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Tribune News Service
Tribune News Service
Business
Breana Noble

Jeep to stop selling internal combustion engine-only models in most of Europe by year-end

Jeep will stop selling vehicles powered only by internal combustion engines in major European countries by the end of the year, Christian Meunier, the brand's CEO, said on Wednesday.

That means starting in 2023, Jeep will only have available hybrid models in those countries. Stellantis NV's SUV brand also will launch its first all-electric vehicle next year, which it has teased as a two-door crossover. Jeep plans to have a battery-electric model in each of its segments by 2025.

As for the United States, when conventional powertrains will go to the wayside for the brand hasn't been determined, but it's not anytime soon, Meunier said during a virtual news briefing on a new "Jurassic World" themed ad campaign: "The decision has not been made, because the market is not evolving at the same speed, so we still have a few years to go."

Jeep only has plug-in hybrid options on the Wrangler and newly launched Grand Cherokee in North America. The $53,795 Wrangler 4xe, the U.S.'s most popular plug-in hybrid, according to the company, represents about 25% of Wrangler's North American sales mix.

"If we could produce more, we could sell more," Meunier said. "I would say the Grand Cherokee is probably going to be at least at the same level, at the same magnitude with 25% of the mix."

A combination of components, including battery components, Meunier said, is limiting production of the Wrangler 4xe in Toledo, Ohio. The Grand Cherokee, whose 4xe model starts at $58,095, is built in Detroit.

"The ramp-up is coming," he said, "so I think we're going to be in much better shape by the end of this year."

The automaker sold almost 46,000 Wranglers and more than 75,000 Grand Cherokees in the first three months of 2022 in the United States. It will report second-quarter sales next month.

In Europe, the brand also has plug-in hybrid versions of the Jeep Renegade and Compass crossovers.

Aligned with Stellantis' overall group sales goal, Jeep expects 100% of its sales to be battery-electric in Europe and half in the United States by 2030, Meunier said.

"There is enough demand to make a bold move in Europe," he said. "We're really accelerating the pace, but obviously North America is a few years behind Europe in terms of pure electrification."

Jeep also launched a global ad campaign featuring the Wrangler 4xe ahead of the premiere of Universal and Amblin Entertainment's "Jurassic World: Dominion," the conclusion of the $5 billion film franchise. The movie will include a Wrangler, Gladiator truck and a vintage Jeep Wrangler veneer, said Olivier François, global chief marketing officer.

Members of Jeep Wave, the brand's loyalty program, also will have the opportunity to see the film at drive-in events in cities around the U.S. on June 8, including Detroit, Chicago, New York, Miami and Los Angeles, and on June 9 in Warwick, New Jersey.

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