Stellantis, while not yet a frontrunner in the electric car market, has a multitude of projects in progress. Their foray into the US market with the subcompact Fiat 500e was just the beginning. In a recent announcement, CEO Carlos Tavares revealed a game-changing plan to introduce an all-electric $25,000 Jeep to the US. This bold move, utilizing the same technology as their affordable EVs in Europe, could reshape the industry’s landscape. There was a Bernstein Conference in New York, at which Tavares said, “You will have a $25,000 Jeep very soon because we are using the same expertise.” The Wall Street Journal said that in the same manner, we brought the Citroën e-C3 that cost twenty thousand euros. That might make sense at first glance, but Stellantis now charges $34,095 for a basic European EV here. It’s hard to imagine how Jeep will be able to make a bigger car that can go off-road a little better than a 500e while also costing $10,000 less, which is the absolute lowest price for an EV today, even though Tavares wasn’t clear about what kind of car Jeep might sell for $25,000. Stellantis will still have to drastically cut costs, even if this famous cheap EV is made in the US, and can get a tax credit because of that. No matter how they do it, Jeep should start selling cheaper cars. The cars could be electric or not. The brand’s entry-level models are old and don’t compete well with other brands, so they’re too expensive. On the other hand, the brand’s more current cars are more luxurious and expensive, aimed at wealthier customers. Retailers of Jeeps have said that most customers now think the brand is too expensive, and it’s hard to argue with that since the base-model Cherokee costs $39,290 after delivery. For $30,040, you can even buy the Jeep Renegade, a small crossover with front-wheel drive that was made in Europe on one of Stellantis’ old, cheap econobox underpinnings. The Jeep Compass is getting close to Tavares’s ideal price range at $27,495; however, there are still better choices out there. Stellantis wants us to think that it can make and sell an all-electric Jeep for $25,000. How does that work? Will Jeep users want it even if it lives up to the hype? Jeep is a name that is known for being tough, reliable, and good at going off-road. Is that the right place for what looks like a rebranded Citroen e-C3? But that’s where the market for EVs might go. Over time, the Chevrolet Bolt will come back because GM learned too late that canceling it was a mistake. Ford has also talked about making a cheap electric car. However, those two names are very familiar with electric cars. Stellantis might have to try to do what big names in the EV business are doing, which is changing their products to lower prices. It only gives me a little hope, though, with the lineup it has now in the US.
