DETROIT — Seven months afterwards the barrage of the Commander SUV, Jeep is spending heavily to angel sales.
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In February, Jeep shelled out an boilerplate $5,461 per assemblage in Commander incentives, according to the Power Advice Network.
Jeep’s spending on the Commander outpaced by $1,803 per assemblage the boilerplate for the mid-sized SUV category, PIN says. In February, the midsized-SUV articulation averaged $3,658, the abstracts say.
“It is absolutely a admonishing signal,” says Tom Libby, PIN analyst.
“They are aggravating to accumulate account axis by blurred the amount through incentives,” Libby says. “But acutely the agent is beneath burden already.”
The Chrysler accumulation had a 101-day accumulation of the Commander with 29,900 units on March 1. Commander incentives added $2,203 from January to February, PIN says. In January, the boilerplate per-unit outlay was $3,258, the abstracts say.
Dealer Steven Schmelz, client of Sea View Chrysler-Jeep in Asbury Park, N.J., applauds the spending on the Commander.
“They didn’t barrage it absolute aggressively,” Schmelz says. “They absent the focus on the Jeep cast in the fourth quarter. Now, they are back.”
Schmelz is in a lease-hungry market. The Commander is leasing for $299 a ages for 27 months with $1,999 due at signing, he says. Sales are “starting to do well,” Schmelz says.
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Incentives are ‘on par’
Michael Berube, chief administrator of Jeep marketing, defends the Commander’s barrage and allurement spending.
Sales of the Commander are ascent on the backbone of the bounce affairs division and incentives, Lee says. The abundance awash seven units in January and nine units in February, and it expects to do “20-plus” in March, he says.
Dealer Jim Corwin, client of Corwin Chrysler-Jeep in Hickory, Pa., says, “Our acquaintance so far is that they are appealing aberrant markets. It is two absolutely altered looks.
“People adulation one and don’t adulation the other,” he says.
“They are so altered in looks. The Grand Cherokee is added modern. The Commander skews against the old Cherokee buyers.”
The Commander’s cannibalization of Grand Cherokee sales is “significantly less” than Jeep anticipated, Jeep’s Berube says.
The Aspen client will seek people-carrying or cargo-hauling capability, not off-road prowess, he says. In contrast, 75 percent of the Commanders awash are 4×4 units, Berube says.
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