Jeep’s New Direction: Electrification and Branding Changes
Jeep is not meeting its potential; mistakes have been made, and amends are coming in the form of new models. This was highlighted in discussions with its new global CEO, Antonio Filosa.
Jeep is a brand in transition towards electric vehicles and under new leadership. It has successfully launched plug-in hybrids, and the first pure electric model, the Jeep Avenger subcompact SUV, is currently on sale in Europe and receiving positive feedback. North America will welcome its first fully electric Jeep with the Wagoneer S premium midsize SUV, which is set to start production in the second quarter and become available in the fall. By the end of this year, the Jeep Recon, an electric off-road vehicle, may also join the lineup, although officials have not specified whether it will be a 2024 or 2025 model.
The Wagoneer S and Recon models being showcased to dealers and media are 99 percent production-ready, according to Filosa. While we couldn’t take pictures of these near-production concepts during our meeting, existing images reflect their appearance accurately.
Wagoneers Are Jeeps, Just Like You Thought Already
A minor revision to the Wagoneer S signals a major shift for the brand—if you examine the Wagoneer S’s tail, you’ll see it now features “Jeep” badging on the back. This change comes as the brand moves away from its earlier strategy of establishing Wagoneer as a sub-brand, which Filosa acknowledges was confusing for customers and did not gain traction. Henceforth, all models, including Wagoneers, Grand Wagoneers, and the Wagoneer S, will retain Jeep branding. Filosa emphasizes that this should have been done from the outset. The transition to Jeep branding will occur swiftly, prioritizing the success of the existing Wagoneer family under the Jeep name before considering new models with the Wagoneer label. Bill Peffer, the newly appointed head of Jeep in North America, points out there is substantial equity in the Wagoneer name, which has a legacy spanning over 60 years.
Moreover, there is an ongoing effort to streamline the number of configurations available in the Wagoneer lineup. This simplification is aimed at enhancing consumer ease, reducing complexity, lowering costs, and improving quality. Notably, there will still be both short- and long-wheelbase variants of both the Wagoneer and Grand Wagoneer, with the longer models distinguished by the letter “L.”
More Electrons
Jeep plans to offer electrified options across its entire range by 2025. The brand has seen success with its plug-in hybrids, specifically the Jeep Wrangler 4xe, which is the top-selling PHEV in the U.S., followed by the Grand Cherokee PHEV. Currently, these models capture over 50 percent of the market share, and projections suggest this will grow to 55-60 percent with sales anticipated at 175,000-180,000 plug-in hybrids this year. Additionally, approximately 10,000 pure EVs are expected to be sold once the Wagoneer S is available.
We anticipate the introduction of 4xe versions of the Gladiator pickup and Grand Wagoneer, as previously announced. The Grand Wagoneer 4xe was originally slated for release this year, boasting a combined gas engine and electric motor range of about 500 miles per charge.
In summary, Jeep SUVs will expand their presence across various market segments, increasing from 49 percent in 2023 to 60 percent this year, with the Wagoneer competing within the competitive D-segment. Growth is projected to reach 85 percent in 2025, with new offerings, including the Recon and five other models, some of which will introduce new nameplates.
Lastly, we may see Wagoneers and Grand Wagoneers incorporate range extenders similar to the Ram 1500 Ramcharger, which shares the same platform. Although Filosa did not confirm the inclusion of range extenders in the Jeep lineup, he mentioned that it is a consideration, with implementation potentially taking 18 to 24 months.
Filosa’s career spans various roles within the Fiat brand across multiple countries, including the United Kingdom, Spain, Chicago, Argentina, and an 18-year stint in Brazil. There, he led Stellantis Latin America and oversaw the introduction of a new Jeep plant, launching three models. Under his leadership, Jeep’s market share skyrocketed from less than 1 percent to an impressive 20 percent.
