Jeep’s Big Aussie comeback plan. Will it work?

[Jimmyb]

Recently arrived FCA Australia MD and CEO Kevin Flynn takes some time out to speak with Unsealed 4X4 to outline Jeep’s Aussie comeback plan… a plan that’s aimed at fixing the marque’s damaged reputation in Australia.

At the start of my one-on-one interview with Kevin Flynn, he told me he firmly believes that all of the DNA of the original Willys is baked into every Jeep built today. He should know, because although he’s only been at the helm of Jeep in Australia for around a year, prior to that he was President & Managing Director of FCA in India for almost five years, where he was charged with launching the Jeep brand and managing right-hand drive production of the Jeep Compass, as well as establishing an export strategy for Jeep brand right-hand markets, including parts distribution.

There’s no doubt the Jeep brand has problems in Australia, with horror stories over the past 10 years or more regarding reliability, high service costs and poor customer care. But Jeep has been working hard to turn this around, and is now putting a fair bit of effort in to explaining how it’s doing this in the Aussie market, clearly outlining the plan and the commitment on the Jeep website, which includes a five-year/100,000km warranty, capped price servicing, lifetime roadside assist, cheaper spare parts, more tech support and more emphasis on customer care.

“I’ve been here nearly a year and prior to coming here the business had experienced a decline for quite a number of years,” Flynn says, “and part of my appointment as a job is to find out what is the cause of that and, more importantly, what is the turnaround plan?”

Flynn explains that part of the problem was as Jeep vehicle sales increased in Australia, the level of customer care and the infrastructure behind that did not keep pace. In response to this problem, Flynn says Jeep is putting a lot of focus into after-sales and processes within after-sales, to reduce the response times to clients and owners when there’s an issue.

“One of the things I committed to do was put four ‘flying doctors’ (special technicians) out into the field… so that whenever we need to get to a situation we’ve now got people around the country mobilised to do it, and that’s their sole job… to respond to a need and to support dealers when they need assistance in diagnosing or sorting or whatever.

“We changed the whole processes within customer service so now there is a lot better link up with technical, customer service, parts acquisition, the whole thing is now really streamlined and cross-functional. It’s working so much better.”

As for parts and servicing costs, Jeep has also made significant steps to improve what many customers have considered a big issue.

“We did an evaluation of 17,000 part numbers that we sold last year, and we’ve re-priced those components,” says Flynn, adding, “and we’ve added the fixed-price servicing and lifetime roadside assist, so we’ve done a lot of things that we said we would do.”

“COVID has been a nightmare, but we have not missed one promise that we set out to our dealers and we set out to our global seniors who are absolutely backing us on this turnaround of the business (in Australia).

To get the message across to customers, Jeep Australia is using various channels including social media and television. And that message, according to Flynn, is that the company is hitting the “reset button”.

Through social media, Flynn says the message is essentially: “Look, not all may have been as well in the past, but there’s a big button on the wall and a bit of a reset”, followed by the promise, “It’s alright saying sorry but it’s another thing saying what are we going to do about it? And we started laying out those things.”

Kevin Flynn is optimistic about the future of the Jeep brand in Australia, pointing out that the company had a good sales result in June this year and that July was also looking strong. Since our interview last week, we’ve now seen the Federal Chamber of Automotive Industries (FCAI) VFACTS sales figures for July and while some Jeep models have performed well, others have not.

While Compass and Cherokee continue to perform quite poorly in the market (down -46.2 per cent and -29.3 per cent respectively for the first seven months of 2020 compared to the same period last year) one of the brand’s core products, Wrangler, was up 3.2 per cent over the same period.

And while Jeep’s most popular model, the Grand Cherokee, was up 7.9 per cent in July 2020 compared to July 2019 (261 to 242 sales), in year-to-date terms it was down a worrying -19.5 per cent on last year (1424 to 176.

The new Gladiator managed a very modest 33 sales in July 2020, and there’s little doubt Jeep would wish it could get its hands on a diesel variant.

Of the effort to claw back some sales momentum, Flynn admits, “It’s a journey. It won’t happen overnight and nor should it; we need to earn it back.”

