Dodge’s Hornet Faces Uphill Battle In A Competitive Market

Dodge, a brand synonymous with big horsepower muscle cars and SUVs, is facing a significant challenge with its compact Hornet crossover. Despite the company’s history of selling popular people movers like minivans and three-row crossovers, the Hornet is struggling to gain traction in the market. But why is this happening?

A Look Back: The Success of the Grand Caravan and Journey – 

In 2019, Dodge sold 422,888 vehicles in the U.S., a slight decline from the previous year. However, this number was bolstered significantly by the Grand Caravan minivan and the Journey crossover. Together, these models accounted for nearly half of Dodge’s sales that year—197,335 units to be exact. The Grand Caravan alone sold 122,648 units, while the Journey added another 74,687.

Despite being old models with mediocre quality compared to their competitors, the Grand Caravan and Journey were strong sellers due to their value. They were affordable and practical and offered ample space for families. For instance, the 2019 Grand Caravan SE had a starting MSRP of $28,535, equivalent to $35,012 today with inflation. Similarly, the 2019 Journey SE started at $24,740, about $30,356 in today’s dollars.

Enter the Hornet: A New Era for Dodge –

In an attempt to revive its lineup, Dodge introduced the Hornet, a compact crossover aimed at providing a modern people mover option. The Hornet offers impressive performance on paper. The GT model features a turbocharged 2.0-liter Hurricane4 inline-four engine, delivering 268 horsepower and 295 lb.-ft. of torque. The R/T model, a plug-in hybrid, combines a turbocharged 1.3-liter inline-four engine with an electric motor to produce 288 horsepower and 383 lb.-ft. of torque.

Despite these strong specs, the Hornet has struggled to attract buyers. One major reason is its price. The Hornet GT starts at $31,400, and the R/T model begins at $41,400. These prices are significantly higher than those of the Grand Caravan and Journey.

The Price Problem – 

The Hornet’s high starting price puts it in direct competition with more premium brands. For instance, the Audi Q5 Premium Quattro starts at $45,300, the BMW X1 xDrive28i at $40,500, and the Mercedes GLA 250 4MATIC at $45,000. Even within its segment, the Hornet GT faces stiff competition from cheaper alternatives. The Ford Escape ST-Line with standard AWD starts at $30,490, the Kia Seltos LX AWD at $24,490, the Chevrolet Equinox LS AWD at $29,595, and the Hyundai Tucson SE AWD at $29,100.

Moreover, Stellantis’ own Jeep® Compass Sport 4×4, which shares the same architecture and engines as the Hornet GT, starts at $25,900. The Mexican-built Compass is $5,500 cheaper than the Hornet GT, highlighting a significant price discrepancy within the company’s lineup.

The Need for Affordable People Movers – 

The discontinuation of the Grand Caravan and Journey in 2020 left a void in Dodge’s lineup. These affordable and practical models offered three rows of seating and ample storage space. Their success showed that Dodge’s strength lay in providing value-driven, family-friendly vehicles.

In 2023, Dodge’s U.S. sales dropped to 199,453 units, barely above the combined sales of the Grand Caravan and Journey in 2019. The Hornet only made up 9,314, or about 4.6% of those sales. 

A Path Forward –

To regain its footing, Dodge needs to address Hornet’s pricing. One potential solution is to produce the Hornet alongside the next-gen Compass at the Brampton Assembly Plant in Ontario, potentially lowering production costs. Dodge could better compete with rivals and attract more buyers by making the Hornet more affordable.

The Hornet is not a bad vehicle by any means. It offers solid performance and modern features. However, without a more competitive price point, it struggles to attract the value-conscious buyers who once flocked to the Grand Caravan and Journey.

Dodge’s future success hinges on its ability to reintroduce affordable, practical vehicles that appeal to families. The Hornet’s current struggles highlight a broader need for the brand to return to its roots as a provider of value-driven, family-friendly vehicles.