Jeep, the flagship brand among Stellantis NV’s portfolio of 14 vehicle brands, is taking steps to enhance its competitiveness in the US market. This year, it plans to introduce lower prices, expanded model options, and new features across its lineup in response to challenges from both economic pressures on consumers and intensified competition.
The company is implementing significant price reductions, including up to $4,000 off the sticker price of its popular Grand Cherokee SUV and an average reduction of $1,700 for its Jeep truck, the Gladiator. Additionally, the starting price for the 2024 Jeep Compass, the most affordable model in its range, has been lowered to below $26,000, with an average decrease of $2,500, as noted by Antonio Filosa, who assumed the role of global head of the Jeep brand in November.
Furthermore, the 2024 Jeep Wrangler will feature new content valued at $3,000, such as a standard 12.3-inch touch screen across all trims.
Addressing concerns over inflation’s impact on American families, Filosa emphasized the necessity for action, stating, “Inflation was such a big negative hit for families and people here in the US, we needed to do something.”
This year marks a pivotal moment for the esteemed SUV brand, which faced challenges in its upward shift in the market due to rising interest rates redirecting consumers towards more affordable vehicle options. To address this, Jeep has adjusted production to manage excess inventory levels.
The automaker also intends to introduce new offerings, including Jeep’s inaugural fully electric options for US customers: the Jeep Recon and the Jeep Wagoneer S.
Scheduled for release in the latter half of 2024, the Jeep Wagoneer S will be a midsize electric SUV boasting 600 horsepower, targeting the premium market segment. On the other hand, the Jeep Recon, an all-electric rendition of the rugged Wrangler, is set to launch by the end of the year. Filosa expressed confidence in selling 10,000 fully electric Jeeps in 2024.
Filosa emphasized the significance of offering various powertrain options, highlighting it as a competitive advantage in a market experiencing a slowdown in electric vehicle demand. Jeep, historically trailing behind competitors in electrification, aims to cater to consumers not yet ready for pure battery electric vehicles by leveraging its plug-in hybrid 4xe technology.
Moreover, the Wagoneer nameplate, previously associated with a luxury sub-brand introduced in 2021, will now be integrated into the Jeep lineup.
Lost Share
In 2023, Jeep experienced a continuous increase in average transaction prices, yet its market share declined. According to Cox Automotive, Jeep’s market share dropped to 3.92% in the fourth quarter of 2023, down from 3.97% a year prior and 5.17% in 2019.
Despite this decline, Jeep managed to sell 152,818 vehicles in the fourth quarter of 2023, marking a 31% decrease from the same period in 2019. However, there was a 7% increase compared to the fourth quarter of 2022, indicating a potential turnaround in deliveries. Notably, Stellantis was the only major automaker to register lower sales in 2023 compared to 2022, largely due to chip shortages that impacted dealer inventories.
CEO Carlos Tavares expressed dissatisfaction with the company’s North American performance in the previous year. He acknowledged shortcomings in various areas including marketing, cash flow management, manufacturing, and dealer coordination during a conference call with reporters. However, he expressed optimism for improvement in 2024, stating, “I’m quite confident 2024 will be better than 2023.”
