Jeep has lost its way: The American off-road brand has entered survival mode for 2025, but can the new Jeep Avenger electric SUV and potential hybrid Cherokee replacement turn it around? | Analysis

At the start of 2024 we asked the question ‘is Jeep lost?’ and the answer has categorically come back in the affirmative. The American brand is, to put it bluntly, in trouble and there doesn’t appear to be an obvious solution.

Sales have plummeted since its 2014 high of more than 30,000 and nothing appears to help stop the slide. At the time of writing, Jeep is on track to sell less than 2500 vehicles in 2024, although there is a small chance the all-new Avenger electric model could provide a December boost.

In fairness to Jeep, that local sales high of a decade ago was during a period of unsustainable growth when the company's then management had some, let's say loose strategies to help build sales. The brand has since acknowledged it has no plans to return to those inflated sales highs.

Back to today. The problem isn’t just limited to Australia, though, with Jeep’s home market also in sharp decline. Jeep’s US sales have fallen from nearly one million in 2018 to approaching 600,000 for this year.

The good news for Jeep Australia is this suggests the downturn isn’t a specific local problem. The bad news for Jeep Australia is this suggests there is a fundamental problem with the way the brand is doing business that is resulting in a disconnect between it and potential customers.

The even worse news is, despite Jeep’s ‘go anywhere’ image, it well and truly got lost in the wilderness and cannot find a path back to safety. Its decision to move towards electrification seemed unusual even at the height of the EV boom, given Jeep’s customers either love adventure or the idea of it. Now, with EV sales softening, the arrival of the Avenger and the upcoming Recon and Wagoneer S are unlikely to turn the brand’s fortunes around.

Early reviews for the Avenger are positive, including from CarsGuide’s Chris Thompson, but there’s no guarantee critical acclaim will transfer to significant sales. The premium price for a small SUV will make the Avenger a niche offering at a time when Jeep needs something of more volume.

Its core models, namely the Grand Cherokee, is simply not as popular as it once was thanks to the previous model’s repeated recalls damaging consumer faith in the brand and the new model’s more premium positioning and price. When Jeep peaked in 2014, more than half of its sales were the Grand Cherokee and the Wrangler was a niche off-roader. Fast forward to today and the Wrangler is currently the brand’s biggest seller in Australia.

Jeep’s current position is simply unsustainable and something must be done to change its trajectory, otherwise it risks following the fate of Citroen and Holden out of the Australian market. Which is a remarkable thing to say about a brand as iconic as Jeep, especially in an era where ‘tough’ SUVs are in high demand.

Jeep’s global CEO, Antonio Filosa, has revealed a plan to try and turn around the company’s fortunes, specifically in the US. A new hybrid Cherokee mid-size SUV is confirmed for 2025 in the American market, but there’s no confirmation when, or even if, it will be available in Australia.

Overhauling the line-up to give it more customer appeal will not be a quick or easy task, so Jeep fans should buckle up for a bumpy ride in 2025.