Jeep, a brand renowned for its rugged SUVs, faces a significant challenge: reversing five years of declining US sales, CNBC reports.
Jeep CEO Antonio Filosa is optimistic that a new turnaround plan will steer the company toward its ambitious goal of selling 1 million vehicles annually in the US by 2027. Despite a 9% sales drop in the first half of 2024, Filosa believes the brand is poised for recovery.
The turnaround strategy includes lowering vehicle prices, offering incentives like 0% financing, and boosting marketing efforts. These measures, though potentially impacting profits, have already led to some positive momentum, with Jeep’s US sales up by 28% in August and 55% in July. However, overall sales have fallen sharply from their peak of 973,000 units in 2018 to fewer than 643,000 units in 2023.
The sales decline has been exacerbated by the discontinuation of key models like the Jeep Renegade and Cherokee, which had once been high-volume sellers. Filosa acknowledged the impact, stating that Jeep’s market share had dropped significantly but expects a recovery with the introduction of new electrified models, including a replacement for the Cherokee, by the end of 2024.
Filosa is also working closely with dealers to address concerns, part of a larger effort under Stellantis CEO Carlos Tavares’ “Dare Forward 2030” plan, which aims to double the company’s revenue by 2030. Jeep’s upcoming all-electric Wagoneer S and a Wrangler-inspired “Recon” SUV are central to its plans to regain market share.
In addition to new models, Jeep is focused on improving vehicle quality. The brand has delayed the launch of its Wagoneer S and Recon SUVs to ensure better reliability, following concerns over recent safety investigations.