“Without any shadow of doubt, we dented people’s trust and we need to earn that back and that’s not an overnight thing…”

“What I can say is that the engagement we see is significantly up on last year… and the attitude in our social media sentiment is moving from negative into a balance of neutral and positive…”

The Grand Cherokee is by far Jeep’s best-selling model, but it’s the oldest product in the company’s line-up. When asked why the Grand Cherokee continued to perform so well, Flynn responded, “First of all it doesn’t look as old as… like me, it’s ageing well (laughs). It’s still a very competent product, and I think the styling cues that have been changed as we’ve gone through the lifecycle have done well; it looks great on the road and, let’s be honest, it still delivers, it’s got a very, very strong towing capacity and all those things, so it’s got a place in the market and it’s got a level of respect.

“If we can make sure that the confidence levels in us, and our back-up are there, then I still think there’s room for Grand Cherokee to grow.”

Jeep Compass sales are in the doldrums in Australia right now, but this is a vehicle Flynn is very enthusiastic about. After all, the Aussie-market Compass is built in India where Flynn used to be the boss. In fact, one of the main reasons Flynn is talking to me right now is to promote the revamped MY20 Jeep Compass range, which scores new safety tech as standard, a larger touchscreen display and several other upgrades. The Compass Trailhawk model is still stamped with a Jeep ‘Trail Rated’ badge, meaning the company regards it as a genuinely capable off-roader.

Following on from his comments earlier about Willys DNA being baked into every Jeep product, Flynn says, “Even Compass… all of the off-road, all of the approach angles, the break-over point, even on the normal Compass, it starts off as a 4×4…”

“With the Compass, I’m proud of the fact that we got such a high level of quality, when we went live building the right-hand drive vehicles – and there were four plants making the vehicle – and the car that comes from India to Australia is the highest quality off the line; durability is great and the vehicle is good. Now, of course, for the ’20 model year, we’ve packed it with safety equipment, we’ve put the big screens in, the nice interiors, we’ve changed the model line-up… and then of course you’ve got the Trailhawk.

“Even when we launched that vehicle (in 201… the off-road capability… was outstanding, and I think there is a substance to that vehicle that you don’t find in other SUVs.”

As our interview time slot came to an end, I managed to squeeze in a couple of more questions regarding what I perceive to be some odd pricing strategies in the Jeep line-up. Why, for example, is the Gladiator Overland almost as expensive as the Gladiator Rubicon, yet the latter gets so much more equipment including its Rock-Trac Active On-Demand 4×4 system, front and rear lockers, front sway bar disconnect, Fox dampers, BFG muddies and more?

“The vehicle, it is not just the sum of its components, but it’s actually a style choice, an application choice,” Flynn says. “We’re doing nicely with Overland but actually the Rubicon is obviously where a lot of people have gone, so the big question is what do you want to do with it? I’m glad I’ve got Overland because otherwise it would be too polarised.

“We’ve got another (model grade) coming; we are launching a Sport S, which is going to be fantastic spec but it’s going to be a great package, so we’ll end up with a nice range, and then people can best choose the application and style they have, so I think that’s the best way to position it, it’s actually more of a style thing, but understanding that the Rubicon is great value.”

[humdingerslammer]

“.... now there is a lot better link up with technical, customer service, parts acquisition, the whole thing is now really streamlined and cross-functional. It’s working so much better.”

Well, well, well. This is just hype and a case of bullshitters believing their own bullshit.

Case #1. So I had a rear diff seal replaced on the JKU (by other than Jeep). The guys who did the replacement ordered the very specific and correct seal for the JKU 3.8 and were sent the wrong one. The JKU was on the hoist, with its guts stripped out for an extra 3 days while the correct part was waiting to be delivered. The changeover took 8 hrs or thereabouts but the so called streamlined and cross-functional customer service and parts acquisition was as disastrous as it has proven to be in the past and caused me 2B without the JKU for 3 days.

Case #2. I had to change valve cover gaskets that were spraying oil like an uncapped oil well in the Arabian desert. The guys ordered the gaskets from Jeep and were told they would get them in about 5 days. They still haven't about 30 days later. I ordered them from Quadratec USA and received them about 18 days later. They have now been placed into the JKU. The mechanics have still not heard from Jeep, despite ringing them several times, and this was when CV-19 had not closed the country down.

Case#3. "We did an evaluation of 17,000 part numbers that we sold last year, and we’ve re-priced those components"

Funny that.... For the price quoted for the 2 valve cover gaskets (without grommets for the retaining bolts) I had delivered to my front door 2 sets off valve cover gaskets with grommets, inlet manifold gaskets, water pump gaskets, EGR gaskets and some other bits and pieces. I can't see the re-pricing.... Also, even with $exchange rates, delivered to my door I got the same diff seal from the USA for less than half the price charged by Jeep.

