Jeep, No Longer Unstoppable, Desires to Repair Its Game in an Overlooked Market place

2016 Jeep Wrangler

Right after posting sales gains that most automakers would sell their souls for, Jeep’s skyrocketing climb hit the upper limits of the atmosphere in September, with sales dropping by three % compared to the very same month a year ago.

Perhaps the Jeep brand is not larger than Jesus. With the new vehicle marketplace cooling off and two of its oldest — but nonetheless strong-promoting — models being pared down to 1, Jeep requirements to branch out to preserve the momentum going.

It has products up its sleeve — a Wrangler pickup and $ 140,000 luxo-ute to name a couple — and has factories planned for developing nations everywhere, but Jeep could reap a sales reward if it stopped screwing up in a single obvious but overlooked marketplace.

With the exception of the American Southwest, Australia seems tailor-made for the Jeep brand. There’s warm temperatures, beaches, desert, and a patriotic thirst for off-roading and automobiles that buck the norm. Hell, the place is almost all rural.

And but, Jeep sales are dwindling to pathetic levels Down Beneath. What went wrong at Fiat Chrysler Automobiles Australia?

For starters, the firm was rocked by a scandal, with FCA Australia suing former Jeep boss Clyde Campbell for allegedly misusing $ 30 million in funds throughout his 3-year stint (2010-2013). His successor Pat Dougherty, stepped down (or was pushed out) in August, two years into his 3-year contract.

In 2015, a record-setting year for Australian new car sales, Jeep saw its sales tumble 19.7 percent. That is a tally of 24,418 Jeep vehicles for the whole year. The last time the U.S. recorded a month-to-month sales figure that low was in 2010. Australian Jeep sales in the first half of this year are down 51 %. Is it a hemisphere factor? What goes up in America goes down in the outback?

FCA Australia’s newest boss does not think so, and feels he knows specifically what the brand’s dilemma is. According to the Aussie publication Drive, Steve Zanlunghi claims the brand’s advertising is all off, and says he desires to reclaim the historically tough, go-anywhere appeal that has drawn clients — military and civilian — to Jeep from Day 1.

“It’s not a cute brand,” Zanlunghi told reporters this week. “It’s not a funny brand. It’s not luxury. It is not pretentious.”

A new ad campaign is poised to launch, a single that takes the place of a panned commercial that had Australians incredulously asking “You bought a Jeep?”

“I inform you I wasn’t terribly satisfied with what some of the path I saw most recently,” Zanlunghi said. “If we don’t comprehend what the brand is, then how do we anticipate dealers to comprehend it and eventually customers, do they know what it is? So I put together a manifesto for what the Jeep brand here is Australia and presented it to our inventive agency and they get it, and then to the national sales company and they get it and ultimately to the dealers and they get it and they’re on board.”

Australia hasn’t escaped the SUV/crossover craze sweeping the planet, with SUV sales up nearly 16 % last year. Industry share for utility vehicles is closing in on percentages noticed in the U.S. If Jeep Australia stops shooting itself in the foot, there’s gold to be found in them there hills.

[Image: Fiat Chrysler Automobiles]

Vehicle Critiques – The Truth About Vehicles

Tesla Just Cannot Catch a Stock Market place Break

Tesla Model 3 Prototype on road, Image: Tesla Motors

The short uptick in share cost Tesla enjoyed following beating production estimates this week was swiftly erased by a newly crucial Goldman Sachs Group.

The investment bank downgraded the firm on Thursday, sending its stock back down the hillside, Bloomberg reports. It is bad news for CEO Elon Musk’s fundraising plans.

Goldman was spooked by Tesla’s $ two.6 billion acquisition of solar power business SolarCity. The bank, which managed the automaker’s $ 1.4 billion May possibly stock offering, scrapped Tesla’s “buy” rating, replacing it with “neutral” right after assessing the additional danger taken on by the automaker. It also cut Tesla’s cost target from $ 240 per share to $ 185.

Naturally, Tesla’s stock bounced off the ceiling, reaching a five-week low. The stock began the week at $ 214.40, but ended it at $ 196.61. Yet another bank, Morgan Stanley, downgraded the business back in June.

Getting SolarCity is Musk’s way of realizing his goal of a business that can sell you the comprehensive green life-style, but the acquisition sparked a harsh investor backlash. Too a lot danger at the wrong time being the chief complaint.

Musk desires added cash in the bank by the finish of the year to support comprehensive his battery-creating Gigafactory and prepare for Model three production. SolarCity’s require for money to cover debt payments could weaken Tesla’s monetary footing. Meanwhile, the Goldman downgrade threatens the automaker’s capacity to raise far more money by way of future stock offerings.

Musk nevertheless needs shareholder approval to comprehensive the SolarCity deal.

[Image: Tesla Motors]

Vehicle Critiques – The Truth About Automobiles