Stellantis is not leading the charge in the electric vehicle market, having several models in development but launching only the subcompact Fiat 500e in the United States so far. However, CEO Carlos Tavares announced this week that a $25,000 all-electric Jeep is on its way to the U.S., promising that it will be achievable thanks to the technology used in the company’s affordable European electric vehicles.
“At the Bernstein Conference in New York, Tavares stated, ‘Just as we introduced the €20,000 Citroën e-C3, you can expect a $25,000 Jeep very soon, as we are leveraging the same expertise,’” as reported by the Wall Street Journal.
While this sounds plausible, it’s worth noting that Stellantis already offers a smaller European electric vehicle in the U.S. market priced at $34,095. Tavares did not provide specifics regarding the type of Jeep model that would be available for $25,000. It raises questions about how the company can produce a larger, potentially off-road capable vehicle at a price point that is $10,000 lower than its existing EV, especially since modern EV pricing trends start at that level. Even if this affordable EV qualifies for tax credits due to being manufactured in the U.S., Stellantis will need to significantly reduce its costs.
Regardless of how they manage it, Jeep must begin offering more budget-friendly options, whether electric or otherwise. The current lineup leans towards more luxurious and high-margin vehicles aimed at affluent customers, while entry-level models are surprisingly outdated and still too expensive for what they offer.
Jeep dealers have voiced concerns that the brand has become too expensive for many buyers, a sentiment echoed by the price of the base-model Cherokee, which starts at $39,290 when shipping is included. The compact Jeep Renegade, made in Europe on an outdated platform, has a starting price of $30,040. Although the Jeep Compass is closer to Tavares’ target with a price of $27,495, there are numerous better alternatives available for that amount.
This raises the question of how Stellantis plans to convince consumers it can deliver an all-electric Jeep priced at $25,000. If it manages to do so, will Jeep’s traditional customer base embrace it? Jeep is synonymous with rugged reliability and off-road performance, so it seems questionable whether a vehicle that may essentially be a redesigned Citroën e-C3 fits that image.
However, this may align with the direction the electric vehicle market is heading. The Chevrolet Bolt is set to return after GM recognized the mistake of discontinuing it, while Ford is considering developing a low-cost EV option. Both companies have experience in the electric vehicle market, which could make their entry into the budget sector more feasible. In contrast, Stellantis’s current U.S. offerings do not inspire much confidence in their ability to successfully navigate this transition..
