It’s going to be a shot/chaser kinda day here at The Morning Dump as I recover from the one-two punch of a presidential debate and extra-inning baseball last night. The good news is the universe is here to perk us up with a smidge of irony and a whole heaping of WTF.
Let’s start with Jeep’s CEO and his plan to make sure the new electric Jeep Wagoneer S is basically perfect before it launches. This seems like a sound strategy given the misfires on EVs and other vehicles from American brands lately [Ed Note: And all brands, really; EV rollouts have been rough, especially from a software standpoint. -DT], and it’ll run against a risk of actual fires in potentially hundreds of thousands of Jeep Wranglers and Gladiators.
Car lenders (and lenders in general) are starting to get nervous as delinquencies tick up amid a softening economic picture. That would have been a good talking point, potentially, for former President Trump in his debate with Kamala Harris. Instead, he talked about… other things. We did get a little mention of carmaking from both, though it was definitely overshadowed.
Is it only Wednesday? I’ve been informed it’s only Wednesday. Let’s get into it.
Shot: Jeep CEO Wants “Perfect” Launch For Jeep Wagoneer S
Stellantis has a lot to do if the company wants to prove it deserves Jeep. One of the brand’s big initiatives is the first electric Jeep (for North America), the Jeep Wagoneer S. I agree with Thomas that it looks like an attractive electric SUV while also not looking particularly like a Jeep.
This is clearly a product of Jeep’s probably misguided dream of spinning off Wagoneer as a Range Rover competitor. I remain unconvinced this is going to sell in large numbers, especially with a $70,000+ price tag. I feel like if Lucid can get anywhere near the price for the Gravity it’ll be a no-brainer.
Still, it’s important for the brand to not screw this up, and Jeep CEO Antonio Filosa, pictured above, insists he’s going to make sure everything goes perfectly.
From a recent Vince Bond, Jr. interview in Automotive News:
The mandate for the vehicle, he said, is clear: “No launch if the quality isn’t perfect.”
“It carries the responsibility of being a Jeep, No. 1, but also it carries the unique responsibility to be the first battery-electric vehicle for Jeep in the history of the North America market, which is the most important market,” Filosa told Automotive News. “I want perfect quality, and I know that we are close, but close is not good enough. Timing is important, but more important than that is to be perfect for the consumers that will give us the privilege to buy this car.”
The “first battery-electric vehicle for Jeep in the history of the North America market” is a funny line, and he has to say it because there’s already an electric Jeep and one, I think, that might be a better fit for North America.
I’m talking about the Jeep Avenger, of course, which is just a little Jeep-shaped EV city car, but is meant to be a lot more affordable. It’s not even built in China! It’s built in Poland. That would rule (also, this is why I’m not allowed to make product decisions for automakers).
Still, Ford has been playing catchup on quality for the last year, so good on Stellantis for trying to avoid that mess.
Chaser: NHTSA Is Investigating Jeep Wranglers And Gladiators That Are Randomly Bursting Into Flames
It’s always scary when a car catches on fire while someone is driving. It’s dangerous and destructive. It’s even scarier when a parked car just suddenly decides to roman-candle itself. I remember as a child, a neighbor’s truck was sitting outside his house when flames began to appear. By the time anyone noticed it was too late to save the truck or the garage.
If you’re a 2021-2023 Jeep Wrangler or Gladiator owner you might want to park your vehicle away from buildings for a while, as NHTSA’s Office of Defects Investigations has opened up an investigation into reports that parked Jeeps are self-immolating.
Here’s what NHTSA had to say about why they’re doing this now:
The Office of Defects Investigation (ODI) has received 9 Vehicle Owner’s Questionnaire (VOQ) reports, 1 Death and Injury report, and multiple field reports alleging incidents of engine compartment fires in model year (MY) 2021-2023 Jeep Wrangler and Gladiator vehicles. The majority of the reports describe a fire occurring while the ignition in the vehicle was in an ‘OFF’ state with a suspected origin at the passenger front side of the engine compartment. An ignition ‘OFF’ vehicle fire can result in an increased risk of occupant injury, injury to persons outside the vehicle, and property damage, with little to no warning.
ODI has contacted the vehicle manufacturer, Fiat Chrysler Automobiles (FCA), and learned of several thermal events originating at the power steering pump electrical connector in recent model year Jeep Wrangler and Gladiator vehicles. The location of the pump connector is located at the passenger front side of the engine compartment, coinciding with the majority of fire reports known to ODI.
It’s amusing that they still refer to Stellantis as FCA here, but it doesn’t really matter. The investigation might result in a recall once the cause (possibly something to do with the power steering pump connector) is confirmed.
