November 5, 2024
Alain McKenna
Jeep announces a significant price drop of US$7,000 for its 2025 Wagoneer and Grand Wagoneer in the United States. The move is part of a broader strategy to boost sales and turn around a struggling brand.
A plan to stem the fall in sales
Since 2018, Jeep has suffered a 34% decline in sales in the US market, going from 973,000 annual units in 2018 to 643,000 in 2023. This decline comes despite a recovery in sales in the industry last year. Jeep, on the other hand, saw its own sales decline by 6% compared to 2022.
A necessary repositioning to attract buyers
Average prices for Jeep vehicles have increased significantly, reaching US$54,811, or US$6,500 above the market average at the start of 2024. This price repositioning has created a gap between Jeep and its traditional values as an accessible brand, especially due to the disappearance of entry-level models like the Renegade and Cherokee, once very popular and with up to 300,000 annual sales.
The removal of these models reduced Jeep's market coverage from 80% to just 45%, according to Jeep CEO Antonio Filosa.
New initiatives for renewal by the end of 2024
With new hybrid and electric models to come, Jeep intends to regain its historic market coverage. At the same time, measures such as price reductions, 0% financing offers and increased marketing investments have already borne fruit.
In August 2024, sales increased by 28% compared to August 2023, and by 55% compared to July. This relaunch allowed Jeep to reduce its inventory by approximately 25,000 vehicles.
An ambitious goal: 1.5 million sales by 2027
Stellantis, Jeep's parent company, is targeting a global sales volume of 1.5 million for the brand by 2027, a tall order to reverse the current trend. This volume corresponds to the combined sales of Stellantis' five American brands in 2023. To achieve this, Jeep will have to focus on its new models and a more competitive pricing strategy.
About the author
Alain McKenna has been covering electronics, technology, automotive, media and finance for 20 years. He has written for the largest Quebec dailies, is the author of four books and is a regular speaker on Quebec television and radio on various current topics.
