Jeep to stop stocking ICE models in CARB states

[silvrsvt]

https://delawarebusinesstimes.com/news/jeep-gas-delaware/

 

So this begs the question, why isn't GM or Ford doing the same thing? Is it because they offer more EV or P/HEV offerings?

[Chrisgb]

2 hours ago, silvrsvt said:

https://delawarebusinesstimes.com/news/jeep-gas-delaware/

 

So this begs the question, why isn't GM or Ford doing the same thing? Is it because they offer more EV or P/HEV offerings?

I think it might be that most Stellatnis franchisees are part of dealer groups  Some customers will drive by the Jeep dealer and see one or two Wrangler 4XEs and head to their Ford or GM dealer for a Bronco or a midsize pickup, whether they are aware of the dealer ownership or not. Off lease and rental return Wrangler prices will probably increase. It might turn out to be a shrewd move on Stellantis' part. Shortly after Bronco came out, they had the molded-in color problem with the hard roofs and production was delayed. Some Bronco intenders cancelled their reservations and got Jeeps or other vehicles, but most held on and took the Bronco. Ergo, most folks will hold  fast, if it is a desirable vehicle. Jeep Wrangler has a loyal following and Stellantis may be betting that a few will take the 4XE, or another brand, but betting that most ICE Wrangler buyers will shrug their shoulders and wait for an OTD ICE Wrangler to be built. This could be the start of moving the market to more of a European business model where most dealers don't stock acres of vehicles for spot delivery.

 

Edited March 6 by Chrisgb

[silvrsvt]

30 minutes ago, Chrisgb said:

I think it might be that most Stellatnis franchisees are part of dealer groups  Some customers will drive by the Jeep dealer and see one or two Wrangler 4XEs and head to their Ford or GM dealer for a Bronco or a midsize pickup, whether they are aware of the dealer ownership or not. Off lease and rental return Wrangler prices will probably increase. It might turn out to be a shrewd move on Stellantis' part. Shortly after Bronco came out, they had the molded-in color problem with the hard roofs and production was delayed. Some Bronco intenders cancelled their reservations and got Jeeps or other vehicles, but most held on and took the Bronco. Ergo, most folks will hold  fast, if it is a desirable vehicle. Jeep Wrangler has a loyal following and Stellantis may be betting that a few will take the 4XE, or another brand, but betting that most ICE Wrangler buyers will shrug their shoulders and wait for an OTD ICE Wrangler to be built. This could be the start of moving the market to more of a European business model where most dealers don't stock acres of vehicles for spot delivery.

 

 

I think its more then that-other products are also affected by this like the Hellcat-apparently its directly due to CARB ZEV standards taking effect. 

[silvrsvt]

Ah found it

 

Stellantis Complaint Challenges Autonomy of CARB

 

Stellantis, in its complaint to California’s Office of Administrative Law, is challenging the legality of a 2019 agreement entered into with CARB by Ford, BMW Group, Volkswagen Group and Honda that gave those automakers favorable treatment in the state with regard to its strict clean-air regulations. Stellantis says, though, that CARB has put it at a competitive disadvantage because the agency cut “side deals” with competing automakers that don’t hold those companies to the same rules.

In 2019, those four OEMs made agreements with CARB based on their production plans to reduce greenhouse gas emissions from their vehicle fleets – pledging to get its national fleet cleaner through 2026 at about the same rate as the former Obama-era program, preventing, as CARB noted when it made the deals, “hundreds of millions of tons of greenhouse gas emissions over the lifetime of the agreements.”


The OEMs agreed to increase vehicle fuel economy of their fleets 3.7% year over year between model year 2022 and model year 2026. Meeting this goal with just fuel-efficiency improvements would require car companies to average 51 mpg (4.6 L/100 km) by 2026 across all their offerings for California. But the special agreements cut with CARB let the automakers meet this target in other ways, too, such as selling more electric cars and plug-in hybrids nationally.

 

Stellantis is at a disadvantage in that it only sells two hybrids – the Jeep Wrangler 4xe and Chrysler Pacifica Hybrid, and chose not to pursue a deal with CARB. Plus, it does not get the benefit of national sales factoring into its compliance as the other four do.

 

So they basically shot themselves in the foot