By Adriano Resende | 5/11/23 | Translated by Jorge Meditsch
For a long time, the Jeep Renegade disputed the first positions of the acclaimed compact SUV segment. But this has changed for some months. And much. The repositioning of the product range with the arrival of the 1.3 turbo engine and the introduction of a plethora of technologies already present in the Sport version indicate Jeep is not kidding.
The features include six airbags, automatic emergency braking, 7″ media central with wireless Android Auto and Apple CarPlay, stability and traction controls, lane departure alert, cruise control, electronic brake and others: more than enough comfort, safety and technology (ADAS). But both internal (Fiat Pulse/Fastback) and external competition has been working hard to take a bite of its market share.
I saw the first Renegade mockup in Detroit in 2014 and was at its global avant première in Geneva, Switzerland. It is really a unique and special product!
But this is no more a fight restricted to appeal but over rationality in an essentially selling market and with a very fierce commercial dispute. From this viewpoint, I see a commercial strategy that, in my opinion, does not make sense.
In most forums I participate in, a theme always present is the TCO, Total Cost of Ownership, which is part of the discussion about the real ownership value under the customer’s optics. This index includes items such as insurance, replacement parts prices, handwork, fuel consumption, tires and many others.
Jeep has just launched a new Renegade entry version. It keeps the features I mentioned, which shows the intention of respecting the offer of comfort, safety and technology to its customers. Was some content taken off? Yes. “Little” things, such as the roof rack, front and rear mats, trunk cargo cover and the Healthy Cabin filter.
But it was not only this. Currently, the Renegade offers a 3-year warranty. And this directly influences TCO. In the new entry version, the warranty covers only one year.
Believe: it is a simple maneuver. The car suffered no change to justify a lower warranty. The manufacturer has just taken off the car value the warranty cost it could incur during the next two years. You never get lunch for free.
To understand and end: Imagine your neighbor has a 2023 Renegade Sport, and you own a “basic” 2023. Both were purchased at the same time. Compared to his car, yours lack only the items I mentioned before. But in one year, the difference will be brutal. At the scheduled maintenance, his Renegade will still be in the warranty period and yours, no. And so goes the TCO.
* Adriano Resende is Brand to Market consultant company owner specializing in the automotive sector.
