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SalesJeep Excess Inventory Hurting Compass Sales?
Posted by mike on 2006/10/24 8:12:48 (1586) reads

We've recently been reading about the glut of Chrysler vehicles that are sitting on dealer lots and at Chrysler assembly plants and it looks like these unsold vehicles are partly to blame for the lackluster Compass sales.

This Forbes.com article lays it all out nicely - they summarize that the issue is due to Chrysler Group is trying to sell these vehicles using various dealer and customer incentives. It seems that with all the incentives on current Libertys and Wranglers, their prices become competitive with the lesser priced Compass.

It's estimated that Chrysler Group needs to sell about 6,000 Compasses per month in order for the vehicle to be profitable. It seems unlikely that this will be possible until current inventory issues are resolved.

If you had a choice, what would you purchase? A Compass or a Liberty for $1K or $2K more? If you've been thinking about picking up an 2006 Jeep - now might be a good time to visit your dealer.

By the way, if you want to see some of the thousands of excess vehicles, just take a flight to Detroit and look down as your flight is landing at the acres of shiny new Chrysler, Dodge, and Jeep vehicles in parking lots surrounding the airports.

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Poster Thread
skywater55
Posted: 2006/10/25 14:25  Updated: 2006/10/25 14:25
Just can't stay away
Joined: 2006/8/28
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Posts: 95
 Re: Jeep Excess Inventory Hurting Compass Sales?
I dont understand DCX. They are spending big $$$ on advertising for the new wrangler but ya try to buy one and ya have to pay a premium over sticker at least where im shopping....no vehicle is worth paying over sticker...none nadda...ive seen a few on the roads and wonder how much these folks had to pay to get one....

Poster Thread
jerryjeep
Posted: 2006/10/24 16:38  Updated: 2006/10/24 16:38
Quite a regular
Joined: 2006/8/28
From: Southeast, Michigan
Posts: 49
 Re: Jeep Excess Inventory Hurting Compass Sales?
Josephus may be on to something with his comments... Maybe we have the voice of the Customer saying that the Compass is not really a Jeep or that it is not priced correctly in the marketplace for what it is. The sales figures of 6000@ month would work out to around one per month per Dealer in the US network, that sounds pretty pathetic for a new product. The advertising in our area is definitely weak for the Compass and there seem to be only a few on the streets. Toledo is a strong JEEP market yet nobody I've talked to is very excited about the Compass. More questions on the Sales and Marketing strategy need to be answered at the executive levels at DCX.

Poster Thread
Josephus
Posted: 2006/10/24 14:31  Updated: 2006/10/24 14:31
Home away from home
Joined: 2005/7/18
From: Pennsylvania
Posts: 265
 Re: Jeep Excess Inventory Hurting Compass Sales?
I personally think the Compass is a weaker execution of a weak concept. Jeep should have been dedicating it's resources to improving mileage on existing products to keep them competitive in their established market, instead of expanding into an ultra-competitive market with a marginal product.

It all comes down to what my pappy taught me.
"If you are going to do something, do it the best that you possibly can." and "Buy the best there is, and you'll never regret it."

Jeep Compass is neither of these. The 3.8L in the Wrangler is slipping down a notch too.

Poster Thread
bkcurtis
Posted: 2006/10/24 16:18  Updated: 2006/10/24 20:31
Home away from home
Joined: 2005/10/8
From: NW Indiana, USA
Posts: 154
 Re: Jeep Excess Inventory Hurting Compass Sales?
Yet, the 3.8L seemed to handle the Unlimted Rubicons on the Rubicon Trail video, and out in the fields of Africa (Autoweek magazine?) pretty darn good.

My 98 XJ has over 232,000 miles on it, so I am very partial to the 4.0 I-6. However, I know that Jeep had to change--whether it was because of gov't regulations, I don't know. However, I am not ready to thrash the 3.8.

Reliability of the 3.8 in a Jeep vehical will be the key. If it is like the Everyready bunny and keeps on goin', then I think MOST people will be happy with the engine.

Poster Thread
l2fiore30089
Posted: 2006/10/24 12:01  Updated: 2006/10/24 12:01
Just popping in
Joined: 2003/11/6
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 Re: Jeep Excess Inventory Hurting Compass Sales?
Last week I went to a dealership to buy a new Compass. Salesman offered a new 2006 Pacifica for Thousands LESS than a Compass with the same features. Didn't want that big of a vehicle but made me wait on the Compass for a better deal.

Poster Thread
hal2814
Posted: 2006/10/24 9:09  Updated: 2006/10/24 9:09
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Posts: 49
 Re: Jeep Excess Inventory Hurting Compass Sales?
Q: Would you purchase a Compass or a Liberty for $1k to $2k more?
A: No.

Could it be that the Compass isn't selling because people just don't like the Compass? The initial slow selling of the Commander surprised me as it was basically a Grand Wagoneer update. The initial slow selling of the Compass doesn't surprise me at all. I have a feeling that this vehicle will always be the red-headed stepchild of the Jeep lineup. I also have a feeling that anyone who is seriously considering such a vehicle will just wait until the Patriot comes out or get something else entirely.

Poster Thread
jpsmith
Posted: 2006/10/24 10:04  Updated: 2006/10/24 10:04
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Joined: 2006/7/25
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Posts: 97
 Re: Jeep Excess Inventory Hurting Compass Sales?
Heh - it wasn't a yes/no question. It was asking if you'd still buy the compass when you could get a bigger, more capable liberty for not much more money. In any event, I understand your sentiment. However, I do think that the compass is aimed a people that don't care about jeep heritage, capability, and performance. Whether or not DCX should be doing that to the Jeep name is debatable, but that's how I perceive this car. It's an attempt to grab the 20-something city folk that really don't care how much it can tow or what it's approach and departure angles are. I, for one, wouldn't even consider looking at a compass, but I'm not the targe demographic. FWIW, I also hate bobbleheads and hip-hoppey dance music.

Poster Thread
bkcurtis
Posted: 2006/10/24 16:10  Updated: 2006/10/24 16:10
Home away from home
Joined: 2005/10/8
From: NW Indiana, USA
Posts: 154
 Re: Jeep Excess Inventory Hurting Compass Sales?
. . . and people forget that the Compass (and Patriot) are ALSO geared for the European market.

I wish I could afford to buy two new vehicles. One would be the Unlimited, and the other would be the Compass for my daily driver.

Poster Thread
skywater55
Posted: 2006/10/25 14:18  Updated: 2006/10/25 14:18
Just can't stay away
Joined: 2006/8/28
From:
Posts: 95
 Re: Jeep Excess Inventory Hurting Compass Sales?
I went to Chrysler/Jeep dealer in hopes of getting a new wrangler. Shoulda known better. They had marked up the 07 wrangler as they are trying to get rid of the 06's which were EVERYWHERE! The sales person was trying to get me into a Pacifica...Oh Pulease...im going there to get a wrangler and you want me to get a pacifica???? Anyway i was kinda blown off when i kept my interest in the 07. They would not even let me test drive one...heck im sitting in the parking lot with an 05 rubi and i cannot even get a ride/drive in an 07 only allowed to SIT in it??? know wonder DCX sales are down...i shoulda acted like i wanted a pacifica to see if they would push the wrangler on me...im out for about a year until DCX is desperate to sell the new wrangler and puts incentives on teh vehicle so the buyer has more leverage...i would be better off just ordering the vehicle and having it delivered to the same dealer...now that might be funny to watch those sale people...keep your pacifica...i want an 07 wrangler but looks like i'll have to wait for 08....
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