Jeep aims for 50,000 Aussie sales

The global president of Jeep has revealed a staggering 50,000 annual sales target for the SUV brand in Australia.

Christian Meunier’s goal would be an increase of more than 800 per cent on the 6000 Jeeps that will be sold in Australia in 2019 and an 80 per cent boost on its best year here in 2014, when more than 30,000 vehicles were sold.

While Meunier didn’t put any timing to the sales goal, a revitalisation plan being rolled out in February is the kick-off point for growth.

“For me, between Jeep and Australia, there should be a love story,” said Meunier, who has already visited Australia three times since taking over the global Jeep job last May and has identified it as a key growth market for the brand.

“I don’t think it’s dead but it’s a little slow now and I want to revitalise the love affair between Australia and Jeep.”

Meunier was speaking to Australian media at a drive of the new Jeep Gladiator ute in the south island of New Zealand this week.

New FCA Australia boss Kevin Flynn – FCA is the parent of Jeep – was sitting at Meunier’s side when he dropped the 50,000 number and delivered an impromptu chuckle, suggesting he might not have been expecting it to go public.

Flynn, who has been in the top job in Australia for three months, has developed a complete overhaul of the Jeep brand in Australia. He presented it to top FCA management, including global CEO Mike Manley, at a meeting in the UK only days ago.

Flynn will present the rebuild plan to local dealers next February, when details will also be made public.

The plan is understood to reach into all parts of the Jeep business. Its key goals include boosting dealer profitability, improving customer relations, speeding up responses to customer technical issues, cutting parts pricing and cost of ownership, revamping marketing and communications and offering more Jeep models specified more suitably for Australia.

“If you made a list of the things you thought I should address I can pretty much guarantee I know what they are,” said Flynn.

However, the plan is not expected to boost the warranty for Jeep from the current five years, or add a guaranteed future value scheme as other brands such as Mazda are rolling out.

It was in the context of model supply to Australia that Meunier revealed the 50,000 target.

“I will push like crazy to feed Australia with everything we can get to get to the 50,000 units we deserve in Australia, that’s what I really think,” he said.

That model push will include the launch of the Gladiator ute in the second quarter of next year, a Compass update and an all-new Grand Cherokee in 2021. The Toyota LandCruiser-rivalling Wagoneer and Grand Wagoneer are also under study for Australia.

Jeep is also pushing to offer electrification options across its range with four electric vehicles and 10 plug-in hybrid models due by 2022. How many – if any – come to Australia, is yet to be confirmed.

On the flipside, Jeep has quietly dropped the small Renegade from its Australian line-up.

From riding high in Australia in 2014, Jeep was hit by a headline-grabbing sponsorship scandal involving former boss Clyde Campbell and a record run of recalls and reliability issues for the core Grand Cherokee model.

The brand’s image in Australia has been savaged as a result, something highlighted by the ‘I Made A Mistake I Bought A Lemon Jeep’ YouTube video.

The Australian experience is in contrast to Jeep’s global rise. Since 2009 sales are up 500 per cent to more than 1.5 million.

“We sell these cars all around the world and we don’t have the perceived same issues there, so why do we have those perceived same issues here,” said Flynn.

“We have got to have enough evidence and enough presence to counteract that.”

Meunier was extremely blunt about the situation in Australia, including the efforts of previous management to resuscitate the brand. Flynn replaced Steve Zanlunghi in the top Australian job.

The Australian-born exec introduced a five-year warranty, roadside assist and capped-price servicing for Jeep but that failed to arrest the brand’s decline.

“What is clear is whenever there were a few issues that popped up, the responsibility of an executive is to jump on it and fix it and that wasn’t done,” he said.

“That was done too late and in a poor fashion and that is unacceptable.”

While strong on rhetoric, both Meunier and Flynn veered away from talking much detail ahead of the February presentation.

“We have to find that route back and we have to find the right triggers that link us again with the Australian buyer,” said Flynn.

“We have to make sure our organisation is completely tuned in to what our customers need, what our dealers need and bringing the right products and the right specifications to the market.

“I don’t want to put too much out there right now, but I can absolutely assure you this has been a holistic approach across the whole business.”