Jeep’s plan is to move from petrol SUVs to “green” SUVs

DETROIT: The quintessential U.S. SUV brand, Jeep, wants to change its reputation from gasmen to “green” electrified vehicles to attract new buyers and keep its leadership off-road amid an influx of new competitors.

Jeep is expected to be a key part of the growth and electrification plans of Stellantis, its new parent company formed earlier this year through the merger of Fiat Chrysler and French manufacturer Groupe PSA.

Currently, the brand only has three plug-in hybrid electric vehicles outside the United States and a new PHEV from its flagship SUV Wrangler, a vehicle that will be sold worldwide and hit national showrooms throughout the spring. These vehicles are just the beginning of the brand’s plans, according to Jeep CEO Christian Meunier.

“Our vision is to be the greenest SUV brand in the world,” he told CNBC. “We have a very strong plan to offer it through a lot of exciting products in preparation.”

Each new Jeep will offer some form of electrification, Meunier said. These plans are expected to include all-electric vehicles, as well as hybrid and PHEV vehicles that combine electrification with internal combustion engines. The vehicles will be sold with a new “4xe” badge, a game about the brand’s off-road reputation combined with electrification.

Jeep on Monday unveiled a new all-electric version of the Wrangler as a concept vehicle called the “Magneto.” It came months after a Grand Wagoner concept that was a PHEV. Automakers use concept vehicles to assess customer interest or show the future direction of a vehicle or brand.

“It’s a sustainable, stealthy, climbing force,” Jeep North America Vice President Jim Morrison said during a media event for the Magneto. “It’s a zero-emission concept vehicle with Jeep 4×4 capability that has taken it to the next level.”

It’s a task Meunier says Jeep is up to. But reputation and products cannot be changed overnight. It will take years to make the Jeep vision a reality.

“The Jeep has lagged far behind in electrification,” said Michelle Krebs, executive analyst at Cox Automotive. “It’s a huge leap and ambitious to think they’ll jump to the top. They have a lot of competition in that regard.”

Why electrify Jeep after decades of producing SUVs with gasoline? It is pushing to tighten carbon emissions standards and fuel economy regulations around the world. Jeep is also facing pressure from future competitors, such as start-up EV Rivian and General Motors, which is resurrecting its Hummer nameplate as new electric SUVs and all-terrain pickups.

“Electrification is a great opportunity for us,” Meunier said. “Some new dimensions will open up because we’re at full speed.”

Jeep is by far Stellantis ’best-selling brand in the US Electric and hybrid Jeeps will help the manufacturer meet fuel-saving requirements. The company is spending billions on environmental regulatory credits globally to avoid stronger fines for not meeting carbon emissions.

Aside from the regulatory benefits, Jeep executives say it makes sense for the exterior brand to be more environmentally friendly. Electrification can also increase vehicle performance, specifically in acceleration and even some off-road capabilities.

“Jeep’s DNA is very prepared for electrification,” Meunier said. “Branding is something with nature by definition.”

The Wrangler 4xe PHEV is among a handful of new or redesigned vehicles coming out this year for Jeep, most of which feature traditional internal combustion engines.

Following the release of Wrangler 4xe, there is a new three-row version of Jeep’s best-selling Grand Cherokee, as well as a redesigned version of the two-row SUV, including a new PHEV version, later this year. Expected Jeep full-size Wagoneer and Grand Wagoneer SUVs are expected to hit dealership showrooms as well during the second half of the year. It also launches a new V-8 version of the Wrangler.

The new products are expected to cause “significant growth” for Jeep in the United States, Meunier said. “We have a very, very busy year,” he said. “It will be the year of Jeep,” adding that it is the brand’s 80th anniversary this year. Jeep launched special edition vehicles to commemorate the milestone late last year.

Meunier’s confidence comes despite increased competition in crossovers and SUVs. The highlight is that Ford Motor will resurrect its Bronco SUV as a new “family” of vehicles, including a new crossover called Bronco Sport and the upcoming more traditional SUV models later this year.

“We’re going to have substantial growth,” said Meunier, who cited sustainable growth focused on profit margins and loyalty. “We’ll do well.”