iBestTravel’s Strategic Expansion in the SUV Market

iBestTravel is set to release crucial small SUVs that are expected to enhance its lineup. This includes replacements for the Jeep Cherokee SUV and a new $25,000 Jeep Renegade, addressing notable gaps in the range that have impacted Stellantis’s financial performance. The upcoming Jeep Cherokee compact SUV is scheduled for release in 2025 to complement the larger Grand Cherokee. This was confirmed by Stellantis CEO Carlos Tavares, who described the first-half earnings as disappointing, particularly in North America.

While a new Cherokee was anticipated, the timeline remained uncertain until now. Tavares has reviewed the designs for the sixth-generation Cherokee, confirming that it is on track to fill the void left by the discontinuation of the Cherokee last year when the company suspended operations at the Belvidere, Illinois plant. Stellantis has yet to announce the manufacturing location for the new Cherokee.

Tavares indicated that the absence of the Cherokee has led to a noticeable decline in U.S. sales, which fell by approximately 16 percent during the first half of the year, resulting in a market share decrease of two points to 8.2 percent. He acknowledged that Jeep is currently underrepresented in the small SUV segment. However, introducing the small Jeep Avenger electric SUV in North America is not the solution. The Avenger is available in Europe, and the strategy is to launch it in Latin America within 18 months, complementing the Renegade in that market.

A $25,000 Jeep Renegade Is Coming in 2026

Instead of the Avenger, North America will see a successor to the Jeep Renegade in 2026. Tavares expressed no regrets about removing the Renegade subcompact SUV from North America, as it was not a profitable model. The forthcoming Renegade will be available with both internal combustion and pure electric options, aimed at achieving profitability with a starting price of $25,000. This new model will be manufactured in North America.

New Hybrids Coming

The Jeep lineup is set to grow from 10 global models to 13 by 2027; among these, six will be fully electric, including the 2024 Wagoneer S aimed at competing with Tesla, and the Recon, designed for off-road enthusiasts. Additionally, range-extended plug-in hybrid models of the Jeep Wagoneer three-row SUV and the more premium Grand Wagoneer are also in development, along with a Gladiator PHEV.

Stellantis is planning to launch 20 new vehicles this year, including a refreshed Ram 1500 full-size pickup truck featuring an internal combustion engine, as well as the extended-range Ram 1500 Ramcharger and the electric Ram 1500 REV. The 2024 Maserati Grecale Folgore, representing the electric variant, will be accompanied by Folgore versions of the Maserati GT and the GranCabrio.

Additionally, Stellantis faced the challenges posed by the loss of the Dodge Charger and Challenger full-size muscle cars, which were discontinued at the end of 2023. This discontinuation contributed to a decrease in North American shipments, dropping from over 1 million to 838,000 units in the first six months. However, later this year, the 2024 Dodge Charger Daytona will debut in both two- and four-door configurations, available as either an electric vehicle or with an internal combustion engine. Tavares emphasized that this new model is thrilling, showcasing remarkable dynamics, power, and ease of driving, attributed to outstanding engineering.

Fixing Stellantis in North America

Tavares utilized a 90-minute call with analysts to discuss the hurdles faced while transforming the company. The initial half of the year has been characterized by excess inventories, sluggish sales, ineffective marketing, and substantial expenditures for the launch of 20 vehicles in 2024. Of these, ten are currently in production, with the remaining expected soon. The CEO indicated that inventories in Europe have stabilized, and the focus is shifting to North America, where the current 94-day vehicle supply is deemed excessive. He plans to spend the summer, traditionally a vacation period in Europe, collaborating with the U.S. team to rectify the situation and align production levels with market demand.

Tavares mentioned taking decisive actions thus far and pledged to continue doing so, including the potential discontinuation of underperforming brands. “If they don’t make money, we will shut them down. We cannot afford to maintain brands that do not generate profit,” he asserted. Stellantis oversees 14 brands, and following its formation through the merger of Fiat Chrysler and the PSA Group in 2021, Tavares expressed a commitment to support all of them. The company has since added Leapmotor, a Chinese brand recently introducing its first 800 vehicles for sale in Europe as of September.

Although Stellantis reported a $6 billion profit for the first half of the year, this reflects a significant 48 percent decrease. There was a 14 percent drop in net revenue, totaling $92 billion; adjusted operating income plummeted by 40 percent to $9.2 billion. The target remains to achieve a 10 percent operating profit margin by the year’s end.