June 19, 2024
SUVs & Crossovers

Stellantis CEO promises a $25,000 Jeep electric vehicle will arrive in the U.S. ‘soon’

Stellantis CEO Carlos Tavares, much like the late Fiat Chrysler America chief Sergio Marchionne before him, remains cautious about the move towards electric vehicles, which seems to be driven by unpredictable regulations, market expectations, and large amounts of money. However, Tavares has overseen the release of electric vehicles that move the company forward in this direction. Surprisingly, he recently announced at a conference that an affordable electric Jeep will be coming to America “very soon.” The unexpected part is his enthusiasm for the project and the choice of Jeep as the brand to launch it.

During a Bernstein investor summit, CNBC reported that Tavares stated, “If you ask me what is an affordable BEV, I would say 20,000 euros in Europe and $25,000 in the U.S. So our job is to bring the safe, clean, and affordable BEV to the U.S. at $25,000. We’ll make it happen.” He also mentioned, “In the same way we introduced the 20,000 euro Citroen e-C3, you will soon have a $25,000 Jeep.”

Currently, the only battery-electric Jeep available is the Avenger, which is sold in Europe for around 24,000 euros ($25,950 U.S.) with a hybrid gas engine or approximately 38,000 euros ($41,090 U.S.) in electric form. This model comes with a 54-kWh battery, a 154-horsepower motor on the front axle, and a WLTP range of 217 miles. The Citroen e-C3 mentioned by Tavares has a smaller battery, a less powerful motor, and a WLTP range of 199 miles. There is also a more affordable version in development with a smaller pack and a range of 124 miles.

According to the French Jeep site, the Avenger EV is “Conceived for the real world,” a concept unfamiliar to American Jeep buyers. The decision to not bring the Avenger to the U.S. was influenced by the fact that the American market prefers midsize and large SUVs over vehicles in the B segment, where the Avenger competes. Therefore, Jeep is focusing on launching other electric vehicles like the Wagoneer S and Jeep Recon, which will cater to the midsize segment globally, including the U.S.

Removing $16,000 from a car’s price tag, even after deducting European taxes, is a significant reduction. The previous Renegade model started at around $29,000 in the U.S. We can speculate that Tavares selected Jeep for this endeavor due to its ability to command premium prices. It will be interesting to see what kind of electric Jeep will be available for $25,000 here. At the same conference where he announced the Jeep EV, Tavares mentioned, “The EV race is now a cost-cutting race,” hinting that the supplier base will shift towards countries with lower production costs. This signals imminent changes in the industry.

FAQs

1. When will the affordable electric Jeep be available in the U.S.?
The CEO mentioned that the electric Jeep will arrive in America “very soon.”

2. What will be the starting price of the electric Jeep in the U.S.?
Tavares stated that the price target for the electric Jeep in the U.S. is $25,000.

Conclusion

Stellantis is making significant strides towards electrification with the upcoming launch of an affordable electric Jeep in the U.S. The CEO’s commitment to offering a clean and affordable electric vehicle reflects the company’s dedication to shaping the future of mobility.

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