Case #4: And then there is the labour cost. When I enquired (just out of curiosity) of Jeep what it would cost to change the valve cover gaskets I was quoted nearly $1000 in labour!!! WTF... 3-3.5 hrs labour means an hourly rate of about $285 per hour. R U SERIOUS!!! The guys did mine for about $100 per hr which seems to be the common charge for mechanics.

Case # 5: Re the Compass: I have not read any reviews praising this car: in fact it regularly features in about the top 20 worse cars that Americans are advised NOT to buy.

Apparently, [I]there’s a big button on the wall ”,and "the company is hitting the “reset button”.

I am still laughing!!! Perhaps its a really small button, or Jeep's etc people are really blind, or have a touch softer than a wet tissue. Too little too late. The public are still being taken for fools with some crap vehicles but even crappier service, and parts pricing.

Re "all of the DNA of the original Willys is baked into every Jeep built today" This is a romanticised version of what has always been a very basic and unreliable vehicle. The Jeeps of the WW2 era played their part but trying to capitalise on this 80yrs later is a big stretch. Even then they were not reliable.

Jeep should not make COVID-19 an excuse, directly or indirectly. It had laid the ground work for the shit it now finds itself in long, long, before now.

And >$90000 for the Gladiator.... get real. The modest 33 sales in July (Oz wide) were probably pre-orders from buyers too eager to wait to see what the rip off purchase price would be.Lets see how many more will sell...


Just my 2 cents worth...


And I like my JKU Rubi, but only when its not with Jeep service centres!

[Classic Boy]

I reckon given the pathetic sales numbers over the last few years that Jeep just like Holden will be gone from our market in under 5 years.
I am starting to believe with Covid impact on the economy they could actually be gone in 3.

[Clarky]

From what I gathered Gladiator Rubicon is actually on par with the USA as $60,000us for a Rubicon. That's about about $83,500au. I know I have seen the us sites say about $44k but at the dealer web sites in the US they say around $60k with the same spec as the Aussie version.

https://www.daytonadodgechrysler.net...jjtbg3ll145878

I think the only thing that will come close to improving the Gladiator sales is a diesel across the 3 trim levels when the sport finally arrives. Oh and a finance deal like the usa offers.

Unfortunately for Jeep it will only be us Jeep tragic's that keep buying but even I wouldn't even consider anything other then Wrangler, Gladiator or Grand Cherokee with their current offerings.

[bjm]

What colour is it? These adverts voted as the best mv adverts ever,sold record numbers of WKs ,still best bang for your buck on the market as a tow vehicle.
FCA should get another ad agency ,they still have a winner yet sales declining ! More WKs towing on the road than ever here in Qld,less Vics in their LCs for obvious reasons.

[FamilyTruckster]

Remember those Jeep factory endorsed clothing/fashion stores that were dotted around the country selling hoodies, t-shirts, hats and everything else? When they were around they were very popular and got the name out there. This was at the height of their popularity. Maybe doing something as simple as this again would be an easy and cheap way of getting people interested in the Jeep name again? Also, where do you now get this sort of stuff at a reasonable price?

[LSE3.9]

It all sounds hunky dory but I don't know if I could trust them again. I've had 2 XJ Cherokees and a Pentastar JK Wrangler Unlimited Sport.

The first XJ was a magnificent car. The second was an absolute disaster and Jeep couldn't get rid of it and me off their books when the warranty expired. The problems then continued at my [substantial] cost for the next three years. All up repairs were costed at some $25G.

After a break from Jeep I bought the Wrangler and it was a great car. No issues....BUT.... six monthly servicing was required for warranty and in the first year they were pricey but tolerable. Then I was advised that the next years 2 x services would cost over $4G...and be ongoing. This was something which they lied about when I was buying the car. No way so at a big loss the Wrangler was sold.

Could or should I trust them again. Dunno.....but probably not.

Re parts prices. There was an Oz thread where I read about a windscreen washer bottle costing $1000.00. I've looked at later prices and saw it was $750.00. WOW....for a moulded bit of plastic that should last the life of the car and only cost some $50.00 at most.

I'm due to replace my current ride at the end of the year and would prefer a Jeep as a replacement. I've been watching Mr Flynns progress as head honcho but as I said earlier......can they be trusted??????? Dropping some $80G on a new Jeep is no small matter.