Stellantis, the trans-Atlantic automaker, has set an ambitious target of increasing global sales of its Jeep vehicles by 50% over the next three years. Stellantis plans to enhance its profitability and market reach by leveraging the iconic American SUV brand.
Expanding Production and Sales
Stellantis announced plans to expand Jeep production and sales to approximately 1.5 million units by 2027. An increase in vehicle and powertrain offerings will drive this growth. “The Jeep brand can be a local hero anywhere,” said Stellantis CEO Carlos Tavares during the investor day at the company’s North American headquarters. He emphasized the plan to “reinforce Jeep’s manufacturing footprint.”
New Vehicle Nameplates and Powertrains
Jeep’s strategy includes expanding its vehicle nameplates from 10 to 13 by 2027. This will consist of 27 different powertrain options, ranging from traditional internal combustion engines to hybrid and fully electric models. “We want to grow,” stated Jeep CEO Antonio Filosa, outlining three strategic pillars: customer choice of powertrains, increasing market coverage, and globalization.
Focus on the North American Market
Much of Jeep’s growth is targeted at the North American market. The brand aims to exceed 1 million units in sales by 2027, up from around 700,000 last year. Jeep plans to introduce new models, including the Wagoneer S EV and a Jeep Wrangler-inspired off-road vehicle called the Recon. A new midsize SUV is also expected to replace the discontinued Cherokee SUV.
Affordable EVs on the Horizon
One of the most anticipated additions to Jeep’s lineup is a roughly $25,000 Jeep Renegade EV, expected by 2027. This vehicle aims to compete with less expensive EVs from Chinese automakers such as BYD and Nio. An affordable EV has become increasingly crucial for automakers like Stellantis and Tesla.
Recent Sales Performance
Despite challenges, Jeep’s sales showed promising growth in the first quarter of this year, totaling 31,750 units, a 47% increase from the same period last year. However, the brand sold nearly 643,000 vehicles in 2023, a 6% decline from 2022. Jeep accounted for 42% of Stellantis’ U.S. sales last year.
Stellantis’ ambitious plans to grow Jeep sales by 50% by 2027 underscore the brand’s significant role in the company’s global strategy. Jeep aims to solidify its position as a leader in the SUV market by expanding production, introducing new models, and focusing on affordable EVs. As Carlos Tavares noted, “The Jeep brand can be a local hero anywhere,” reflecting the brand’s potential for widespread appeal and success.
