Jeep and Ram’s parent company, Stellantis, is betting on cheaper vehicles as it fights for market share in what’s being described as an “emergency room” operation.
Jeep and Ram shift to cheaper vehicles to drive growth
After Stellantis’ sales in the US crashed 15% last year, the automaker’s most profitable market, CEO Carlos Tavares, abruptly resigned.
And the fallout wasn’t just in the US. Stellantis reported consolidated shipment volumes globally fell by 12% in 2024 due to “temporary gaps in product offerings” and bloated inventory.
Stellantis described it as “a year of stark contrasts” for the struggling automaker. Left with Taveres’s mess, the company’s new CEO, Antonion Filosa, is on a mission to turn things around and recapture market share in North America and Europe.
Filosa, who took over the reins of the world’s 4th largest automaker in June, has launched what one source described to Reuters as an “emergency room” operation.
The comeback initiative is focused on driving sales growth, rather than profits, in a stark contrast to his predecessor.
Stellantis will sacrifice profits as it bets on cheaper vehicles, including under the Jeep and Ram brands, to regain market share. According to sources, the new plans are designed to draw buyers back to the brand, restore confidence among investors and dealers, and keep its facilities up and running.
“Stellantis is accelerating actions… to correct past strategic and operational decisions,” a company spokesperson said.
Reuters spoke to six separate sources: Two company insiders, two outside the company familiar with the plans, and two “representatives at major Stellantis shareholders,” all of whom wished to remain anonymous.
The new initiative reportedly has the backing of major investors, including Exor, the holding company of the Italian Agnelli family, and the French government.
A source inside Stellantis claimed the company is scrapping its EV targets in the US as Filosa makes it his main priority. The automaker aimed to have 50% of its US sales be fully electric by 2030.
In October, Stellantis announced plans to invest $13 billion, its largest yet, over the next four years to drive growth in the US and help offset the tariffs.
Although details of the so-called “emergency room” operation are still emerging, sources said it will include more affordable Jeep and Ram vehicles.
Jeep looks to regain buyers after losing market share to the Ford Bronco and other cheaper alternatives with the new Recon EV, alongside the Cherokee and Compass. Ram, which dropped plans to launch its fully electric pickup, is launching its first SUV and a new midsize truck.
In the long term, Filosa is tasked with determining which of Stellantis’ 14 brands have a viable future, according to one of the sources.
Can cheaper vehicles save Jeep and Ram in the US? It might be tough with nearly every automaker promising more affordable vehicles are coming soon. Let us know your thoughts in the comments below.
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