A $25,000 all-electric Jeep is coming to the US 'very soon,' CEO says
FILE - A JEEP logo is seen on a vehicle parked on April 17, 2023, in Krakow, Poland. (Photo by Artur Widak/NurPhoto via Getty Images)
Stellantis is set to offer a $25,000 all-electric Jeep vehicle in the U.S. "very soon," according to its CEO.
The price is aimed to lure "middle class" consumers to adopt electric vehicles, Stellantis CEO Carlos Tavares explained during a Bernstein investor conference on Wednesday.
"Affordability is the key success factor right now," Tavares said of the market.
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Few details were shared about the upcoming Jeep vehicle other than the price, which will be offered around $25,000 in the United States – similar to Stellantis’ pricing of the Citroen e-C3 SUV. The low-cost hatchback starts at around 23,300 euros (about $25,237) in the European market.
"In the same way we brought the 20,000 Euro Citroen e-C3, you will have a $25,000 Jeep very soon," Tavares said. "We are using the same expertise, because we are a global company, and this is totally fluid across the engineering world of Stellantis."
Throughout the conference call, Tavares stressed how affordability is crucial for the all-electric vehicle market.
"If you ask me what is an affordable (battery electric vehicle), I would say 20,000 euros in Europe and $25,000 in the U.S.," Tavares said. "So our job is to bring the safe, clean and affordable BEV to the U.S."
In Europe, Stellantis already offers the Jeep Avenger EV, starting at around 35,000 euros (or about $37,900). The Wagoneer S – the first all-electric Jeep to launch in the U.S. – is expected in late 2024 and will be priced at a premium. The starting price has not been released, but some estimates put it at around $80,000.
FILE - Jeep Avenger compact SUV on display at Brussels Expo on January 13, 2023, in Brussels, Belgium. (Photo by Sjoerd van der Wal/Getty Images)
The $25,000 all-electric Jeep offering also comes at a price for Stellantis, which has had to work on cutting costs globally in order to keep electric vehicles affordable for the middle class.
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Electric vehicles cost about 40% more than those powered by gasoline, Tavares said. Without cost reductions, EVs will be too expensive for the middle class – shrinking the market and driving costs up more, according to the CEO.
Earlier this year, Stellantis said it would lay off an unspecified number of workers at its U.S. factories in the coming months to deal with the rapidly changing global auto market.
This story was reported from Cincinnati. The Associated Press contributed.