In a bold move against industry trends, the iconic Jeep brand is attempting a major comeback by reducing prices across its lineup. This strategy marks a significant shift for the SUV maker, which has seen its market position erode dramatically in recent years.
A Counter-Strategy in an Expensive Market
While most automakers continue to raise prices, Stellantis NV's Jeep division is going in the opposite direction. The brand has simplified its offerings and is charging less for both base models and popular add-ons. This is a direct response to a steep decline in sales and market share.
Jeep's share of the U.S. market dropped to just 5.6 per cent last year, a far cry from its peak. The brand did, however, snap a six-year losing streak in 2025, with deliveries rising four per cent in the fourth quarter. For the full year, U.S. sales saw a modest one per cent increase.
Specific Price Reductions and a New Direction
The pricing reset is tangible. For example, the base price for a Wrangler Sport S is now US$42,495, a reduction of US$1,350 from the prior model year. More significantly, the cost to equip that vehicle with key features like LED lights, all-terrain tires, and heated seats and steering wheel has been slashed from nearly US$9,400 to around US$5,000.
"We did this on every car," stated Bob Broderdorf, Jeep's chief executive officer. "This is us giving back to the customer the things that make Jeep Jeep."
The turnaround effort is a top priority for Stellantis CEO Antonio Filosa, who is working to undo damage from his predecessor's tenure. Under Carlos Tavares, Jeep's U.S. sales plummeted by 40 per cent by 2024, a key factor in his sudden exit over a year ago.
The Road to Recovery and Market Challenges
Jeep's heyday was in 2018, when it sold nearly one million vehicles in the United States. Its decline was accelerated by increased competition from revived models like the Ford Bronco and a series of its own missteps, including discontinuing the popular Cherokee in 2023.
Analysts note that Jeep's strategy is an outlier. "Stellantis found out pretty quickly, if we cut costs, cut content and jack up prices for the typical consumer, we lose," said Erin Keating, an executive analyst at Cox Automotive. "They have had to do a structural reset."
Filosa's team is now on an aggressive product offensive, planning to launch four new or refreshed models within a year, including the return of the Cherokee. The price cuts, which began in 2024, have already helped dealers reduce bloated inventory. With the average new vehicle price nearing US$50,000, Jeep's gamble on affordability could signal a new direction for a brand fighting to reclaim its heritage.
