Jeep working on quality issues

Jeep's global boss has conceded the brand has been doing it tough in Australia on the back of a spate of product recalls and resultant drop in consumer confidence. 

But Mike Manley says the American SUV manufacturer has strong measures in place to restore consumer confidence and tackle plummeting local sales, with the possibility of introducing a more attractive five-year new-vehicle warranty being considered.

In a feisty, free-ranging chat with Australian media at the Los Angeles motor show, Manley, who holds three roles within the giant Fiat Chrysler Automobiles - the global president and CEO of Jeep, the CEO Asia Pacific and more recently the head of the Ram brand - conceded that "Australia is tough for us". 

"We've certainly lost significant volume and there's a number of reasons for that; customer satisfaction and reliability over the last 24 months are not where they should be," he said.

This year there have been local 17 recalls of Jeep vehicles, making it the most recalled automotive brand in Australia.

"Nobody is happy about recalls," conceded Manley. "But if you respond correctly to get the vehicles fixed, it's the best thing [a brand] can do.

"We're responding in the right fashion.  We continue to work with the agencies, we continue to improve our vehicles and our internal warranty is showing that this is clearly working.

"But the environment we're in - not just us but other manufacturers as well - is that there is much more heightened awareness and much more drive to recall vehicles.  It means today we are making more recalls than we've done in the past."

Manley blamed several price increases relating to currency shifts for having a big impact on Australian sales, which have more than halved since 2014's high of 30,400.

He said that Jeep was working meticulously to raise customer satisfaction at dealer level and by streamlining spare parts availability and delivery.

"I'd love to get back to 30,000 sales and more," said Manley, adding that he believes the adventurous, go-anywhere spirit of Jeep very much matches the attitude of Australians.

"If we get things right, we should get back to that mark quickly.  I'd love it to happen within two years, but it won't be easy. I recognise we have a lot to do." 

Manley said that Pat Dougherty [former CEO of Jeep Australia] started the process of repairing customer satisfaction, and that new local boss Steve Zanlunghi is continuing to add building blocks.

Giving the Jeep buyer the added protection of a longer five-year warranty is on the table, with a decision likely next year.  Jeep Australia is also targeting ownership costs, specifically with initiatives like the just-introduced pre-paid maintenance offers and "drastically" reducing  prices of fast-moving spare parts.

Crucial to the Jeep fightback too are modern new products like last year's Renegade baby SUV and the 2017 Compass, a new global compact SUV built in four locations around the world and targeting many major markets.

Manley is also very pleased that in a market of ute lovers, the next-generation of the iconic Jeep Wrangler will be available as a dual-cab pick-up.  The departure of the Falcon and Commodore utilities certainly open broader sales opportunities for the Wrangler pick-up, he said.

The Jeep global boss also revealed he is fighting to get an all-new larger premium SUV - a halo vehicle to potentially go up against the Range Rover, despite concerns that Australians might be reluctant to accept a Jeep priced north of $100,000, even with its extra seating.

Manley also mentioned his wish list could extend to a super compact SUV, but added "the time will come when we might need one of these."

Right now though, Manley and Zanlunghi are fully focussed on restoring Jeep's reputation and sales results.

"We're getting there. But it takes time for perception to catch up to reality," said Manley.

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