Jeep Wrangler inventories grow, even as sales climb

[jpd80]

Jeep Wrangler inventories grow, even as sales climb

Larry P. Vellequette  https://www.autonews.com/sales/jeep-wrangler-inventories-grow-even-sales-climb

December 24, 2018 12:00 AM

udging by record sales since production began a year ago, Jeep fans are lapping up the redesigned Wrangler.

Which is good — because Jeep dealers are swimming in them.

Supplies of unsold Wranglers at U.S. dealerships or on their way there have ballooned to well more than 100 days in each of the past three months, including a 156-day supply at the beginning of November and 135 days at the start of this month, while the total number of Wranglers in FCA US' field stock rose to 85,979 at the start of this month, from 69,579 at the beginning of October.

That's roughly double or even triple the supply that dealers traditionally carried with the previous JK version of the Wrangler, though levels briefly topped 100 days in the first two months of 2018 as FCA simultaneously produced the old and new generations.

Meanwhile, Wrangler sales — which had been on an unprecedented tear in the first half of this year, including a monthly record of 29,776 in April — are still hitting records, but at a pace much more in line with the Wrangler's traditional sales cycle. Through November, sales are up 25 percent over 2017 to 220,232, including a 20 percent bump in November, when FCA sold 15,963.

So if dealers are selling record numbers of Wranglers, why are so many of the SUVs suddenly on their lots?

One big reason is production. The new assembly line in Toledo, Ohio, where FCA produces the Wrangler has a planned capacity that's nearly double that of the previous assembly line, although that previous line regularly produced at a level about 50 percent above its planned capacity of 160,000 vehicles.

[Gurgeh]

jpd80,

FCA had the courage of their own convictions. They are (slightly more than) fully producing to meet demand unlike, for instance, Lincoln who should have planned for the Navigator being a hit. Let's hope Lincoln's learned their lesson and are prepared to produce a boatload (hangerload?) of Aviators on release.

[akirby]

Too much inventory will lead to rebates which cuts profitability.  It’s usually better to underproduce slightly.  Adding volume without adding profit is a waste.

[jpd80]

7 hours ago, Gurgeh said:

jpd80,

FCA had the courage of their own convictions. They are (slightly more than) fully producing to meet demand unlike, for instance, Lincoln who should have planned for the Navigator being a hit. Let's hope Lincoln's learned their lesson and are prepared to produce a boatload (hangerload?) of Aviators on release.

Gurgeh, none of the above were my comments, all of it was as reported by auto news.

 

[jpd80]

On 12-1-18, Wrangler inventory was 86,000 vehicles (135 days)

Not saying that's bad but it's something that Jeep will need to watch very closely (especially if it's over 100K at 1 January...)

[rperez817]

"And for a top-of-the-line 2019 Wrangler Unlimited Moab edition, the price runs to $56,005, including shipping — all with little or no consumer cash incentives."

?

[.I.]

Is Toledo plant where Jeep will build the Gladiator? I think Jeep is producing now the Wrangler they can´t produce when they start to produce the Gladiator. I predict the Gladiator will sell like pancakes... and the Toledo plant will not be enough to produce both vehicles at the rate will be necesaary to meet the demand.

[sullynd]

5 hours ago, falconlover 1 said:

Is Toledo plant where Jeep will build the Gladiator? 

The Wrangler and Gladiator will be built at separate plants. 

[probowler]

On 12/24/2018 at 5:43 AM, akirby said:

Too much inventory will lead to rebates which cuts profitability.  It’s usually better to underproduce slightly.  Adding volume without adding profit is a waste.

They could just ease production at a later point if they're willing to sit on existing inventory no?

[RPF]

6 hours ago, sullynd said:

The Wrangler and Gladiator will be built at separate plants. 

I believe it is on different lines in the Toledo plant. The new JL Wrangler is built where the Cherokee was built before being moved and the Gladiator is being built on the line that the JK was built on..

[jpd80]

What is not known is the effect Gladiator will have on Wrangler sales, FCA obviously believes little or none. 

As we’ve seen, Wrangler sales are booming even with higher prices but it’s important that FCA not get ahead of itself here, they can carry some excess inventory through winter providing sales stay strong, maybe there’s a slight rebalance times with Gladiator launch so that the sales mix stays healthy

[PREMiERdrum]

17 hours ago, RPF said:

I believe it is on different lines in the Toledo plant. The new JL Wrangler is built where the Cherokee was built before being moved and the Gladiator is being built on the line that the JK was built on..

This is exactly right. Same plant, different lines. 

Edited December 27, 2018 by PREMiERdrum

[snooter]

Whatever the case with december sales up 14.4% at fca i dont think anybody cares about additional wrangler inventory