Jeep’s plan to move from gas-guzzling SUVs to ‘green’ off-road EVs

DETROIT – America’s quintessential SUV brand Jeep wants to change its reputation from gas guzzlers to ‘green’ electrified vehicles to attract new buyers and maintain its off-road leadership amid an influx of new competitors.

Jeep is expected to be an important part of the growth and electrification plans for Stellantis, the new parent company formed earlier this year by the merger of Fiat Chrysler and French carmaker Groupe PSA.

The brand currently has only three plug-in hybrid electric vehicles available outside of the US and a new PHEV of its flagship Wrangler SUV, a car that will be sold worldwide and arriving in domestic showrooms this spring. According to Jeep CEO Christian Meunier, these vehicles are just the beginning of the brand’s plans.

“Our vision is to become the greenest SUV brand in the world,” he told CNBC. “We have a very strong plan to make that happen through a lot of exciting product in the pipeline.”

Any new Jeep will provide some form of electrification, Meunier said. Those plans are expected to include all-electric vehicles as well as hybrid and PHEVs that combine electrification with internal combustion engines. The vehicles will be sold with a new “4xe” badge, a play on 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, the “Magneto”. It came months after a Grand Wagoneer concept that was a PHEV. Automakers use concept vehicles to gauge customer interest or show the future direction of a vehicle or make.

“It’s a durable, low-profile, rock-climbing force,” said Jim Morrison, vice president of Jeep North America at a media event for the Magneto. “It is an emission-free concept car with Jeep 4×4 capability taken to the next level.”

It is a task that Meunier says Jeep is ready for. But reputations and products cannot be changed overnight. It will take years for Jeep’s vision to become a reality.

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

Why electrify Jeep after decades of producing gas-guzzling SUVs? It is powered by tightening carbon emissions standards and fuel economy regulations around the world. Jeep is also under pressure from emerging competitors such as the EV start-up Rivian and General Motors, who are reviving its Hummer nameplate as new off-road, all-electric SUVs and pickups.

“Electrification is a great opportunity for us,” said Meunier. “It will open up some new dimensions as we are moving forward with it at full speed.”

Jeep is by far the best-selling brand for Stellantis in the US. Electric and hybrid jeeps will help the car manufacturer to meet fuel consumption requirements. The company spends billions worldwide on environmental regulations to avoid higher fines for not achieving its CO2 emissions.

Legal benefits aside, Jeep executives say it makes sense for the outdoor brand to be more environmentally friendly. Electrification can also improve vehicle performance, particularly in terms of acceleration and even some off-road capabilities.

“Jeep’s DNA is well prepared for electrification,” said Meunier. “The brand is by definition one with nature.”

The Wrangler 4xe PHEV is one of the few new or updated vehicles entering the Jeep market this year, most of which feature traditional combustion engines.

After the dealership of the Wrangler 4xe, a new three-row version of Jeep’s best-selling Grand Cherokee and an updated two-row SUV will follow later this year, including a new PHEV version. The highly anticipated Jeep Wagoneer and Grand Wagoneer SUVs are also expected to hit dealers’ showrooms in the second half of the year. It is also launching a new V-8 version of the Wrangler.

The new products are expected to lead to “significant growth” for Jeep in the US, Meunier said. “We have a very, very busy year,” he said. “It will be the year of Jeep,” adding that this year marks the brand’s 80th anniversary. Jeep has released vehicles in a special edition to commemorate the milestone at the end of last year.

Meunier’s confidence comes despite increasing competition in crossovers and SUVs. Most notably, Ford Motor is reviving its Bronco SUV as a new “family” of vehicles, including a new crossover called Bronco Sport and upcoming more traditional SUV models later this year.

“We will have substantial growth,” said Meunier, citing sustainable growth focused on profit margins and building loyalty. “We’re going to do well.”