Jeep price cuts are working as US inventory improves ahead of incoming EV blitz

After aggressive price cuts on Jeep models, Stellantis said US inventory improved in the third quarter. Despite this, the company’s Q3 revenue slipped 27% ahead of its upcoming EV blitz.

Jeep price cuts are moving US inventory

Jeep has been slashing prices on its top-selling models, including the Grand Cherokee, Gladiator pickup, and Wagoneer, all year. CEO Antonia Filosa confirmed that more could come by the end of 2024.

The company has made reducing bloated US inventory levels its main priority. Stellantis aims for no more than 330,000 vehicles in dealer inventory by the end of 2024.

After releasing third-quarter earnings on Thursday, Jeep’s parent company said the price cuts are working. Stellantis announced that US dealer inventory had been reduced by 51,000 in the third quarter, confirming it was on track to hit its 330,000 target.

“I’m pleased with our progress addressing operational issues, in particular US inventories, which have been reduced meaningfully,” Stellantis CFO Doug Ostermann said on Thursday.

Fueled by lower prices, Stellantis said US market share grew to 8% in September, up from 7.2% in July.

Despite the progress, the company’s overall revenue fell 27% in the third quarter to $35.8 billion (€33.0 billion). Stellantis said the lower top line was due to lower shipments and pricing. Shipments fell by double-digits in North America (-36%), Europe (-17%), and China (-30%).

EV Blitz incoming

Stellantis said its product blitz is on track, with 20 new models set to reach the market in 2024. After launching the new Alfa Romeo Junior, Citroen C3, and Citroen Basalt in Q3, Stellantis is targeting the US market.

The company has a “wave of American product launches” coming over the next few weeks. Jeep, Dodge, and Ram are releasing their first passenger EVs in the US as the company looks to capture its recent momentum.

Jeep’s first global electric SUV, the 2024 Wagoneer S, will arrive at US dealerships this fall (any day now).

Starting at $71,995, the luxury electric SUV gets over 300 miles range and is loaded with Jeep’s latest software and connection tech.

Dodge opened orders for its first electric muscle car, the 2024 Charger Daytona, starting at $59,995 in September.

According to Dodge, a high-performance “Scat Pack” trim is the “world’s quickest and most powerful electric muscle car.”

With up to 670 hp, the electric Charger Scat Pack model can sprint from 0 to 60 mph in 3.3 seconds. The performance model starts at $73,190.

Ram’s first electric pickup, the 1500 REV, will be built at Stellantis’ Sterling Heights Assembly Plant (SHAP). It will be the company’s first US plant to build an all-electric vehicle.

The 2025 Ram 1500 REV will also hit US dealerships this fall with an expected over 350 miles driving range.

Later this year, Jeep is expected to reveal its second electric SUV for the US market, the Recon EV. The “Wrangler-inspired” electric SUV was spotted this week with barely any camo. At first glance, the Jeep Recon EV looks a lot like Ford’s Bronco (check out the images here).