Jeep has been on a roller coaster over the past few years. Sales suffereddealers are sitting on inventory that is moving heavily discounted, quality has deteriorated, and worse still, their vehicles become too steep for many potential buyers – the company admits this even though it has just launched $70,000 for an electric vehicle. Jeep is also remarkable for the countless options, finishes, and colors it offers to customers. That could end soon if one Jeep executive has his way.
I am talking with Drive, Jeep senior vice president Bill Peffer explained how the brand should probably start reducing the amount of equipment on some of its models, mainly the Wrangler and Gladiator. And he may be right. The Wrangler has perhaps one of the most extensive catalogs on the market: two- or four-door configurations with an optional hardtop or convertible, three engines and eight trim levels ranging from $36,595 to $100,590. This does not apply to the Wrangler 4xe.
Peffer explained the brand’s reasoning using the recently introduced Wagoneer S as an example.
We are a mass brand. We sell things in vast quantities – much larger than, say, a Maserati. Complexity reduction is something that happens all the time and we could probably do a little more of it. One way to deal with complexity is to launch a product like the Wagoneer S in a single configuration.
Reducing overlays isn’t just about reducing the number of overlays and making customer service easier. Peffer says it’s also about quality control. All these different finishes augment the complexity of production. And given Jeep’s recent reliability issues, they can’t afford any hiccups. “So, [that] for me it is intriguing in reducing complexity. Not only do you generate more efficiency, but you also have fewer opportunities to make mistakes,” he explained.
If the combination of quality control, lower prices and reduced model complexity works, customers may start showing up at Jeep dealers again.
