Jeep is working on introducing some important small SUVs, including replacements for the Jeep Cherokee and the new Jeep Renegade, priced around $25,000. These models aim to fill gaps in the lineup that have negatively affected Stellantis’s profits. The new Jeep Cherokee compact SUV is set to launch in 2025, complementing the larger Grand Cherokee, as confirmed by Stellantis CEO Carlos Tavares during a recent earnings call that he described as disappointing, particularly in North America.

While it was previously known a new Cherokee was coming, the timeline for its release was unclear until now. Tavares mentioned he has reviewed designs for the sixth-generation Cherokee, which is expected to fill the gap left by its discontinuation last year, when the Belvidere, Illinois plant was shuttered. Stellantis has yet to disclose where the new Cherokee will be manufactured.

Tavares pointed out that the absence of the Cherokee has contributed to a 16% drop in U.S. sales during the first half of the year, and the company’s market share decreased by two points to 8.2%. He acknowledged that Jeep lacks representation in the small SUV segment. However, introducing the small Jeep Avenger electric SUV is not the solution for North America; it is already available in Europe and is expected to debut in Latin America within 18 months to support the Renegade.

A New $25,000 Jeep Renegade Will Arrive in 2026

Instead, North America can look forward to a new version of the Jeep Renegade in 2026. Tavares does not regret discontinuing the previous Renegade in North America as it was not financially viable. The upcoming Renegade will be offered in both internal combustion engine and fully electric versions, starting at $25,000, and is aimed to have a cost structure that ensures profitability. It will be produced in North America.

Upcoming Hybrids Set to Expand the Lineup

The Jeep lineup is expected to grow from 10 global models to 13 by 2027, including six fully electric models such as the 2024 Wagoneer S to compete with Tesla, alongside the Recon, which has off-road capabilities. Additionally, there will be range-extended plug-in hybrid versions of the Jeep Wagoneer and higher-end Grand Wagoneer, as well as a Gladiator plug-in hybrid.

This year, Stellantis plans to unveil 20 new vehicles, which includes updates to the Ram 1500 full-size pickup truck featuring both traditional and electric options. The lineup will also comprise the 2024 Maserati Grecale Folgore, an electric variant, along with electric versions of the Maserati GT and GranCabrio.

Stellantis has also felt the impact of phasing out the Dodge Charger and Challenger muscle cars in late 2023, which contributed to a dip in North American shipments from over 1 million to 838,000 units in the first half of the year. Expect the 2024 Dodge Charger Daytona to launch later this year, available in both two- and four-door styles, with options for electric or traditional fuel. Tavares described the new vehicle as exciting, noting its excellent handling, power, and ease of driving, thanks to impressive engineering.

Stellantis’s Efforts to Transform Itself in North America

Tavares spent 90 minutes discussing the challenges Stellantis faces as it works on restructuring. The first half of the year has been marked by high inventory levels, sluggish sales, ineffective marketing, and substantial expenditures.

The company aims to introduce 20 new vehicles in 2024, with half of them currently in production and the other half yet to be developed. The CEO announced that vehicle inventories in Europe have stabilized, and the next priority is North America, where the supply stands at an excessive 94 days. He plans to utilize the summer months, typically reserved for vacations in Europe, to work alongside the U.S. team in North America to address this issue and align production with customer demand.

According to Tavares, he has made difficult decisions in the past and won’t hesitate to make more tough calls, including discontinuing brands that are not performing well. “If they are not profitable, we will close them down. We can’t afford unprofitable brands,” he stated. Stellantis manages a portfolio of 14 brands, and when the company was formed from the merger of Fiat Chrysler and the PSA Group in 2021, Tavares had committed to continuing support for all brands. Recently, they’ve also added Leapmotor, a new Chinese brand that has recently delivered its first 800 vehicles for sale in Europe as of September.

Stellantis reported a profit of $6 billion for the first half of the year, a significant decrease of 48 percent. Their net revenue fell by 14 percent to $92 billion, and their adjusted operating income dropped 40 percent to $9.2 billion. The company aims to achieve an operating profit margin of 10 percent by the end of the year.