Money Machine

The Jeep's macho image

Brigitte Bardot adores hers. Pete Rose just bought ten of them, kept one for himself and gave nine as gifts. Object of their affections: the Jeep. World War II's workhorse has been transformed into a macho-chic machine that is leading the boom in the four-wheel-drive auto market.

The biggest fan is Gerald C. Meyers, 50, chairman of American Motors Corp., which bought manufacturing rights to the Jeep from Kaiser Industries in 1970. Though the company lost an estimated $65 million on its conventional cars for the fiscal year ended Sept. 30, AMC still posted a $36.7 million profit on sales of $2.6 billion. Most of that black ink comes from Jeeps.

This year AMC will sell some 150,000 of them to U.S. buyers, plus 25,000 abroad, giving its Jeep division 31% of the domestic sports-utility market--a term covering relatively small four-wheel-drive vehicles designed for off-road use. Running second is Chevy's Blazer with nearly 24% of the market, followed by Ford's newly revamped Bronco with 21%. Next year U.S. automen expect to produce 1 million four-wheel-drive vehicles. The field has become so attractive that even Mercedes plans to enter with its own four-wheeler by next summer.

Sales began to take off in the early 1970s along with the growth in popularity of outdoor recreation in the U.S. Because the sporty vehicles have high ground clearance, and power that is delivered to all four wheels instead of only two, they can go just about anywhere: along sandy beaches, through fields and over snow-covered roads. Industry experts puzzle over estimates that owners of the specialized machines spend less than 10% of their driving time off the road, but it seems clear that they are taken with an image. The bulky, rugged vehicles are usually decked with roll bars, high-intensity driving lights, giant tires, formidable grille guards and CB antennas. Four-wheel-drive cars first gained popularity in the West with the off-road set, but now they are driven by housewives and businessmen--and they are seen everywhere, often making the perilous journey to the supermarket.

This is a world away from the battle fields of World War II, when a generation of G.I.s depended on the frill-free G.P.s (for general purpose, and hence Jeep) that could growl through rivers of mud and over impossible obstacles. General George C. Marshall called the Jeep "America's greatest contribution to modern warfare," and the infantry man developed a love affair with his Jeep that was sketched by Cartoonist Bill Mauldin in his Willie and Joe series.

Somehow that personal relationship survives today. Jeep buyers seem undaunted by the $12,000 starting price of AMC's new top of the line Wagoneer Limited, which has almost every luxury-car feature and for which there is a long waiting list. Sales of the least expensive $5,000 CJ. (for civilian Jeep) -- a doughty, roofless runabout that is a direct descendant of the wartime model--have never been brisker. Rising gasoline prices have not deterred buyers, although industry sources say the Jeep fleet averages about 11 m.p.g. But federal authorities have directed that four-wheel-drive fleets must achieve an average 15 m.p.g. by 1981. That will be tough for AMC, which will have to spend a bundle on engineering.

Still, the tempo is upbeat and Jeep is looking for new conquests abroad. Says Meyers: "Venezuela is a good market and we're expanding there. Mexico is a small but pregnant market, and Africa is just sitting there--waiting for Jeeps. "

This file is automatically generated by a robot program, so viewer discretion is required.