Wrangler Price Increase Coming?

[NWJeepr]

first a tariff on a vehicle is only going to be the percentage of parts from the other country not on top of total price. Even a ram built in mexico, has a vast amount of US made parts. Lets be honest, they build rams in Mexico, because the unions forced the companies hand

second, tariffs will go away as soon as deals are made, mark my words.

You realize the US parts cross the border and are tariffed going into Mexico because reciprocal tariffs.

Then, when the truck comes in to the US, it's tariffed again. That time, the whole truck.

What deals are we hoping for? What is the goal?

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[Whaler27]

“You reap what you sow.” If you didn’t see this coming, you haven't been paying attention or you get your information from people in their basement on YouTube.

Either way, glad I finished most of what I wanted to do with my Jeep already. I can’t wait to see when everyone starts asking “how do I get better gas mileage?” After our energy prices skyrocket.

In the short term I expect slight increases in fuel prices, but in the longer term I expect a steady decline (in inflation-adjusted dollars) as domestic production is increased.

Pipeline construction should also help reduce transport costs.

Tariffs increase prices, so if they remain in place in perpetuity they’ll keep prices artificially high —- but I doubt they’ll remain even a year, as the US is essential to the Canadien and Mexican economies. I believe the tariffs are a negotiating tactic, and as soon as the objective is achieved the tariffs will be mitigated or eliminated. .

Of course, I don’t have a crustal ball. I guess we’ll see soon enough.

But whatever else happens, I don’t think we’ll be seeing big price increases on the electric jeeps nobody wants to buy at lower prices.

 

[gato]

A - Price and cost don't have a direct relationship. Jeep has been charging more than the market could bear, and is already reducing prices regardless of cost.

B - Imported parts from China/Mexico/Canada on a Wrangler are a small portion of the cost, specially after trivial substitution - e.g. using Korean steel instead of Chinese, using US wheels instead of Mexican.

C - Tariffs are not a permanent thing, they are simply a negotiating tool.

So let's say on a Wrangler that has an MSRP of $60K. It has a cost to build of probably $48K. At most $5K of that is Mexican, Canadian or Chinese parts. Let's say there is a 20% tariff, that is $1K cost increase, that may only last a few months. And Jeep may decide to eat the higher cost and not raise prices.

So, so much noise, so many pages for something that is a rounding error on the price of a Wrangler.

 

[Tncdrew]

I absolutely crack up every time you post that clip! (love it)

 

[NWJeepr]

A - Price and cost don't have a direct relationship. Jeep has been charging more than the market could bear, and is already reducing prices regardless of cost.

B - Imported parts from China/Mexico/Canada on a Wrangler are a small portion of the cost, specially after trivial substitution - e.g. using Korean steel instead of Chinese, using US wheels instead of Mexican.

C - Tariffs are not a permanent thing, they are simply a negotiating tool.

So let's say on a Wrangler that has an MSRP of $60K. It has a cost to build of probably $48K. At most $5K of that is Mexican, Canadian or Chinese parts. Let's say there is a 20% tariff, that is $1K cost increase, that may only last a few months. And Jeep may decide to eat the higher cost and not raise prices.

So, so much noise, so many pages for something that is a rounding error on the price of a Wrangler.

Except that Jeep builds cars in Mexico and those little cars likely have less margin than a loaded Rubicon.

Stellantis’ net profit was already down 70% at the end of 2024. Its very likely higher margin models will have to absorb price increases on the smaller cars.

Analysts fully expect this could wreck the US auto industry in short order.

 

[Tncdrew]

So, so much noise, so many pages for something that is a rounding error on the price of a Wrangler.

Precisely!!

 

[Dusty Dude]

You realize the US parts cross the border and are tariffed going into Mexico because reciprocal tariffs.

Then, when the truck comes in to the US, it's tariffed again. That time, the whole truck.

What deals are we hoping for? What is the goal?

The goal is to have all current tariffs against the US removed.

 

[Flip]

Hey! This thread is starting to sound political!

