SUVs Are Hotter Than Ever, But Jeep May Be Building Too Many Wranglers
By Gabrielle Coppola
Updated on
An unexpected spike in inventory of Fiat Chrysler Automobiles NV’s most iconic Jeep is stoking concern that the American SUV boom that’s fueled Detroit automakers’ profit is reaching its limits.
Dealers had 166 days’ supply of Jeep Wranglers at the beginning of this month, up from 116 days at the start of the year, and 120 days a year ago, according to data from Automotive News. Inventory of the rugged off-road sport utility vehicle was almost double the days’ supply of cars and light trucks industrywide.
The Wrangler glut is worrisome because Fiat Chrysler has been going almost all-in on trucks and SUVs, killing off many of its sedans to pad profit margins. Ford Motor Co. and General Motors Co. are following suit with similar moves. But with new models now filling every nook and cranny of the SUV market, industry sales are slowing and rising interest rates are making it tougher to afford new vehicles that have never been costlier.
