Jeep CEO implements strategic plan to reverse sales declines.
Jeep Wagoneer S Trailhawk EV concept
Stellantis’ Jeep brand is setting its sights on achieving 1 million vehicle sales domestically by 2027, despite facing challenges in recent years. The brand, known for its rugged vehicles, has experienced a decline in U.S. sales over the past five years, with 2024 on track to continue this trend. However, Jeep CEO Antonio Filosa remains optimistic, believing that the brand’s turnaround plan is beginning to show positive results, despite a 9% sales decline in the U.S. during the first half of the year.
The turnaround plan includes strategies such as lowering pricing across its lineup, offering special incentives, and increasing marketing efforts. These actions have led to an increase in average transaction prices, with Jeep’s average transaction price surpassing the industry average since 2021.
Filosa’s efforts come in the midst of a scathing letter from the chairman of the Stellantis National Dealer Council, criticizing the company’s sales losses and business decisions. Despite these challenges, Stellantis sold over 1.5 million vehicles in the U.S. last year, slightly down from the previous year amid an industry-wide sales increase.
Jeep recently saw a 28% increase in U.S. sales from the previous month, along with a reduction in vehicle inventory. However, the brand still has a way to go to achieve a significant sales recovery, as U.S. sales have declined by 34% from their peak in 2018.
The brand is aiming to regain market share by introducing new models and focusing on profitability. Under CEO Carlos Tavares, Stellantis is prioritizing profits over market share, with plans to double revenue by 2030. Jeep aims to sell 1.5 million SUVs globally by 2027, including 1 million in the U.S.
To support its sales goals, Jeep is launching new vehicles such as the all-electric Wagoneer S and Wrangler-inspired “Recon” SUV. The brand is also ramping up marketing efforts and focusing on quality and reliability improvements.
Despite facing quality concerns, including an investigation into underhood fires in certain models, Jeep remains committed to delivering high-quality vehicles. With new products on the horizon and a focus on growth, the brand is optimistic about the future.
SOURCE
Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.