So it’s an amazing company that was created only a few months ago — at the beginning of this year in January. And since then, a lot has been accomplished. This is a company that incorporates 14 brands: 12 automotive brands and two mobile services, financial services and products of that nature. So I would say a house of brands. And it’s a house of brands with many, many different opportunities around the globe. A lot of brands that have a very, very strong history, a very strong heritage, and the good news is very few of them have any commonality in terms of customer targets and geographical coverage. So they are very complementary brands.
So the way it works within Stellantis is pretty simple. It’s a metrics organization where you have, basically, the regions, the functions, and the brand. And within the executive committee, the executives report to Mr. Tavares [Stellantis CEO Carlos Tavares], we work it out and find the best solutions for the corporation. We do this with very strong support from each other to make things happen. And when there is an arbitration, obviously we have a CEO to make the final call. So pretty simple, pretty straightforward, and it is working very well so far.
So I think one of the challenges, obviously, is to have as many synergies as possible but keep the DNA of the brand intact. And that’s why the power of the global CEO is very important. So Carlos Tavares has appointed a global CEO for each brand and the role of these CEOs is to make sure that the integrity of the brand is there, that the DNA is there, and that we respect the product and we make it even richer. Instead of spending money on common technologies and common architecture, that really are common for 90 percent of the use cases, we spend the money on differentiation. It is a superb opportunity for each brand.
Because really, the things that need to be common don’t really make a difference to the customer, and we can commonize them. But the things that are different, really need to be different in terms of Jeep. Obviously there are a lot of components related to off-road, adventure, freedom, open air, the big tires, as you mentioned — and these are the things on which we will never compromise. So this makes it really interesting because obviously there are some trade-offs we do make, but at the end of the day, I think it gives us a lot of horsepower in terms of creating the infrastructure, the architecture, and then work from that architecture to develop the best product possible. And that is a fascinating opportunity for us.
First, it’s a lot of things they don’t see. Second, the underpinning and then the tuning of everything related to electronics to make the product appropriate, for on-road performance for Maserati or an Alfa Romeo [two other brands owned by Stellantis] and off-road oriented for a Jeep Wrangler.
At the same time, the Jeeps that you used to know 10, 20 years ago have evolved a ton. I think the challenge we have now — and I think we deliver extremely well with the Grand Cherokee, the Grand Wagoneer and the new Jeeps that are in the market now — is to find that perfect balance between on-road and off-road performance. Because we don’t want to compromise on either one. The new Grand Cherokee that was just announced is that “wildly civilized” product that we’re very proud to bring, because we think we’re the best in class in both worlds.
About Chrysler Brand:I think on the Jeep side, I don’t know if you’ve ever seen that slogan, but: “We don’t make Jeep, you do.” When we talk to the customers, that’s always what we’re trying to do within the Jeep family and the community of Jeep. And everything we do is an answer to a request from the customer or something that we know is going to be very valuable for our community and our customers. That’s really the number one thing we always have in mind. In terms of the Stellantis way, obviously I wouldn’t say that by any means the Stellantis way is completely finalized. There are a lot of things still in motion. The fact that the brands have a lot of power is a benefit. It forces us to find smart solutions to deliver on what the customers need for each brand, and emphasize that.
So we’re going to have that 90 percent commonality [with other Stellantis brands] on ADAS (advanced driver-assistance systems), we’re going to have a 90 percent similar approach to software, but we’re going to have that 10 percent difference which is going to be personalized for Jeep. Personalization for Jeep is very important because when you drive off-road, there are certain things you need to bring up to your screen and other functions you don’t need. So it’s very important that we have that ability to personalize. Each brand has their own customer target, but we find ways to commonize 90 percent and get the synergies through 6, 7, 8 million vehicles that we’re going to build on only four platforms. So as you might know, we have four platforms within Stellantis, which were announced during the EV Day we had a few months ago. There’s STLA Small, STLA Medium, STLA Large, and STLA Frame. These four platforms are basically going to cover the entire world of our 12 brands.
And obviously it’s going to be up to each brand to define, okay, these are the 10 percent that I need to change. This is the core of my brand DNA. And we’ll get even more differentiation between brands, because we’ll put the money where the customer really wants and not in the core or base technology, the connectivity, autonomous drive, or the electrification. In many cases there will be 80, 90 percent commonality between a Jeep and a Ram for example, right? But the 10 percent will make a big difference in drivability, off-road capability, towing capability, and things like that
“You might have seen that a new CEO of Chrysler has just been appointed. We want Chrysler to not only survive, we want Chrysler to become as strong as its great heritage and we want Chrysler to take off again. Maybe in a different way, but it’s very clear that we have strong ambition for each of these brands.”
We launched plug-in hybrid models in Europe a little bit more than a year ago with the Renegade and the Compass. They have been a really, really strong success. Now we’re number one in Italy, which is our largest market with what we call 4xe. We don’t call it plug-in hybrid because we built the most capable Jeep with electrification. It’s not only about electrifying for compliance and better fuel economy and sustainability. It’s also because we bring to market the best Jeep, the most capable Jeep, the most fun to drive Jeep. And we can drive off-road in silence, which we believe is the ultimate fun stuff to do. The Wrangler, we launched at the beginning of this year, and we’re now number one in the US for plug-in hybrid. And we’re sold out for the rest of the year; ahead of some brands which have had hybrid systems for many years, which I’m not going to mention.
