Bronco Market Share down to 25%, while Jeep is 40% and 4Runner 35%

[NYtoCALI]

Overestimating projected sales has been around probably since the Stone Age. I my short 50 years in the business world, I’ve seen it more times than I can count. But, you always reach for the fence, if you don’t reach, you certainly won’t get there.

Well said. 35 years in business myself. Factories love pie in the sky. Then play damage control later.

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[HoosierDaddy]

They need to roll back the MSRP increases from the past two years.

Lowering the price from one year to the next essentially never happens, it pisses off the customer base.

But if you offer steep discounts and rebates .... buyers flock to the lots to catch the deal.

Same marketing psychology as Kohls ALWAYS having something steeply discounted... 75% or more ..... after they marked it up 400%.

 

[Brian_B]

In terms of segment share, the Wrangler earned a 40 percent share, down one percentage point year-over-year. The 4Runner posted a 35 percent segment share, down a 12 percentage points, while the Ford Bronco held 25 percent share, down 10 percentage points

Ok, if they were talking units I would get it…

But here it’s percentage market share. How can everything be going down? Wouldn’t that add up to less than 100% market share? Is there a 4th vehicle here that is now in the hunt we are all just not talking about?

Maybe I failed math in school.

I don’t know that production capacity is the reason - part of it is people waiting on ‘24 models, but I’ve seen plenty of Broncos on the lot in the past 6 months. That and all sales are down (since we are somehow under 100% market share), Bronco took a bigger hit than Wrangler but not as bad as the 4Runner.

 

[PlayTime]

The bronco is way overpriced given the current market and interest rates. They need to roll back the MSRP increases from the past two years.

I agree with what you say, especially when the Base model was killed and every option bumped in price and a big part of the Fun Factor disappeared. You can no longer build your own Basesquatch, and many combinations are now forbidden by tier. Feels like Ford threw the baby out with the bathwater.

 

[j_marinelli]

But if you offer steep discounts and rebates .... buyers flock to the lots to catch the deal.

Same marketing psychology as Kohls ALWAYS having something steeply discounted... 75% or more ..... after they marked it up 400%.

I think you hit the head of the nail here. I view these price increases as a way to turn around and bring back the discounts we use to see pre Covid.

 

[TrailDust]

Bronco was the shiny new toy which drove up demand and prices. Now it's yesterday's news. At heart the Bronco is an off road vehicle that has a rice crispies IFS, whereas the Wrangler has a proven drivetrain that is easy to lift, robust, and will get you home. When your brand ambassadors have all dumped $5k into steering upgrades and $20k in portals the average guy will never afford that's not a good picture. For mild wheeling or for looks the Bronco is great, but when the front end goes snap, crackle and pop with a lift and 37's that's a problem. As much as I like my Bronco I wish I'd kept my JL for ease of lifting it. I am saving up to do all the necessary upgrades but does suck knowing how much more bang for the buck I would have gotten putting the same money into the Jeep.

 

[5GENIDN]

There is so much that is lacking here..... There is so much more to this than Market share....

I tend to think about things in a simple way (I am a simple man, or a simpleton.....)

I would not care as much about Market share as I would profitability, and opportunity costs.

For example. I would rater sell 100 units at $10 profit than 900 units at $1 profit. 900 units has 90% of the market but profit is only $900 where as my 10% of the market has $1000 profit... Hhhmmmm...

Then I have the opportunity costs: If I make 900 units It could be requiring 900 employees to make those units but if I only make 100 units it only requires 100 employees. Could my 800 employees be working on something else that will make me money?

And if I am selling units at a steep discount I am probably not making as much money... in fact am I making money? I sure would not want to sell 900 units at a loss. Although I would rather do that than not sell them at all and take a total loss. I am not going to be making those for very long, I am going to find something else to make.

New vehicles are like fruit. The longer they sit on the lot the less they are worth. Hence the steep discounts on last years model every time a new model year is released.

