Jeep has slashed the prices of several of its models in the United States in response to a fifth consecutive year of declining sales. Moreover, the automaker has announced it will no longer attempt to position Wagoneer and Grand Wagoneer as models of its luxury sub-brand but will instead incorporate them into the regular Jeep family.
Jeep reduces prices after a 6.1% sales decline in the U.S.
Over the past year, Jeep sold approximately 642,000 vehicles in the United States, marking a 6.1% decrease from the previous year. Jeep’s CEO, Antonio Filosa, recently told the media that the brand needs to increase its market share to accurately reflect its value.
The price adjustments begin with the Gladiator, receiving a $1,700 cut, and extend to the Grand Cherokee, now reduced by $4,000. Furthermore, Jeep has lowered the Compass’ price by about $2,500 and will offer $3,000 in extra content on the Wrangler and Gladiator. The automaker will also reduce factory costs by renegotiating contracts with suppliers.
Filosa stated, “We recognize that we need to grow in market share in the United States, and inflation has hit families here hard, so we had to act.” He added that the price reduction would affect 90% of Jeep’s sales volume, calling it “a good first step.” Guidehouse Inc. analyst Sam Abuelsamid commented, “They recognize they’ve raised prices too much and now need to lower them.”
Filosa, who took over as Jeep’s CEO last November, is also making changes to Wagoneer and Grand Wagoneer. These two models are among the brand’s best sellers. Filosa announced that Wagoneer would be incorporated into the Jeep family, with the models featuring a more prominent Jeep branding and benefiting from new marketing and advertising campaigns. This repositioning aims to create greater clarity around the brand, simplify the offering for consumers, and enhance the dealership experience.