Jeep Aims for 1 Million US Sales by 2027

Stellantis' Jeep brand, renowned for its off-road prowess, faces a steep climb to reach 1 million vehicle sales domestically by 2027. Despite five consecutive years of declining sales, CEO Antonio Filosa believes a turnaround is in sight.

• Jeep has implemented a turnaround plan that includes lowering prices, offering incentives, and increasing marketing spending.
• The brand is also introducing new electrified models and a replacement for the Cherokee SUV.

Jeep's Sales Decline

Jeep has experienced a significant drop in US sales, plummeting from over 973,000 units in 2018 to under 643,000 in 2023. This decline can be attributed to several factors:

• The discontinuation of the Renegade and Cherokee compact SUVs, two mainstream models that previously accounted for a significant portion of sales.
• Stellantis' focus on profitability over market share under CEO Carlos Tavares.
• Increased competition in the SUV segment.

Jeep's Turnaround Plan

To achieve its ambitious sales target, Jeep is executing a multi-pronged approach that includes:

• Pricing Adjustments: Lowering prices on high-volume models like the Compass and Grand Cherokee.
• Incentives and Special Offers: Implementing incentives and 0% financing options.
• Marketing and Advertising: Increasing spending on marketing and advertising to raise brand awareness and drive sales.
• New Model Introductions: Launching new electric models, including the Wagoneer S and a Jeep Wrangler-inspired Recon SUV.
• Dealer Roadshow: Addressing dealer concerns and working collaboratively on turnaround initiatives.

Jeep's Electrification Strategy

Jeep is prioritizing electrification as a key driver for future growth. The brand is introducing several electric vehicles, including:

• Wagoneer S: All-electric SUV launching later this year.
• Jeep Wrangler-inspired Recon: Electric SUV launching in 2025.
• Wagoneer and Grand Wagoneer: Extended-range, plug-in hybrid versions.

Stellantis' Overall Strategy

Under CEO Tavares' leadership, Stellantis has implemented a cost-cutting strategy focused on boosting profits and revenue. The company aims to double revenue to 300 billion euros by 2030.

• Tavares has authorized some flexibility in pricing, incentives, and financial targets to support dealer performance and enhance sales.

Jeep's Focus on Quality and Reliability

While Jeep is pursuing aggressive sales targets, it is also prioritizing quality and reliability. The brand is taking steps to improve its vehicles' performance, including delaying launches of the Wagoneer S and Recon to ensure a high standard of quality.

• Jeep is cooperating with US auto safety regulators on an investigation into underhood fires in Wrangler and Gladiator SUVs.
• The company is closely monitoring the quality of production at its Toluca Assembly Plant in Mexico, where the new electric SUVs will be manufactured.

Jeep's Future Outlook

Jeep is confident that its turnaround plan, combined with its new electric vehicle offerings, will drive growth and restore its position as a leading SUV brand. The brand is optimistic about its future prospects and expects to see a significant improvement in sales performance in the coming years.

• Jeep believes it will be able to recapture its market share and reach its sales target by 2027.