How Are All Those New Jeeps Doing, and What Comes Next?
Jeep is in the middle of one of its greatest product expansions, adding larger three-row models to the lineup, and there are more electrified vehicles to come. So, we sat down with Jeep brand chief Jim Morrison to see how the brand is doing.
The rollout of the fifth-generation of the venerable Jeep Grand Cherokee started last year with the unusual step of launching with the new three-row 2021 Jeep Grand Cherokee L. It marks the first time a product with the venerable Jeep Cherokee name comes with seven-passenger seating. The larger L is in full sales swing and doing what it was intended to do: keep loyal buyers from leaving the brand when they need a third row, while attracting new customers who could not find a Jeep that met their needs before, Morrison says.
Jeep is in its second month of sales of the fifth-gen of the traditional five-passenger, two-row 2022 Jeep Grand Cherokee and the SUV is turning quickly, within days on the lot.
It is still early, but Morrison thinks the mix of two-row and three-row Grand Cherokees could end up being about half and half. The segment skews 70 percent three-row, but the smaller Grand Cherokee has a loyal following with more than 7 million on the road. It comes down to the customer's stage of life; how much do they need tow and how much room do they need. "I like the fact we have an option for them," Morrison says. The SUV is attracting buyers new to the Jeep brand, customers the automaker hopes to keep in subsequent purchases.
2022 Jeep Grand Cherokee 4xe Close to Launch
Jeep is preparing to launch another new variant, the 2022 Grand Cherokee 4xe plug-in hybrid, which will reach dealerships this spring. It follows the formula Jeep used for the Wrangler 4xe that has been well received. The Grand Cherokee 4xe, which gets 25 miles of all-electric range and 56 MPGe, has an even more sophisticated 4WD system than the Wrangler, with faster torque transfer.
With its capability, Morrison thinks the take rate of the 4xe could be 30 percent or more of total Grand Cherokee sales. Press reports have highlighting the high price tag—it costs about $10,000 more for the 4xe than an equivalent model with the entry-level V-6. But Morrison says the figures need some context. Not only does the 4xe provide greater performance and tech, but the high residuals and government rebates for electrified vehicles could result in monthly leases or payments being less for the 4xe than the gas-powered model. Orders are strong so far, but the brand chief will not say how many there are.
Is there more to come? Morrison won't say if there is a Grand Cherokee Trackhawk in the works. He points out that the 4xe provides superior performance to a V-8. And then there is the timing: performance versions traditionally come online a few model years after launch to keep the lineup fresh.
What Gets 4xe Treatment Next?
With plans to electrify all Jeeps by 2025, we want to know which model gets 4xe treatment next and when we will see it. "The engineers are working on a lot of Jeeps," is all the tight-lipped Morrison will say.
It is not necessarily easier to add a plug-in hybrid to a new model like the Wagoneer family as opposed to an older model like the Jeep Gladiator pickup truck, he says. Jeep is working on dedicated platforms which will make the rollout the smoothest.
Once again the automaker will use the annual Easter Jeep Safari event to showcase electrified Jeep concepts and gather customer feedback.
Response to New Wagoneer Family
Meanwhile, the new 2022 Jeep Wagoneer three-row SUV and the more upscale 2022 Jeep Grand Wagoneer play in white space for Jeep as full-size premium SUVs. The automaker is happy to have the storied nameplate back in the lineup. "We just like saying Grand Wagoneer again," Morrison says.
When the Grand Wagoneer left the marketplace it had a reputation as the most luxurious and technically advanced and capable vehicle, Morrison says. "It's getting that reputation again with the best 4WD system and advanced safety and tech and capability. People buying them love them."
The fullsize SUV segment runs about two-thirds mainstream models, one-third premium. So far, the Grand Wagoneer is selling above expectations, Morrison said. Some of it is early adopters but some of it is the strength of the nameplate.
There is a bit of cross-shopping between the Grand Cherokee L and the Wagoneer but when customers see them in the showroom and see the difference in size and towing capacity, they are able to easily make the choice right for them.
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