But if I sell them at a loss I could easily increase market share!

 

[BroncoDymond88]

Looks like all the MSRP increases pushed the Bronco out of affordability for a lot of people.

 

[Compta38]

I built my exact Bronco I paid $52k for in summer of 2022 and it's currently around $65k. There is absolutely no way I would pay that for a Bronco. There are far too many options that are cheaper, better built and more reliable in the long run. The absolute top end on these things should be $50k with an entry price of about $32k.

 

[Compta38]

Although I'll admit I don't quite understand why 4Runner sales jumped so much given we're so close to a new generation. Maybe they just had insane incentives... not sure.

buddy if mine just bought a new TRD Off-Road Premium instead of opting to wait. His reasoning was the NA engine and not having to wait for the bugs to be taken care of with a new launch vehicle. I will be buying the new 4runner but will be at least 2 model years out, that is unless the rumored FJ pops it's head up.

 

[BroncoBuckaroo]

Jeep has been giving incentives last year and this year. Jeep still hasn‘t sold last year models out.

https://www.jeep.com/gladiator.html...VDU9HAR0DOAlOEAAYASAAEgJtTfD_BwE&gclsrc=aw.ds

you are not getting incentives on Broncos. I would be interested in knowing how many Jeeps were left from 2023 vs Bronco’s etc. Jeep has been pumping out Jeeps for a long time, and even Toyota with the 4 runner been in the game longer than the new Bronco platform. And to grab that much marketshare in that little time is actually quite commendable.

 

[North7]

Ok, if they were talking units I would get it…

But here it’s percentage market share. How can everything be going down? Wouldn’t that add up to less than 100% market share? Is there a 4th vehicle here that is now in the hunt we are all just not talking about?

Maybe I failed math in school.

I don’t know that production capacity is the reason - part of it is people waiting on ‘24 models, but I’ve seen plenty of Broncos on the lot in the past 6 months. That and all sales are down (since we are somehow under 100% market share), Bronco took a bigger hit than Wrangler but not as bad as the 4Runner.

I'm not sure which figures you are referring to? In the posted table, Bronco lost market share Q1 23 to Q1 24, from 35% down to 25%. Jeep lost 1% and 4Runner gained 12%. Also, the Q1 24 adds up to 100%, Bronco 25% + Jeep 40% + 4Runner 35% = 100%.

Regarding a 4th vehicle, are you referring to the new Land Cruiser 250, the new 6th gen 4Runner or the upcoming Land Cruiser (baby) FJ, or the rumored Mini-Jeep?

Regardless, when any or all of those hit the dealer lots, Bronco's market share will further plummet.

 

[VDPHB]

100% agree with MSRP and dealer ADMs being significant factors, along with interest rates. My 2022 Badlands is almost $7k more today.

Another factor not mentioned in the article is fleet sales (aka rentals). In CA and Hawaii, there are TONS of Wranglers 4XEs and Gladiators on the rental car lots.

While fleet sale numbers wouldn't make up for the market share deficit, they definitely would impact it. After all, how many Broncos do you see for rent?

Also, I don't think anybody really expected Bronco to take over the market that Jeep created, plus the 4Runner is a much better daily and family vehicle.

 

[Laddyaddy19]

The bronco is way overpriced given the current market and interest rates. They need to roll back the MSRP increases from the past two years.

I agree but that can be said for every new vehicle right now. It might be because of the Bronco being more of a niche vehicle. What are your thoughts?

I am a day one reservation holder and love my Bronco. Luckily I bought mine at MSRP early. I love my Bronco and it fits my purposes well but I definitely wouldn’t buy right now with the interest rates and msrp being so high like you said.

 

[techdisaster]

I adore my bronco, I really do. but fuck Ford corporate sideways with a cactus, my next vehicle is a Toyota.

My sentiment exactly. My Bronco is the most fun vehicle I have ever owned. But I’m not buying another Ford until major upheavals take place.

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