Shot: Lenders Getting Wary About The Future
I’ve been talking for a while about the terrible period of loans (called ‘loan vintages’) that were made during the pandemic. These were relatively low-interest loans on cars with inflated, or trimflated, prices that were given to people who might have had a little pandemic stimulus cash in their pocket but probably wouldn’t qualify today for such a large loan.
So long as the economy stayed perfect, this wouldn’t have been a big deal. It obviously didn’t, and now a softening labor market combined with inflation means that many of these loans are turning delinquent as buyers can’t afford to pay them.
Large auto lender Ally Financial joined many other lenders yesterday in warning that, after a period of substantial profits, things might be getting a bit harder. As MarketWatch reports, Ally’s leaders are pointing a finger at the larger economy:
“Over the course of the quarter, our credit challenges have intensified,” Ally Chief Financial Officer Russ Hutchinson said at the Barclays Global Financial Services Conference in New York on Monday. “Our borrower is struggling with high inflation and cost of living, and now, more recently, a weakening employment picture.”
In retail auto loans, Ally Financial said it had seen delinquencies increase about 0.2% above its expectations.
Net charge-offs, which accounts for money that the lender doesn’t expect to be paid back, were 0.1% above its projections, Ally said.
Seemingly, these economic issues would have been front-and-center during the Presidential Debate last night, as well as the conversation about green jobs and cars.
Chaser: Not Much Discussion Of Green Cars During Debate
Donald Trump: “They are eating the dogs, they are watching the cats, they are eating the pets.” pic.twitter.com/tAP6fj10Yo
— Roman Sheremeta ???????? (@rshereme) September 11, 2024
I was really looking forward to a robust conversation about how to stimulate the economy without stoking inflation, the role of the Federal Reserve Bank, and whether EV tax credits really work. There’s a lot to discuss, and the economy seemed like a strong talking point for the Republican candidate. But that didn’t happen; we did get some wild soundbites like the one above, though. (Inadvertently, this is sort of a car issue as, per the New York Times, some Haitian immigrants are assembling cars at the local Honda engine plant though, per many other reports, no one is eating anyone’s pets).
There was a little car talk, with Vice President Harris pointing out that she supports green jobs:
I am proud that as vice president over the last four years, we have invested a trillion dollars in a clean energy economy while we have also increased domestic gas production to historic levels. We have created over 800,000 new manufacturing jobs while I have been vice president. We have invested in clean energy to the point that we are opening up factories around the world. Donald Trump said he was going to create manufacturing jobs. He lost manufacturing jobs. And I’m also proud to have the endorsement of the United Auto Workers and Shawn Fain, who also know that part of building a clean energy economy includes investing in American-made products, American automobiles. It includes growing what we can do around American manufacturing and opening up auto plants, not closing them like what happened under Donald Trump.
Hey, Shawn Fain reference! Take a shot! The above seems mostly true, though with revisions it’s possible that the total new manufacturing job amount might be closer to 700,000. Automobile jobs, if you include dealership jobs, did fall a bit during the Trump administration, but it wasn’t like there were widespread plant closures, and there was that whole pandemic thing.
How did Trump respond?
That didn’t happen under Donald Trump. Let me just tell you, they lost 10,000 manufacturing jobs this last month. It’s going — they’re all leaving. They’re building big auto plants in Mexico. In many cases owned by China. They’re building these massive plants, and they think they’re going to sell their cars into the United States because of these people. What they have given to China is unbelievable. But we’re not going to let that. We’ll put tariffs on those cars so they can’t come into our country. Because they will kill the United Auto Workers and any auto worker, whether it’s in Detroit or South Carolina or any other place. What they’ve done to business and manufacturing in this country is horrible. We have nothing because they refuse — you know, Biden doesn’t go after people because supposedly China paid him millions of dollars. He’s afraid to do it. Between him and his son. They get all this money from Ukraine. They get all this money from all of these different countries. And then you wonder why is he so loyal to this one, that one Ukraine, China? Why is he? Why did he get 3 1/2 million dollars from the mayor of Moscow’s wife? Why did he get — why did she pay him 3 1/2 million dollars? This is a crooked administration, and they’re selling our country down the tubes.
There are auto plants in Mexico, though a lot of them continue to operate because of the USMCA trade agreement that then-President Trump negotiated. There are no massive Chinese auto plants in Mexico and, in fact, the only carmaking facility is a small joint venture with a local company that makes small Chinese city cars from knockdown kits. There was talk of Chinese automakers building plants in Mexico, but a combination of huge U.S. tariffs from the Biden administration and a negative reaction from Mexico’s government makes it less likely to happen anytime soon. And even then, it’s unlikely those cars would ever come to the United States.
