Jeep eyes U.S. comeback following yearslong gross sales troubles

AUBURN HILLS, Mich. — Jeep is betting Individuals nonetheless love a superb comeback story.

It is a mantra that is reverberating by way of the quintessential SUV model — from its CEO to a advertising and marketing marketing campaign with LL Cool J — following yearslong gross sales and market share declines which have taken a toll on Jeep and its mother or father firm, Stellantis.

“This is not only a comeback. That is the Jeep model reclaiming a phase we invented and outlined,” Jeep CEO Bob Broderdorf mentioned throughout a latest media occasion.

Jeep has been in a rut this decade, regardless of the model’s well-known off-road capabilities which have carried it for a lot of the previous century. It has skilled six consecutive years of U.S. gross sales declines amid a management carousel, dearth of recent merchandise and a failed premium pricing technique to spice up income.

However now, the coveted SUV model has realigned pricing throughout its lineup, scored its finest quarterly gross sales acquire in additional than two years and is within the midst of its largest mainstream product blitz this decade.

“We’ll develop, develop and develop,” Broderdorf advised CNBC sitting in a redesigned 2026 Jeep Grand Wagoneer on the firm’s design dome in suburban Detroit. “That is the mission. And do it in a wholesome approach.”

The redesigned Grand Wagoneer is symbolic of the model’s troubles and comeback try. It was Jeep’s foray into luxurious — topping $111,000 totally loaded in 2021 — that was comparatively overpriced and overcomplicated in contrast with its friends and skilled a number of manufacturing and high quality points.

The redesigned mannequin lineup is cheaper, easier and higher positioned in opposition to different massive American SUVs somewhat than overseas opponents comparable to Land Rover. Its manufacturing points even have eased.

“We confused our consumers. We confused our sellers,” Broderdorf mentioned on the media occasion. “I am right here to let you know we bought the message. We’re fixing it.”

However some issues take longer than others to repair within the automotive world. The model’s gross sales stay considerably decrease than expectations, and Jeep’s general high quality issues stay a piece in progress after the realignment of its automobiles and pricing technique.

“This is among the areas that should enhance. We’ve been enhancing, however proof is within the pudding,” Broderdorf advised CNBC.

Amongst 32 main automotive manufacturers, Jeep ranked final in Client Studies’ annual grading final yr that features a mixture of highway take a look at scores, security scores, and predicted reliability and proprietor satisfaction information.

Most lately, the model introduced a recall of greater than 320,000 plug-in hybrid Wrangler and Jeep Grand Cherokee fashions as a consequence of a danger of fireplace. The corporate filed a recall late final month with the Nationwide Freeway Site visitors Security Administration, however no treatment has been launched.

The corporate advised CNBC an answer is anticipated in December involving a software program replace to the high-voltage battery pack management module of the automobiles to enhance diagnostic functionality for early detection of inner battery injury.

The recall comes at an inopportune time, as Jeep launches a Wrangler-inspired, all-electric SUV known as the Recon. The automobile will probably be revealed this week forward of the Los Angeles Auto Present after first debuting as a idea automobile in 2021.

The Recon was initially hailed as key to the Jeep model’s future, with executives saying it could assist the corporate grow to be a pacesetter in all-electric automobile gross sales, together with a previous plan for the model to attain 50% EV gross sales within the U.S. by 2030.

However expectations have diminished as Stellantis appointed a brand new CEO and demand for EVs slowed amid regulatory modifications, together with the tip of as much as $7,500 in federal incentives in September to buy a plug-in electrical automobile.

Broderdorf mentioned the tip of federal incentives is anticipated to impression gross sales throughout the business, together with with the Recon, however the brand new SUV features as an EV “bookend” alongside the sportier Wagoneer S for the Jeep model’s electrical portfolio.

“I am not going to only chase quantity simply to chase quantity,” he mentioned throughout a latest media name. “I wish to promote vehicles in the proper approach. All people who desires a [battery-electric vehicle], Recon, I wish to ensure that we’re there for them. After that, it does not actually matter to me.”

The Recon is being produced at Stellantis’ Toluca Meeting Plant in Mexico alongside the Wagoneer S, Jeep Compass and the brand new Jeep Cherokee, which is being provided solely as a hybrid automobile.

