We all know and love Jeeps, (well, most of us anyway). So it was no surprise that when FCA finally introduced the Gladiator pickup truck the Jeep world AND the pickup truck world went crazy.
It was the talk of the town, so much that when you saw one on the road for the first time you'd double-take and snapshot a pic to post on social media! It brought a whole new meaning to rubbernecking while on the road!
Jeep dealers couldn't keep them on the lot they were so popular! And, according to Automotive News, customers were buying the higher optioned vehicles further pushing up profits for the automaker. But, like all good trails, there was a bump in the road. Sales started cooling off at the end of 2019 and recalls began to put a wrench in the king of off-roading.
"Total Recall"
So far there are at least two important recalls on both Jeep models: the Wrangler and its sibling Gladiator.
As the National Highway Traffic Safety Administration (NHTSA) says on its safety and recall page, "The overheated clutch components may increase the risk of a fire. Additionally, damage to other nearby components can result in debris falling onto the road or a loss of drive, increasing the risk of a crash."
This issue affects model years 2018-2020 approximately 33,ooo+ vehicles. But wait, there's more!
According to NHTSA, there is also an issue with the rear driveshaft missing grease. "A joint without grease may overheat and seize, possibly causing the driveshaft to fracture, resulting in a sudden loss of drive power. If the driveshaft completely separates from the vehicle it may become a road hazard. Either of these scenarios can increase the risk of a crash."
You know what they say, the squeaky driveshaft gets the grease! In this case, only 3,700 potential Gladiators are being fixed by Jeep. One has to wonder if that has helped slow down buyers rushing to the sales floor. In may be hard to quickly discern since they changed how they collect and report sales numbers switching from a monthly to a quarterly reporting method.
The Corona Effect
In addition to recalls and slower sales inspiring deep cut incentives of up to $9k or more, there is also the economic effect of COVID19. With the Big Three automakers, including FCA shutting down factories, there is expected to be great fall out- not only in unemployment but also in car sales.
Although American car manufacturers stepped up to produce ventilators or face masks, there is still a large amount of revenue lost. When you add in that a plethora of other industries are also on a work hiatus, a new normal begins to emerge in light of this health crisis. (Techcrunch)
Will Jeep Stand Its Ground?
All told, there are many issues for Jeep to face whether its a slow down in interest, recalls, or economic slow down due to a pandemic, FCA has its work cut out for it. We'll see how the story unfolds well after this health crisis has passed. Jeep may not be the last one standing in a crowd of off-roaders.
Sources: Autonews,NHTSA,Techcrunch