Jeep Looks to Veer Out of Sales Ditch
The Jeep brand has gone up market in recent years with several pricey new vehicles. Its market share has gone in the other direction. The rugged American brand that spawned the modern SUV has posted lower sales for eight straight quarters.
Since mid-2018, Jeep has surrendered significant market share, falling from sixth to ninth in sales among top U.S. brands. The decline came as Jeep pushed into new vehicle categories, including a pickup-truck version of its popular Wrangler and the Grand Wagoneer, a large, luxury SUV priced above $90,000.
But Jeep has faced stiffer competition in its core markets, like compact and midsize SUVs, as automakers target those categories with new offerings. Amid the sales decline was a bright spot for Jeep’s parent company, Stellantis: The price customers paid for Jeeps has soared, helping the bottom line. Like most major automakers, Jeep gave priority to output of its priciest, most-profitable vehicles over the past three years, as supply-chain disruptions left dealership lots near empty, and consumers spent record sums for new wheels.
Still, last week, Stellantis Chief Executive Carlos Tavares expressed concern over Jeep’s market-share slide and vowed to reverse it. “We need to do a better job in Jeep, mostly Jeep in the U.S.," Tavares said during a conference call discussing the Netherlands-based automaker’s results for the first half of 2023. He said the brand slipped recently with ineffective marketing tactics and didn’t always have the right versions of popular models available at dealerships.
The company intends to gain back market share in the coming year, he added. “It is not rocket science," Tavares said. “We just have to do it properly." Jeep’s decline in sales highlights a
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