Slow Start: Jeep Compass
Thread Starter
Speaks French in Russian
Joined: Oct 2002
Posts: 13,397
Likes: 100
From: What is G?
Slow Start: Jeep Compass
A young couple walked into Alan Helfman's River Oaks Chrysler-Jeep store in Houston last month fully expecting to buy the 2007 Compass, Jeep's first-ever car-based crossover.
But they left with a more expensive Liberty -- one loaded with incentives. Customers "will upgrade if they see a good deal at the next level," Helfman says.
As Chrysler dealers offer discounts on 2006 and existing 2007 models, they compete with the Compass, launched in July. The discounting may have slowed the Compass launch a little, although Chrysler says it is pleased so far.
Early signs are that the Compass is off to a slower start than the Dodge Caliber. The average transaction price has dropped from $22,467 when the Compass was launched to $21,534 as of Sept. 24, according to the Power Information Network.
In contrast, transaction prices for the Caliber have risen from $17,059 at launch in March to $18,276 as of Sept. 24.
"The Caliber was an exceptionally strong launch," says Tom Libby, a Power Information Network analyst. Libby says it's common for transaction prices to dip as a vehicle ramps up.
Jesse Toprak, an analyst for Edmunds.com, predicts cannibalization of Compass sales shouldn't be too bad unless dealers find themselves stuck with lots of Liberties or Grand Cherokees late in the fourth quarter.
But they left with a more expensive Liberty -- one loaded with incentives. Customers "will upgrade if they see a good deal at the next level," Helfman says.
As Chrysler dealers offer discounts on 2006 and existing 2007 models, they compete with the Compass, launched in July. The discounting may have slowed the Compass launch a little, although Chrysler says it is pleased so far.
Early signs are that the Compass is off to a slower start than the Dodge Caliber. The average transaction price has dropped from $22,467 when the Compass was launched to $21,534 as of Sept. 24, according to the Power Information Network.
In contrast, transaction prices for the Caliber have risen from $17,059 at launch in March to $18,276 as of Sept. 24.
"The Caliber was an exceptionally strong launch," says Tom Libby, a Power Information Network analyst. Libby says it's common for transaction prices to dip as a vehicle ramps up.
Jesse Toprak, an analyst for Edmunds.com, predicts cannibalization of Compass sales shouldn't be too bad unless dealers find themselves stuck with lots of Liberties or Grand Cherokees late in the fourth quarter.
I can give them one reason why this isnt selling.
CL Community Team
Joined: Apr 2004
Posts: 17,331
Likes: 210
From: Miami, Florida
After spending most of Saturday with my cousin buy parts, we came back to my neighborhood and my cousin saw what he though was a new Grand Cherokee. Had a dealer plate and this guy absolutely did not want me to pass him, but this vehicle could just not keep up with my RX. I finally saw the front and let him come up by me and sure enough on the rear bumper it said Compass. That Caliber is not selling either here.
Lexus Fanatic
Joined: Oct 2003
Posts: 94,474
Likes: 252
From: Virginia/D.C. suburbs
I reviewed a new Compass about a month ago and was not very impressed with it at all....especially its ultra-cheap interior and hardware. It really doesn't do anything that a lot of other small, car-based SUV's and wagons can't do just as well or better.....some with far better build quiality.
After going around the window panels, you can feel the cheapness of the whole car. Panels wouldn't snap back tightly, trims were flimsy, the whole car felt like it was to come apart
I was afraid to touch the car after that and called AAA immediately
Lexus Fanatic
Joined: Oct 2003
Posts: 94,474
Likes: 252
From: Virginia/D.C. suburbs
The Compass and Patriot are not true off-road Jeeps. They are modified versions of the compact car-based Dodge Caliber platform and are primarily designed for grocery shopping. In fact, the Compass doesn't even come with AWD standard....it is an option.
Trending Topics
Lexus Champion
Joined: Jun 2006
Posts: 4,192
Likes: 3
From: none
To be honest, it caught me by surprised. I'm a car guy and I'm usually on top of things but the arrival of the Compass at the dealership caught me off guard. I never heard a damn word about it being produced or any launch date. It just showed up one day lol.
It starts at Cdn$18k which is ridiculously cheap (the last cheap SUV was the Suzuki Sidekick/Chevrolet Tracker and they were death traps but good off-roaders). I think Jeep is trying too hard. It looks puffy. Why is Chrysler just churning out crap after crap? Are they really that desperate? What ever happened to MB's engineering? (hey, it's better than the old Chrysler stuff).
American companies seem to be experts in badge engineering - Torrent/Equinox, Uplander/SV6/Terrazan, cobalt/pursuit. Same car, different grille.
It starts at Cdn$18k which is ridiculously cheap (the last cheap SUV was the Suzuki Sidekick/Chevrolet Tracker and they were death traps but good off-roaders). I think Jeep is trying too hard. It looks puffy. Why is Chrysler just churning out crap after crap? Are they really that desperate? What ever happened to MB's engineering? (hey, it's better than the old Chrysler stuff).
American companies seem to be experts in badge engineering - Torrent/Equinox, Uplander/SV6/Terrazan, cobalt/pursuit. Same car, different grille.
Lexus Test Driver
Joined: Feb 2006
Posts: 1,388
Likes: 9
From: Michigan
Anyone remember that incident on the Jeep website showing a short vid for something about the hood, and it turned out to be something else?
Lexus Fanatic
Joined: Oct 2003
Posts: 94,474
Likes: 252
From: Virginia/D.C. suburbs
The Jeep research marketers looked at the statistics showing that with the rare exception of a few classic cult-car off-roaders like the Wrangler, Nissan XTerra, etc.... few SUV owners actually go stream-fording or mountain-goating......even with the Wrangler's big brothers, the Liberty and Grand Cherokee. So they decided to toss tradition by the wayside, at least for a while, and start marketing a few vehicles as well that are aimed primarily at soccer-moms, that will be primarily used, like minivans, for driving the kids around or grocery-shopping and don't need to be Trail-Rated. Presto....we have the Compass and upcoming Patriot.
Lexus Champion
Joined: Jun 2006
Posts: 4,192
Likes: 3
From: none
The Jeep research marketers looked at the statistics showing that with the rare exception of a few classic cult-car off-roaders like the Wrangler, Nissan XTerra, etc.... few SUV owners actually go stream-fording or mountain-goating......even with the Wrangler's big brothers, the Liberty and Grand Cherokee. So they decided to toss tradition by the wayside, at least for a while, and start marketing a few vehicles as well that are aimed primarily at soccer-moms, that will be primarily used, like minivans, for driving the kids around or grocery-shopping and don't need to be Trail-Rated. Presto....we have the Compass and upcoming Patriot.
Lexus Champion
Joined: Feb 2005
Posts: 1,809
Likes: 0
From: NYC Raised But ATL is where I stay.