Jeep says Australia ‘crucial’ to global growth

The head of Jeep worldwide, Christian Meunier, says the US 4x4 specialist will continue to keep the faith when it comes to factory right-hand drive production of current and next-generation models, despite rising costs.

“We can be profitable on right-hand drive,” Meunier told Australian journalists, including carsales.

“Right-hand drive markets like Australia, Japan and the UK will remain crucial to Jeep’s growth.

“The future models for the vast majority of the product are going be right hand drive as well. It’s part of [our strategy] to grow our business in both India and the Asia-Pacific region.”

The Jeep Grand Wagoneer is among the models that remain off-limits to Australia due to LHD-only production, but the vote of confidence from Meunier will ensure other new-generation vehicles – including the Jeep Recon and Jeep Wagoneer S EVs – will be sold Down Under.

The other key issue is right-hand drive output from the brand’s factories.

Limited supplies of the new-generation Jeep Grand Cherokee, which launched in May, has contributed to a downturn for the brand in Australia this year.

With 4748 sales across all model lines to the end of August, Jeep is 8.4 per cent behind where it was at the same point last year, the global semi-conductor shortage and long waiting times for other popular models such as the Jeep Wrangler also stymying the brand’s upward sales trajectory.

There’s no talk of returning to the previous heights of more than 30,000 annual sales – last achieved in 2014 – but Meunier, who three years ago said he was targeting 50,000 for the Jeep brand, is expecting to at least surpass the 7762 units recorded last year.

“I think we’re doing better much better than we used to,” he said.

“I think we’ve changed quite a lot of things. I think the dealer engagement is better. The positive thinking is there. I think we’re going to sell about 8000 cars.”

In order to improve profitability for both the company and its dealers, Meunier said there was now a greater focus on areas such as brand value and model positioning rather than simply chasing sales volume.

The Jeep boss has also previously vowed to improve relations with customers and existing owners, many of whom had bought the previous Jeep Grand Cherokee that was plagued by reliability issues and a record number of vehicle recalls.

“They [dealers] were chasing volume and not achieving it. They were pushing the metal. They were not brand focused. We’re not making a lot of money. Dealers were not making money,” he said.

Jeep is also actively cutting low-spec entry models from its range, with the focus planted firmly on higher-grade, better-equipped vehicles.

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