I’m not going to touch the rest of it.
What I’m Listening To While Writing TMD
Does “Abracadabra” by the Steve Miller Band count as a Halloween song? It’s a big debate in the Hardigree household. Also, this video is insane, how have I never seen it before? It’s extremely literal, with some weird psycho-sexual undertones. And magicians.
The Big Question
Is The Jeep Wagoneer S the right product for Jeep right now? What would you like to see instead?
That’s quite the blistering image for a post made on 9/11 lmao.
“Oh my god they hit the second Jeep”
Why has the 4XE drivetrain not made it to the GCL yet?? I thought that would have happened 2 years ago.
Also the Wagoners need the Ramcharger drivetrain. (The EV with the pentastar as a range extender/power generator)
GC 4XE owner. If I recall its something to do with the logistics of locating the battery, 3rd row footwell and fuel tank. Basically have to pick 2/3.
Oh NOW they demand quality. How lovely.
After supervising backstage security for a dozen years you end up with many “glory days” stories. Hearing Steve Miller reminds me of one of my most puzzling one. I had a position at a VIP parking lot that was always hard to fill as everyone wants one near the stage. A guard that wasn’t on my normal crew said he would work that position for the next 6 concerts if I let him work backstage for the upcoming Steve Miller concert. He said he was the biggest Steve Miller fan in Texas. He did his 6 concerts and I gave him artist entrance for SMB. Steve Miller pulls up in a limo gets out and walks straight up to the guard. He stops and talks to the guard for a few minutes. Steve then heads for his dressing room . Thinking I had just made this guy’s year I walk up to him and he says to me. “Man, when do you think Steve Miller will show up.”? Needless to say he never worked on my crew again!
The father of a friend of my sister owned a company that did stage-fitting for large concerts, including the Rolling Stones. His beefcake Cockney fitters also worked as security.
Andy Warhol walked up to the entrance of a Stones backstage party, expecting to be let in automatically.
“Sorry, mate, backstage passes only.”
“But… I’m Andy Warhol!”
:
:
:…..”Andy Who-hole?”
My hardest turn away was the world famous heart surgeon Dr. Michael DeBakey at a Frank Sinatra concert. My 2nd hardest was Pamela Anderson (no pun intended) at a Clint Black show.
Abracadabra: Not my favorite SMB song. It always felt like they went soft or commercial or something.
But TMD still rocks!
“opening up auto plants, not closing them like what happened under Donald Trump.”
Remember that time Trump told people not to sell their houses because he was going to save Lordstown? Probably not the best real estate advice. Does Foxconn Ohio even make cars anymore?
They’ve almost caught up with the legendary british reliability (see also the ‘Wrangler-on-fire’ follow-up story)
That got a chuckle out me
Do they not teach “Perfect is the enemy of good” in MBA school or something? I continue to think the remaining Stellantis leadership has no clue how to run the company. I swear the Autopian could collectively do a better job, even though all we would do is build stripper Wranglers with Hemis and manual transmissions and somehow resurrect the XJ. I mean, that’s still no stupider than what Tavares and co. are doing.
This is accurate
This is also accurate
Again, impressive accuracy.
Truth is, I don’t think Tavares and Filosa are the right guys to understand catering to the American market. Kuniskis made Dodge matter again by understanding his audience. He wasn’t perfect, but he did far better understanding his market than they have. To succeed, they might need a good old fashioned American at the helm.
I agree, and I made a similar comment on one of the Stellantis articles a while back. The Stellantis board is going to rue the day they let Kuniskis go and kept the executives that they still have. I’m not positive Kuniskis was the right person to lead the charge into hybrids and EVs, but he would have done better than the people they have in charge right now.
In fact, I propose that when the Autopian takes over Stellantis our first act be to hire Tim Kuniskis back. 🙂
Are you sure about that? Sergio Marchione did a pretty good job, much better than most of his ‘murican predecessors
Am I sure? Nah, not at all. Sergio did some good things, but he’s also behind the fact that the Wagoneer took 10 years to get built and was positioned as a $100K+ SUV.
Did he though? He was the one who instituted the business model of discontinuing strong selling products without replacing them, consolidated dealerships into multi brand showrooms, limiting the abilities of different brands to properly target different customer segments, and slashed R&D spending in anticipation of a merger with another automaker they could share platforms with, which took way longer than expected (not in his lifetime) and left them with an aging product range and little in the pipeline to replace it. He was more interested in merging the company with someone else than he was in actually running the company as it already existed
The reintroduction of Fiat and Alfa Romeo to North America was also bungled, and, especially in Fiat’s case, proved to be a waste of time and resources, for the company as well as it’s dealers
You’re not wrong.
