Jeep Slashes Prices in Bid to Reverse US Sales Slump
Overview
Jeep is bucking the trend of rising car prices by cutting costs on key models like the Wrangler. The Stellantis brand aims to revive flagging US sales through a simplified lineup and reduced option charges, a strategic reset after years of declining market share and disappointing performance. This move targets regaining customer trust and clearing inventory as the broader auto market faces slowdowns.
Jeep's Aggressive Price Cuts Signal Turnaround Strategy
Stellantis NV's Jeep brand is launching an unusual price-cutting offensive in the United States, a rare move in a market where vehicle costs have soared. The iconic SUV maker is simplifying its offerings and reducing prices across its lineup to regain market traction.
Price Reductions on Key Models
The Jeep Wrangler Sport S now retails for $42,495, a $1,350 reduction from the previous year. More significantly, the cost of option packages has been drastically trimmed. A popular configuration featuring LED lights, all-terrain tires, and heated seats now adds approximately $5,000, a steep drop from nearly $9,400.
"This is us giving back to the customer the things that make Jeep Jeep," stated Bob Broderdorf, Jeep's chief executive officer. These adjustments are being implemented across all vehicle iterations as part of a broader brand revitalization effort.
Context of Declining Sales
Jeep's US sales saw only a modest 1% rise last year. Stabilizing the brand has been a critical priority for Stellantis CEO Antonio Filosa, especially following the significant sales decline under his predecessor, Carlos Tavares. This decline had marked a major challenge for Tavares, contributing to his departure.
Market Dynamics and Competitive Pressure
Manufacturers have largely maintained high prices, partly due to increased costs influenced by trade tariffs. However, with the average new vehicle price nearing $50,000, up from $35,000 a decade ago, slowing industry sales may compel more automakers to reconsider pricing strategies. Jeep's strategic reset is a direct response to market performance, where it lost ground while competitors thrived.
Historical Performance and Product Issues
Jeep's peak US sales, close to 1 million units in 2018, coincided with the end of an era for its then-parent Fiat Chrysler and the passing of CEO Sergio Marchionne. The subsequent rise of competitors like Ford's Bronco and a general industry shift towards higher-margin SUVs eroded Jeep's dominance. Questionable product decisions, including the discontinuation of the Cherokee in 2023, further exacerbated sales drops, with US figures falling 40% by 2024.
New Models and Inventory Management
Filosa's team is accelerating the introduction of four new or refreshed models within 12 months, including the return of the Cherokee and popular engines. The pricing reset, initiated in 2024, has helped dealers clear excess inventory, and US sales have shown sequential quarterly growth. Jeep achieved a 4% delivery increase in the fourth quarter of 2025, breaking a six-year streak of declines, as many rivals faltered.
Dealer Optimism and Future Outlook
Dealers report renewed enthusiasm. Carlo Merlo, a Jeep dealer, highlighted that popular options like the Sky Slider motorized top are now priced at $995, one-fifth of their previous cost, making them more accessible to customers. This pricing strategy aims to boost both sales volume and profitability for Stellantis, which projects a low-single digit adjusted operating income margin for the latter half of 2025.
Electrification Strategy Shift
Separately, Stellantis confirmed the phasing out of plug-in hybrid versions for Jeep and Chrysler in North America, citing recall issues. For the 2026 model year, the focus will shift to hybrids and range-extended electric vehicles (EREVs) incorporating gasoline generators.
