Jeep Compass: Tracking Positive New Direction

Jeep Compass: Tracking Positive New Direction

by Lauren Woods

The Chrysler Group's Jeep brand has one good reason to be thankful about the Compass - its new compact crossover. The Compass, which made its public debut at the 2006 North American International Auto Show (NAIAS) in January, is now tracking a positive new direction by stealing purchasers from rivals.

The Jeep Compass, according to the automaker, defies expectations and pulls more customers to the brand. The crossover is especially engineered to attract young drivers as well as enthusiasts of other automakers. It may not be featuring the BBK cold air intake and other traditional parts but the crossover boasts its sophisticated equipment and car accessories - more than enough to hold interest and make that interest linger.

Jim Swint, 56, a college professor and a technology consultant from Fremont, Ohio, had a few complaints about the 2004 Volkswagen Jetta which he owned. His wife did not feel safe in the sedan when the couple zipped along I-75 amid a multitude of big rig trucks. Also, there was not enough trunk space to house his golf clubs. And when the sedan needed repairs, Swint had to travel 45 miles to the nearest VW dealership. So he swapped the Jetta for a 2007 Jeep Compass.

Yes, somebody traded an import for an American-made model. And not just any American-made model, one that was widely panned when it debuted last year for not hewing close enough to its Jeep roots. But the Compass - a newbie in the brand lineup known for its rock-crawling capabilities - is defying expectations. The car-based model snubbed by hard-core Jeep fans for being too soft is drawing consumers from other brands at a faster pace than the Jeep brand overall, one of the best known marquees in the world.

According to data from the J.D. Power and Associates' Power Information Network, during the first three months of the year, more than 84 percent of Compass buyers traded in a vehicle from another brand as compared to 69.9 percent of those who bought non-Compass Jeeps. Jeep's new Crossover is drawing in Honda enthusiasts at nearly twice the rate of the Jeep brand. Additionally, the crossover is attracting a younger, more feminine crowd that might otherwise give Jeep a pass.

"This is the first crossover that Jeep has offered," said Tom Libby, the senior director of the Power Information Network. "This is what they hoped for and this is what they got - they got new customers."

By far, among Jeep models, the Compass has the youngest buyers on average, said Mark Heber, the senior manager of marketing for Jeep, a unit of DaimlerChrysler AG's Chrysler Group. Jeep's data reflected that the average Compass buyer is as young as 39 and skews more female than buyers of its brawnier cousin, the new Jeep Patriot.

J.D. Power sets the average age of Compass purchasers at 42, compared to Jeep's 43, with women accounting for faintly over half of Compass sales, up from 38.6 percent for Jeep overall. "Our information is proving that our decision to build both of the vehicles - the Compass and the Patriot, with the great fuel efficiency, the fun-to-drive capability and making them affordable - was the right decision," Heber said.

In October, Catherine Zamieski of Roseville, 39, exchanged a 2005 Chrysler Pacifica for a Compass. The Compass, which shares the same platform as the Dodge Caliber and the Patriot, looks small from the outside but is spacious enough to seat Zamieski's three children and her boyfriend. "And it's under $20,000," she said.

That is the reaction that Jeep hopes more consumers will have, analysts said. Sales of the Compass and the Dodge Caliber, which are built in Belvidere, Ill., are "better than I expected," because they both "look cool," said Karl Brauer, the editor-in-chief of Edmunds.com, a vehicle shopping Web site. "It's all image and looks."

"One of the reasons why it's doing well and is attracting new buyers is probably because it drives better and has better handling than the Wrangler or Liberty because it's a crossover," said Rebecca Lindland, an auto analyst with Global Insight Inc. "It has a friendly but aggressive stance to it."

Lindland said it is hard to pinpoint what is drawing buyers from other brands to the Compass. "But the brand itself has a certain appeal to it," she said. "When you say Jeep, you don't think of an older person. You think youthful and active lifestyle. Something like the Compass allows people to get into the brand without sacrificing ride and comfort."

Ron Kutz, the general manager at Dallas Dodge-Chrysler-Jeep dealership, said tha tthe vehicle does skew toward more women buyers, as Jeep intended. "It's an added value," he said, "but I don't see a lot of Hondas out here parked for trade-ins. I'll be the first to tell you that in the Sunbelt, it's hard to get anybody out of any import into a Compass."

Frank Ban, a civil litigation attorney in Houston, earlier purchased a Compass for his 24-year-old daughter. "We looked at the Corolla and the Civic," said Ban. "She heard through a friend that this came out and we looked at it and she fell in love. She liked the idea that it was a small SUV." During the test drive, Ban and his daughter agreed the Compass had a better ride. "We don't regret our purchase," he noted.

George Horta III, 32, a self-confessed meticulous auto purchaser, said that he was captivated by the new Compass. For six months, Horta perused Edmunds.com, visited a slew of dealerships and test-drove possible cars like the Honda CR-V and Subaru Forrester. "I even got the spreadsheets out," said the Mason, N.H., resident.

Horta, a defense contractor in Tewksbury, Mass. who commutes about 40 miles to his computer security job, was on the search for something with "gusto and more gas mileage." Horta said he wanted good handling and enough room to fit his six-foot, four-inch frame. Although he preferred the CR-V's interior, the Compass won him over because of its four-wheel drive capability, which easily handles the dirt path that leads to his home. "The only complaint I have is there are some blind spots," said Horta, who purchased his leather-seated Compass for $23,000. But for me, it met every single need."