I don’t know. If Autopian ran Stellantis everything would probably be a subscription, or at least require a “membership”. /s
That’s at least no worse than what every single car company out there is trying to do right now. 🙂
Rich Corinthian Leather in a Jeep? Sounds good ha ha
I think that perfect as the enemy (to getting your product on the market so you can make money to invest in improving the product) is more of an engineering (practitioner training from other engineers) and less of an MBA thing. You would be surprised just how little/narrow most MBA’s previous experience is before they enter B-school.
I get wanting your product to be as good as possible and trying to motivate everyone working on the project, but “perfect” is a level of hubris reserved for out-of-touch C-suite executives speaking out of their asses. There’s no such thing as perfect. Porsche can’t do it, Toyota can’t either, so Jeep sure as hell has zero chance of perfection. Sounds like a great way to set up everyone for failure.
I’m pretty sure the opposite of “perfect” is Ford, the undisputed recall king
Those Jeep owners better make sure they have bunch of the rubber duckies dressed as fire fighters in their vehicles. That will make sure if a fire does start it will be put out. They also should take all other duckies out so they do not get harmed when said fires start.
I will never understand why they felt they needed a Wagoneer sub brand to move up. Model sitting above the GC, OK, but Jeep is a very rare nameplate that appeals to and is attainable to a wide range of income, something other brands spend billions and a lot of long years trying to achieve with often very limited success. GCs and Wranglers sit in the driveways and garages of mansions already, yet are at least affordable in a stretch to people who are not wealthy. There’s probably another one out there, but off hand, I can only really think of Mustang—and that’s a model—that has that same kind of income agnostic appeal. Other names are too premium or too downmarket.
Unfortunately they are not affordable any longer. The real kicker is that they tried to move the Grand Cherokee upmarket also with the new model and the L trim right at the same time that Kia/Hyundai started eating their lunch with that telluride deal.
It’s frankly shocking to me how badly mismanaged the company has been. It bothers me and I’m pretty far from being a Jeep person.
The original Grand Wagoneer had been AMC & Chrysler’s best entry into wealthy homes, Grand Wagoneer buyers in the 1980s had the highest household net worth of any domestic brand car buyers. Higher than Cadillac, higher than Lincoln, they typically owned at least 2 other vehicles, and those other vehicles were typically import brand luxury models, with the Grand Wagoneer as their lone domestic purchase.
Unfortunately, they screwed it up by making the next Grand Wagoneer a cynical rebadge of the Grand Cherokee with wood grain decals, it flopped, and only lasted a few years on the market. Even more unfortunately, they proceeded to do nothing further with the name for nearly 3 decades, squandering any brand equity through disuse, while the sorts of people who bought the original Grand Wagoneer satisfied themselves with Range Rovers and G-Wagons. Then, they brought the name back, but in a model with no obvious DNA from the famous original, and expected to immediately grow it into a larger, aspirational subbrand overnight, ignoring the fact that, because the Wagoneer name had been gone from the market for so long, contemporary buyers had little recognition of what it meant and was supposed to be, making it effectively the same as creating an all-new name from scratch, and you can’t just do that kind of thing with a new name right away, you have to build recognition and brand equity first before extending it. They moved way too fast
Exactly. So many brands would kill for Jeep’s wide appeal and loyalty (that it seems like they’re really testing lately). I don’t know how the people in charge of these companies making big bucks can be so head-smackingly incompetent (and stay employed). Jeep is the name they have to move upmarket already, not Wagoneer (anymore), so why would they not use the name that everyone knows? Instead, they reintroduce an old model that most don’t remember and bears no obvious connection to the original for those who do remember as its own brand?! Yeah, as you mention, maybe 30 years ago it could have worked as a brand, but now? And with such a phoned-in effort! I don’t get the obsession with breaking out brands, anyway (Ram separate from Dodge is also stupid)—all it does is confuse customers (if they even notice) and cost money to market the BS change. It’s especially ridiculous coming from Stellantis, which already has a cheese-and-meat-stuffed assload of under-utilized brands barely hanging on that they’re neglecting and some that should be killed off. Last thing they need is to introduce more. The whole thing reeks of dumbass MBAs, which OK, MBAs are going to MBA, but the executives should know when not to listen to bad ideas.
You forget that the executives are also the MBAs.