Jeep, a popular brand in the automotive industry, is aiming to achieve 1 million vehicle sales domestically by 2027. The brand has faced five years of declining annual sales, with the potential for a sixth year of decline in 2024. However, Jeep CEO Antonio Filosa is confident that the brand will be able to reach its sales target. To turn things around, Jeep has implemented a turnaround plan that includes lowering prices, offering special incentives, and increasing marketing efforts. Despite potential profit losses from these actions, Jeep’s average transaction prices have increased, indicating positive growth. Filosa stated that the plan is already showing results, with a recent increase in U.S. sales.
Jeep’s U.S. sales have declined significantly in recent years, partly due to the discontinuation of popular models like the Renegade and Cherokee compact SUVs. The company hopes to recover market share and increase sales by introducing new models, including an all-electric SUV and plug-in versions of existing models. Filosa is focused on improving the quality and reliability of Jeep vehicles, as the brand has historically ranked below average in third-party ratings. However, Jeep is facing challenges in this area, as it is currently cooperating with auto safety regulators on an investigation into reports of underhood fires in newer Jeep models.
To achieve its sales target, Jeep is focusing on profitability and doubling revenue by 2030, in line with Stellantis CEO Carlos Tavares’ strategy to prioritize profits over market share. Jeep is planning to launch several new vehicles and increase media spending to drive sales growth. Despite challenges in quality control, Jeep is optimistic about the future and is working on improving its lineup to meet consumer demand and achieve its sales goals.
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