Jeep, a revered brand in the automotive industry, is aiming to achieve 1 million vehicle sales domestically by 2027, despite facing five years of declining annual sales and a potential sixth year of decline in 2024. The CEO of Jeep, Antonio Filosa, remains optimistic about the brand’s future and is implementing a turnaround plan that includes lowering pricing, offering incentives, and increasing marketing efforts. Despite potential profit erosion, the brand’s average transaction prices have increased significantly. Jeep’s U.S. sales have shown signs of improvement, with a 28% increase from August 2023 and a 55% increase from July. However, the brand still has a long way to go to recover from a 34% drop in sales since 2018. The termination of entry-level models and a focus on profitability over market share under Stellantis’ CEO Carlos Tavares has impacted Jeep’s sales. Tavares’ cost-cutting efforts are part of the broader “Dare Forward 2030” plan to increase profits. Jeep is targeting selling 1.5 million SUVs globally by 2027, with a renewed focus on the U.S. market. New models and increased media spending are expected to drive future growth for Jeep, including the introduction of all-electric and plug-in hybrid models. The brand is also working to improve the quality and reliability of its vehicles, although it faces challenges such as an investigation into reports of underhood fires in newer Jeep models.
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