DETROIT — Jeep is cutting prices on some of its key models and taking new approaches to marketing, branding and dealer relations in an effort to turn around flagging U.S. sales, CEO Antonio Filosa said.
"The brand is in transition," Filosa told journalists today at a roundtable at Stellantis' North American headquarters in suburban Detroit. "We need to do something about market penetration and market share because it's not where this brand deserves to be."
His comments come after U.S. Jeep sales fell 6.1 percent in 2023 from a year earlier to about 642,000 vehicles, the fifth consecutive year of U.S. sales declines after reaching almost 1 million in 2018. The sales challenge coincides with Jeep preparing to launch its first two fully electric models for the U.S. market, the midsize Wagoneer S and the Wrangler-inspired Recon in the back half of the year, even as U.S. EV sales growth slows.
The core of Filosa's strategy will be offering customers the "freedom to choose" vehicles with different propulsion systems, while keeping prices in check for U.S. consumers who have been impacted by inflation and higher prices for new vehicles.
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"We're rolling back prices, and we're adding back value to 90 percent of our sales volume."
He said Jeep is offering an extra $3,000 in content on the Wrangler and Gladiator. Meanwhile, Jeep has cut the sticker price on the Gladiator by about $1,700 and by up to $4,000 on the Grand Cherokee, he said. It also cut the sticker price on the Compass by about $2,500, bringing pricing to less than $26,000, which Filosa said will help the compact crossover to better compete in the market. The current Compass base price is $28,400. All pricing is before destination charges.
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BEV launches Production of the Wagoneer S, the first vehicle to ride on Stellantis' STLA-Large platform, is set to begin in the second quarter, with sales starting in the third quarter. The Wagoneer S will be followed by the Recon, which will hit the market toward the end of the year.
Filosa said the real test for those vehicles' popularity will come in 2025, but Jeep expects to sell around 10,000 battery electric vehicles by the end of 2024. It also expects to sell around 175,000 plug-in hybrid EVs in the year.
The BEV launches are coming as the market for EVs has cooled off considerably, forcing competitors including General Motors and Ford Motor Co. to delay EV launches, cut production targets and rethink their electrification strategies.
Stellantis is coming to electrification later than many of its competitors, but Filosa said Jeep's top priority is to enter the EV market "better" than its competitors, not necessarily sooner or later.
"Better, to us, means more freedom of choice and means to provide a lineup that has different propulsion opportunities for our customers," he said. "What we have now is a full range of offerings that, probably, our competitors will be later to get to."
Asked whether Jeep is concerned with cannibalizing sales by launching two electric offerings during similar time frames, Filosa said the Wagoneer S and Recon cater to different markets.
"We decided in the midsize SUV segment to launch the Jeep Wagoneer S and to launch the Jeep Recon. Will they cannibalize each other? I believe not," he said. "Look at the cars. One is the Wrangler's soul. One is the Grand Cherokee's soul. Those are the two souls of Jeep."
Dealer relations Filosa and other brand chiefs have been tasked by Stellantis CEO Carlos Tavares with improving dealer relations as part of the automaker's larger U.S. strategy.
Speaking separately with reporters this week, Tavares said, "The quality of the relationship with our dealers could be better, and we are working on that."
Filosa said he was in Washington on Thursday to meet with a "very important dealer" to the brand. Streamlining dealer programs and having stronger communications with retailers will be top priorities.
"We are working with the dealers and listening to them on a daily basis," he said.
Filosa said Jeep's strategy around the Wagoneer brand is being updated in part based on dealer feedback. Starting with the Wagoneer S, the brand is "converging Wagoneer back into Jeep" — meaning Jeep branding will be more visible on the vehicles, as well as in marketing and advertising.
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EMAIL ADDRESS The company's previous branding strategy was "a bit confused," Filosa said.
Other priorities under his turnaround plan include installing new leadership, as seen with the recent appointment of William Peffer as head of Jeep in North America, and evolving its marketing strategy to better cater to both brand loyalists and potential new buyers.
Il nuovo ceo di Jeep vuole aumentare le quote di mercato riducendo i prezzi. Tavares ha detto apertamente che non era contento dei risultati di Jeep nonostante i massicci investimenti fatti negli ultimi anni di FCA. Da una parte verranno lanciate 2 BEV d’altra parte si vogliono riconquistare i clienti classici che sono stati perduti nel tentativo di diventare più premium.
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