost their way with the SRT brand. I look back at the first generation SRT4s and I think that car did a fantastic job of building brand awareness and customer loyalty for Dodge and the SRT brand.

Dodge pitched the original SRT4 as "The fastest production vehicle available for under $20K" and they sold them in volume. Many customers who bought that vehicle would have never entered a Dodge showroom if it wasn't for the SRT4. I don't think a $60K SRT8 Jeep is going to have the same impact.
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Old 09-22-2011, 01:33 PM   #11
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I agree 100%. How many SRT-4 type cars at $30-35K today sell from Subaru and Mitsubishi? But without trying to be too negative hasn't Chrysler lost the enitre notion of a value priced product? It started with getting rid of Plymouth. Today I believe the product is better than anytime in my 40 years associated with the car business. But Chrysler has lost sight of the value consious buyer, especially the entry level 1st time buyer and the go to work commuter car buyer. The Neon was a great concept that was flawed with a horrible advertising campaign and reliabilty that was spotty. The SRT-4 was a fun car but how many were sold (so were the Omni Shelby and GLH)? That car today would be pushing $30-35,000. If Chrysler is being pushed as luxury, Dodge as sports-performance-Jeep as tough as nails where is a value vehicle? . I feel that the Caliber replacement is absolutely critical for Chrysler's future as there has to be a refocusing in getting 1st time buyers and value buyers, not to mention a high mpg vehicle.

Going back to the original post...I still think that the entire SRT lineup should be a seperate lineup. Make it the best BMW-Lexus-Porsche sedan or SUV fighter you can. If the price AND quality is world class the product will sell. Cheapening it to get to a price point will do exactly that...cheapen it!
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Old 09-23-2011, 11:37 PM   #12
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I think we will sell them just fine....on an interesting note anyone notice that they are not moving? Something about not being EPA approved.....

Jason
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Old 09-24-2011, 01:49 PM   #13
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Quote:
Originally Posted by Rob Isakson View Post
But without trying to be too negative hasn't Chrysler lost the enitre notion of a value priced product? It started with getting rid of Plymouth. Today I believe the product is better than anytime in my 40 years associated with the car business. But Chrysler has lost sight of the value consious buyer, especially the entry level 1st time buyer and the go to work commuter car buyer.
Totally agree. In fact, that's one of my favorite rants and one of the reasons I hold Steve Landry in such low regard.

Chrysler has lost tons of customers to Hyundai and KIA because they abandoned the entry level segments and I think they'll have a hard time winning those customers back.

Quote:
Originally Posted by Rob Isakson View Post
Going back to the original post...I still think that the entire SRT lineup should be a seperate lineup. Make it the best BMW-Lexus-Porsche sedan or SUV fighter you can. If the price AND quality is world class the product will sell. Cheapening it to get to a price point will do exactly that...cheapen it!
I don't know, we may need to agree to disagree.

The original SRT Team was a small group of Chrysler engineers who were tasked with taking existing platforms and powertrains and creating exciting vehicles that would attract new customers to the brand. As before, I think they hit a home run with the first gen SRT4 - that was a vehicle that greatly exceeded sales expectations.

I love what BMW has done with their M line-up of vehicles and what Mercedes has done with their AMG division. That said, I'm just not sure Chrysler can take the SRT brand that far upscale and still be able to sell enough vehicles to warrant the effort.

Part of my price-sensitivity and brand direction issues may be related to Chrysler's recent announcement that they have a new manager leading the SRT team. As I recall she's an outsider who came from a very high end/low volume OEM. I'll do some digging and add that information to this post once I get caught up.
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Old 09-25-2011, 04:17 PM   #14
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Originally Posted by XDCX View Post
Part of my price-sensitivity and brand direction issues may be related to Chrysler's recent announcement that they have a new manager leading the SRT team. As I recall she's an outsider who came from a very high end/low volume OEM. I'll do some digging and add that information to this post once I get caught up.
Here's a link with a report about Chrysler's SRT Brand Manager - click here

Without trying to sound sexist, in my opinion Ms. Paretta is the antithesis of where the SRT brand should be headed. To be clear, I don't have an issue with a woman running the SRT Brand my issue is her limited automotive experience as it relates to vehicles that Chrysler, Jeep and Dodge customers can afford.

Maybe I'm wrong, but I can't imagine Ms. Paretta leading the SRT team to produce another great SRT4 vehicle that will bring young customers back to the Dodge showrooms.

Further, I find it unfathomable that Marchionne couldn't have found someone within Chrysler who would have loved to have the opportunity he extended to Ms. Paretta. Was it really necessary to go outside of Chrysler to find someone to lead the SRT Brand?
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Old 04-10-2012, 09:57 AM   #15
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Default Saw my first 2012 Jeep SRT8 on the road yesterday

I thought of this thread yesterday when I saw my first 2012 Jeep GC SRT8 driving in the Phoenix area. The SRT had a Bill Luke CJDR plate frame and looked like it was only sold a few days ago based on the temporary license plate.

I thought the SRT looked good but I was really surprised how subtle the styling of the SRT is compared to the other GCs. From a distance the only thing that tipped me off that the Jeep was a SRT was the dual exhaust and wide tires.

It will be interesting to see how deep the customer demand is for a $60K+ Jeep.
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