Jeep targets SUVs to make its EV lineup rival Tesla
Jeep plans to launch a defensive tactic in the electric vehicle market by focusing on the sale of SUVs.
The iconic brand will add SUV models in 2025 even though the market is already very competitive.
The All-American brand said Sept. 8 that it will begin selling four new all-electric SUVs in North America by 2025.
SUVs include a luxury Grand Wagoneer called the Wagoneer S and a Wrangler-inspired off-road vehicle called the Recon.
These new EVs will be added to its current models and will not replace its current models such as its flagship Wrangler off-road SUV.
“Our goal is very clear: to become the world leader in SUV electrification,” said Christian Meunier, CEO of Jeep, during a press briefing.
The Recon, which has been considered a “sister” to the Wrangler and the electric Grand Wagoneer, called the “S,” is expected to begin production in 2024, Jeep said. Other models have not been revealed.
Jeep, whose parent company is Stellantis (STLA) sells SUVs in a very competitive market, as more and more consumers have turned to buying EVs as battery ranges have increased and the number of public charging stations has increased.
The company’s off-road vehicles will appeal to drivers who want the outdoor experience they’ve known for decades.
Jeep will also launch four new electric vehicles in Europe by 2025. The lineup includes a small SUV called the Avenger that Jeep won’t sell in the United States. Meunier did not specify how many new electric vehicles are expected to be sold on the two continents.
By 2025, Jeep’s ambitious plan is to equip all of its vehicles with “electrification” that includes hybrids, plug-in hybrids or all-electric modes.
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The Avenger, which is smaller than the brand’s entry-level Jeep Renegade, will arrive in European showrooms in early 2023, according to the company.
In 2021, Jeep unveiled a concept called Magneto, based on the three-door, all-electric Wrangler convertible. The company followed up with the 2.0 iteration of Magneto this year.
While the look remains the same with a six-speed manual gearbox and an electric and blue/white theme, performance has been upped for drivers to “buckle up and grab with both hands”, as Jeep puts it.
In March, Jeep revealed how it will bring its first full-battery electric vehicle to market in early 2023. The automaker will also bring an off-road SUV to market starting in early 2024.
Jeep is behind the times and currently lacks fully electric vehicles, but offers a stopgap solution. The automaker is selling the Jeep Wrangler 4xe Plug-in-Hybrid and is planning the Jeep Grand Cherokee 4xe soon.
The company said half of its US sales and all of its European sales will come from electric vehicles by 2030.
The long list of Jeep competitors
Jeep has allowed its competitors to take the lead in the sale of electric vehicles.
Ford (F) already owns an electric SUV, Mach-E, by reinventing its mythical Mustang.
One of the first Big Three automakers, General Motors (GM) launched its highly anticipated Lyriq electric SUV, the first electric vehicle from its premium Cadillac brand which starts selling at $62,990.
The company unveiled its new SUV on September 8, the Chevrolet Equinox EV, which is cheaper than its competitors and will retail from a starting price of $30,000.
GMC, GM’s other brand, is selling the massive Hummer electric SUV while Tesla (TSLA) already offers the Y SUV model.
The average price for electric vehicles starts at $47,500, according to Edmunds.com.