That's Governor Menalaeus "Pass the Biscuits" Pappy O'Daniel and he'd sure appreciate it if you ate his farina and voted him a second term." Ain’t you gonna press the flesh, Pappy? Do a little politickin’?
Pappy: I’ll press your flesh, you dim-witted sumbitch! You don’t tell your Pappy how to court the electorate! We aint one-at-a-timin here, we're mass-communicating! Junior, Yes it's a powerful new medium. Pappy-Shake a leg Junior! Thank God your mammy died givin’ birth. If she’d have seen you, she’d have died o’ shame.

 

[Scotty Scout]

It seems like our fuzzy math calculations are being based on the fallacy that a Jeep Wrangler is being built from 90% USA sourced parts when its actually more like 70%.

Also, the cost of that 70% USA content will likely go up as well due to the increased demand and supply shortages caused by automakers shifting their current supply chains to avoid tarrifs.

It really seems like a serious recession is on the horizon coupled with substantial increases in the cost of everything. If that happens, a lot of people will just be focusing on making ends meet and a lot of potential customers are going to go *poof*.

I really think that Stellantis is in serious trouble here...

 

[JPAloha]

At the risk of sounding political and getting banned, I think it’s naive of anyone to think that the tariffs are anything but a bullying technique. Its also naive to think that they only get applied once, it will happen every time a part, good or vehicle crosses the border.

Will it increase prices? Definitely.
Has this genius move alienated your closest ally and neighbors? Absolutely (good luck with that 51st state idea) !
Can that damage ever be undone? Based on the overwhelming sentiment up here…absolutely not - to be clear there are widespread boycotts of US companies and products, people selling US properties and cancelling trips. A bear has been poked and based on what I see, people are either unaware of the backlash this has generated or economics isn’t their subject.
All three economies are going to get hurt but two countries have global sympathy and one has become less popular than ever before.

For us, we cancelled our trip to Moab, we have stopped buying US products, we will not buy another Jeep and may even sell two of them.

 

[rforbes]

First, as you might remember with COVID, when the manufacturers smell blood in the water and think they can increase prices, they do. Second, Yeah, Jeeps are expensive. But all cars are expensive now days and when lots of them start increasing in price you will see all of them follow along.

 

[rizzosmith]

There is no way FCA is going to increase prices in the US. They are already struggling in the market with lots of left over 2024's, EV's they can't sell and no-one wants, and they are already over priced and offering incentives on everything. If anything, they might even drop prices to move inventory. Sadly, the last CEO ran the company into the ground, and they have a lot of catching up to do.

I agree with most of what you said, the problem is the first sentence.

If the prices for the parts they receive from Canada and Mexico go up that will most certainly be passed on to the consumer. Any feelings we have about too many EV's, past price increases, poor customer service, etc. aren't going to compel FCA to eat the difference. Decisions like that get CEO's fired at shareholders meetings.

 

[JINO]

Glad I got most of my mods already done. All I got left is tie rod, drag link, regear, and maybe axle shafts, oh and ball joints.

Metalcloak is made in USA (I THINK), so is Revolution gears. So hopefully not too much a price hike.

 

[Bulletbill]

The goal is to have all current tariffs against the US removed.

The deal in 2020 had already removed those Tariffs. There is absolutely no justification for what is going on today. Warren Buffett said it best when he said it equates to an act of war.

 

[Bulletbill]

At the risk of sounding political and getting banned, I think it’s naive of anyone to think that the tariffs are anything but a bullying technique. Its also naive to think that they only get applied once, it will happen every time a part, good or vehicle crosses the border.

Will it increase prices? Definitely.
Has this genius move alienated your closest ally and neighbors? Absolutely (good luck with that 51st state idea) !
Can that damage ever be undone? Based on the overwhelming sentiment up here…absolutely not - to be clear there are widespread boycotts of US companies and products, people selling US properties and cancelling trips. A bear has been poked and based on what I see, people are either unaware of the backlash this has generated or economics isn’t their subject.
All three economies are going to get hurt but two countries have global sympathy and one has become less popular than ever before.

For us, we cancelled our trip to Moab, we have stopped buying US products, we will not buy another Jeep and may even sell two of them.

Sadly we were looking forward to a trip to Canada this year, but ended up canceling it because of the problems created by the current administration.

It is an unfortunate situation all the way around, one as you said that won’t soon be forgotten by our former friends. I think the saying is “once someone shows you their ass, that’s all you ever see in the future.” Well our ass is on full display

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