Broderdorf, who began main the model in February, mentioned the plant can simply modify to supply the higher-volume Compass and Cherokee relying on demand for EVs. Each gas-powered automobiles are also anticipated to be manufactured within the U.S. within the coming years for extra flexibility.

A number of automakers reported main declines of their EV gross sales in October following the tip of the federal incentives in addition to the Trump administration eliminating gas financial system and emissions fines, which EVs helped offset.

Jeep has launched few particulars in regards to the Recon aside from will probably be a “brother” to the Wrangler — Jeep’s iconic, off-road and open-air SUV. Jeep beforehand touted a smaller idea model of the automobile reaching 0-60 mph in roughly two seconds.

The Recon is the final of 4 new automobiles Jeep is revealing in 4 months. It began with the essential new Cherokee SUV, adopted by up to date variations of the Jeep Grand Cherokee and Grand Wagoneer.

Earlier than the Jeep Wagoneer S final yr and upcoming Recon, Jeep was specializing in electrified gross sales of plug-in hybrid electrical variations of its Wrangler and Grand Cherokee somewhat than all-electric automobiles.

A part of Jeep’s “comeback” has included an aggressive push in new advertising and marketing and promoting campaigns which have included actor and musician LL Cool J and a raunchy advert marketing campaign that includes comic Iliza Shlesinger for the Jeep Grand Wagoneer.

The campaigns, led since June by Jeep’s new vice chairman of promoting and communications, Wendy Orthman, are per Broderdorf’s comeback mantra, together with that includes LL Cool J’s “Mama Stated Knock You Out.”

“Do not name it a comeback. I been right here for years,” the long-lasting rapper and actor says within the track featured within the advert marketing campaign, calling Jeep “the unique influencer.”

The advertising and marketing and promoting efforts assist, however crucial factor for the corporate stays new merchandise, particularly the Jeep Cherokee that competes within the extremely standard compact/midsize SUV markets, business watchers mentioned.

“They’re nonetheless making an attempt to sort things, getting the pricing proper, getting the product proper,” mentioned Stephanie Brinley, affiliate director in AutoIntelligence at S&P International Mobility. “However there’s numerous potential, particularly with the Cherokee coming again. There’s loads nonetheless approaching within the pipeline, and I feel it’s going to place them in a superb area.”

The corporate axed a previous model of the Cherokee in addition to a smaller SUV known as the Renegade amid revenue pressures below former CEO Carlos Tavares in 2023.

Jeep’s gross sales by way of the third quarter of this yr had been up lower than 0.5% in contrast with a yr earlier. Jeep’s U.S. market share has fallen from 5.4% in 2019 to three.7% since 2024, based on Cox Automotive.

Jeep’s been coping with a spiraling gross sales decline that began after the model reached an all-time excessive of greater than 973,000 SUVs offered in 2018. The model’s gross sales have fallen 40% since then to lower than 590,000 models final yr within the U.S.

As gross sales plummeted, Jeep’s common transaction costs, or ATPs, had been round $54,000 throughout 2023-24 — nicely above the business common of roughly $48,500 or much less throughout that point interval, based on Cox Automotive.

Jeep’s ATPs by way of the third quarter of this yr had been lower than $49,800, based on Cox. That is still a premium over the common business of $48,588 however is way decrease than prior years.

One factor that hasn’t been declining this yr for Jeep is its stock ranges, based on Cox Automotive. Jeep had the best days’ provide of any main model aside from Ford’s Lincoln at 146 days in October. The business common for days’ provide, which calculates the quantity of days of stock dealerships have based mostly on latest gross sales, was 88 days, Cox experiences.

” mainstream manufacturers, latest stock traits reveal that some producers could also be edging towards overstocked territory as client demand shifts,” Erin Keating, Cox Automotive government analyst, mentioned in a weblog publish Thursday, citing Jeep particularly.

Jeep’s comeback plan began with Stellantis CEO Antonio Filosa, who beforehand led the model. It has accelerated, with the Filosa’s help, below Broderdorf.

“It isn’t like ’26 goes to be a 1-million-unit yr as a result of they’re fixing issues. When you type of get off monitor, getting again on monitor can take a bit of little bit of time as nicely, however it begins with product,” Brinley mentioned. “And that is what they’ve coming in 2026.”