Jeepers Cheapers! Jeep Reducing Prices and Enhancing Offerings

Taking on inflation forms a key part of a fresh approach to expand the struggling brand’s reach and impact.

Jeepers Cheapers! Jeep Slashing Prices, Adding Content

Tackling inflation is part of a new strategy to grow the brand that is not meeting its potential.

To address inflation and declining market share in the U.S., the global Jeep brand’s new CEO, Antonio Filosa, announced plans to introduce more features and reduce prices on certain vehicles. The brand’s SUVs have become relatively costly compared to competitors, and its lineup consisting of trucks and SUVs has become oversaturated.

Jeep Brand Reset

Before the recent discontinuation, the smallest Jeep model, the subcompact Renegade, had a starting price of nearly $30,000, higher than its competitors of similar size. Surprisingly, the compact Compass, which is larger than the Renegade, was priced lower, while the slightly bigger Cherokee, also leaving the lineup, was nearly $40,000, significantly more expensive than entry-level Honda CR-Vs and Toyota RAV4s. After eliminating the Renegade and Cherokee models, here are Jeep’s plans to address high prices and lineup congestion:

These price adjustments are part of a series of brand initiatives aimed at realizing its full potential under new leadership, including Filosa and Bill Peffer, who now leads Jeep in North America.

Greater Powertrain Diversity Initiatives

One initiative focuses on increasing the diversity of powertrains at Stellantis. The company has already revealed its intentions to introduce more plug-in hybrids, such as the full-size Grand Wagoneer, scheduled to receive the 4xe treatment in 2024. Additionally, there are expectations for the range-extender EV configuration found in the 2025 Ram 1500 Ramcharger to transition to the Wagoneer and Grand Wagoneer models. Although Filosa did not provide details on future product plans, he expressed interest in this technology for the Jeep brand. He emphasized that no final decisions have been reached, and any implementation would require 18 to 24 months.

Electric Range Extender Technology

The concept of utilizing a gas engine as a range extender to power a generator for electric propulsion varies in effectiveness depending on the vehicle’s size. Larger vehicles tend to benefit more from this technology compared to smaller ones. For instance, the Ramcharger pickup can cover around 140 to 150 miles solely on electric power, suitable for everyday usage. On longer journeys or when towing or hauling, activities that noticeably reduce the range of electric trucks, the gas-fed generator can kick in. With this feature, the Ramcharger boasts an estimated total range of nearly 700 miles.

Brand Revitalization Efforts

As part of its revitalization strategy, Jeep is planning to ramp up its advertising and media expenditures, simplify dealer programs, and introduce a brand cost and quality team. This team will collaborate closely with production facilities, address customer feedback, and enhance overall brand perception.

Growth Strategy in North America

Filosa, who has been at the helm for 90 days, highlights the brand’s transitional phase and the imperative need for expansion. Identifying North America as the region with the most growth prospects, the brand aims to capitalize on this market to boost its presence and market share.