Under a new CEO, Jeep wants to address a five year decline by introducing new models, and combustion engines might be on the table
https://www.carscoops.com/author/sam-d-smith/
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by Sam D. Smith
April 16, 2024 at 15:35
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- U.S. Jeep sales have dropped from a peak of 973,227 in 2018 to 643,000 in 2023.
- New CEO unveils roadmap with one million domestic and two million global sales targets.
- As Jeep chases volume, it may consider ICE versions of the EV Wagoneer S and Recon.
Jeep’s new CEO is keen on reversing five years of decline in the U.S. market. Antonio Filosa, who was appointed late last year, reckons he’s the man for the job and sees the company going after a target of one million annual sales in America.
His plans involve improving Jeep’s lineup. Having identified some important SUV segments that have been neglected, the plan is to plug them with electric, and possibly ICE, alternatives. The company will also push to scale global volume to some two million units.
See: Electric Jeep Wagoneer S On Sale This Fall With 600 HP, 400-Mile Range
Jeep has fallen from its recent high in 2018, where the brand saw domestic sales hit as many as 973,227, selling more Cherokees that year than the entire brand managed to in 2009. But the last five years have not been kind. Last year, sales in the U.S. were just 643,000.
One reason for the decline was Jeep’s upmarket push. Models such as the Grand Wagoneer were prioritized, while their once bestseller, the Cherokee, was shown little love before being ultimately discontinued. The Renegade, an affordable subcompact SUV, met a similar fate.
Filosa recognizes that the brand’s troubles are of its own making. Speaking to Automotive News, he said, “When you lose your main midsize SUV offer, you are cut off from a segment that in the U.S. alone is worth more than 4 million units a year – bigger than a good year of the entire German market and the same size of the whole Latin American region.”
Jeep’s new strategy is to plug the holes in its lineup. The company will introduce two new electric vehicles, the Wagoneer S and Recon. These EVs are expected to be able to take on Tesla. The Wagoneer S will target the Model Y and is being touted as the quickest Jeep ever, with a 0–60 mph time of 3.5 seconds. The Recon, on the other hand, will be aimed at pushing those who are already fans and/or owners of the Wrangler into making that electrified jump.
Related: Stellantis Dealers Are Pleased With Jeep’s New Look For The EV Era
But the target of hitting one million U.S. sales is still a lofty one, especially without a replacement for the Cherokee lined up. One way to get there could be to offer ICE variants of the Wagoneer S and Recon. It’s an option made possible thanks to the new cars being based on the SLTA Large platform. Filosa says it’s a possibility.
If opportunities for combustion versions arise, “we need to grab them, or somebody else will,” he said. “Step by step, we could get [to one million U.S. sales]. The first is to launch the products into the midsize SUV segment, and we have the Wagoneer S and the Recon in the pipeline. And once we are strong in midsize SUVs, we have different product options.”
