Jeep is an iconic American auto brand. What started as a rugged World War II transporter quickly became the vehicle of choice for many suburbanites. Jeep has been able to keep up with some of its top rivals for years, but that’s beginning to change with the switch from gasoline to electric power.
Jeep hasn’t been keeping up with the changing industry. However, now under the umbrella of Stellantis, the Netherlands-based auto conglomerate, the brand is hoping for a rebound as sales stagnated in September.
Jeep dealerships across the United States recently sent a letter to Stellantis CEO Carlos Tavares after jobs were cut and American factories reduced production capacity. The letter accuses Tavares of “short-term decision making” that hurt the bottom line for Jeep, Dodge, Chrysler, and Ram. Jeep also cut production on popular models like the Cherokee, its midsize SUV.
The Wagoneer S, one of the long-anticipated electric crossovers, is coming out this fall, and Stellantis and Jeep executives hope this will help turn the brand around.
The Wagoneer S is the first all-electric model (starting at $70,795). The Recon, another electric Jeep model, is expected to arrive in 2025, adding to its growing zero-emission lineup. The Grand Cherokee and Wrangler plug-in hybrid electric vehicle (PHEV) models also add to their portfolio.
Photo Courtesy Stellantis
Jeep wants to hit 1 million vehicles sold in the U.S. by 2027, and CEO Antonio Filosa has a new plan to do so.
CNBC reported that prices will be lowered on its lineup and high-volume models like the Compass and Grand Cherokee with incentives like 0% financing and more marketing.
A graph from Cox Automotive shows that Jeep prices have been above the industry average since 2021, and inflation hasn’t made it easier to justify spending more on a car when cheaper (and more reliable) models are available. Jeep only moved 643,000 units in 2023, and the decision to end production of the Cherokee and entry-level Renegade compounded the brand’s stagnation.
It wasn’t just Jeep that suffered a decline in sales. Stellantis was down 1% across the U.S., selling 1.5 million vehicles, but that was a sizable dip after several productive years.
“For Jeep to lose Jeep Cherokee … and Jeep Renegade has been an important hit to us,” Filosa said to CNBC. “Our market coverage declined from an average of 80% to 45%.”
Photo Courtesy Stellantis
Lowering prices and offering more incentives could get the ball rolling again for Jeep, but it’s up against an increasingly more aggressive auto market. EVs are becoming more popular and, in some places, a necessity. Jeep’s struggles aren’t helped by competing with Ford, General Motors, Rivian, and Tesla — brands who have sufficiently carved out a niche in the growing zero-emission auto market.
However, Jeep is still a classic brand. The Wrangler has transformed from an offroading SUV to a civilian vehicle.
Though Stellantis said it would open and revitalize more American car factories in the Midwest, it remains to be seen how this will get more cars off the showroom floor.
The hope is that the Wagoneer S and Recon S can compete with other more popular EVs like the Tesla Model Y or Rivian R1S. Stellantis is part of the IONNA charging venture with Mercedes, GM, BMW, and more major brands. A centralized charging network could sway consumers to consider Jeep for their next car on top of lower overhead prices and American clean vehicle tax credits.