So we’re doing extremely well. And we’re launching the Grand Cherokee two-row with 4xe at the beginning of next year in the US, and then across the globe. So we believe we have something really big. Because electrification for Jeep is not just a must because we need to comply and we need to sustain. It’s much bigger than that. We believe that with the torque you can get plus the silence, that we’ll have something really huge ahead of us. And obviously the choice to use plug-in hybrid technology might be a bridge to pure electrification. We’ve announced that in 2025, we’ll have a BEV [battery electric vehicle]. So a pure electric battery electric Jeep in every SUV segment. That means we need to really work hard to get there, but we’re going to get there. We’re really ahead of the game and we want to keep that image because we think it’s a perfect match for Jeep. This is a big change compared to the Jeep of five or 10 years ago, but so far it’s really getting a lot of traction.
“think the best way to really leverage that technology is to charge it every morning, every night. And we really push hard for customers to invest in the Level 2 charger at their home, because it makes the driving experience, beyond the fuel economy itself, much better. It makes the driving experience totally different. A lot more fun, a lot smoother. And at the end of the day, they save money. Especially if they have a short commute — why not do it? You just buy these Level 2 chargers, which are very affordable now, you install them in the garage and in two hours, your car is charged 100 percent. We really push hard on this. And I would say the vast majority of the buyers do. I encourage you to look at all the groups that exist on Instagram, Facebook, etc., on social media, there are a lot of 4xe clubs now, 4xe fans, and thousands of them. We’re not talking hundreds, we are talking thousands, tens of thousands.
And these people are truly passionate about it. They’re geeks. They dismantle the systems. They want to know how it works. Some guys have driven a hundred miles — a hundred miles — by using the regen function. So they use the regen function within the best condition and everything to drive only on electric or regeneration between fuel and the battery. And they’re having fun with it. And I think part of the experience is to max the effect. If you just buy a 4xe and never charge it, I think you lose a lot of the experience. So that’s sad. You lose the sustainability part of it, which is appreciated, which should be appreciated. And second, you lose the fun-to-drive aspect that you get when you have both an ICE and an electric engine. You have a lot more power and torque, it’s a lot more fun. And Americans like power, they like torque. So why wouldn’t they do it? And it’s cheaper.
When you think about North America, it’s roughly 5 percent. In 2025, between BEV and PHEV [plug-in hybrid electric vehicle], it’s going to be around 35 to 40 percent. So obviously our challenge is to make sure that first we have educated the customer by making sure they understand exactly what the product is going to do and not do.
And as important, I would say, is the technician, the training of the technicians, of the receptionist, to find the right solutions to the problems. Because yeah, to your point, these are different technologies. I would say the plug-in hybrids do have a little bit of complexity because it has gas and electric — it’s not simple technology. So we’re putting a lot of effort into this technology and the training with our technicians in the network. The good news is the sales are usually pretty concentrated in very big metro and secondary markets. So it’s not like the entire network is selling a lot of volume of the hybrids everywhere. So we are able to really put a lot of effort in the big metro areas.
As a company, on a global level, we’re committed to sell 40 percent BEV by 2030. I think Jeep is going to be ahead of that. I think we have a product plan in the pipeline which is going to be ahead of that. I think there will be a transition. I think Europe is a little bit ahead of the game. I think China as well. So I think acceleration is faster. But I think the US is following suit very quickly, especially in the D and above segment, so the segment of the Cherokee and above, electrification is a must because of the efficiency you get through electrification. Either BEV or plug-in hybrid or hybrid.
Then on the smaller segment, I think we’ll keep some abilities to keep the more traditional hybrids for a longer period of time to keep them affordable. And I think when the cost of electrification goes down, which we expect between 2025 and 2030, I think slowly but surely a ramp up of the smaller segment to electrification will happen. To answer your question, I think in 2030 the proportion of ICE sales, the traditional ICE, is going to be much smaller, at least for Jeep in North America. And the hybrid will become a minority of sales.
Much much more here at the link: How Jeep is going electric, with CEO Christian MeunierI think the responsibility of our governments, whether it is in the US or in Europe or elsewhere, is to accelerate. Because it is one thing to put pressure on compliance, it’s another thing to make sure that everything else follows and you put the right focus to get the grid in line. I think the risk would be that the grid is not supporting all these electrification efforts. So that’s a risk. But I think it’s the responsibility of our government to do that. Obviously we’ll work with them. We’re pushing them because it has to happen quicker than it’s currently happening. And it’s also on the production of electricity.
At some point in time, we’re going to have to do something to produce more electricity to support all these needs. I’m hearing that in California there is some recommendation to use the grid at certain hours and things like that because there’s not enough to support the electric cars on the road already. So that’s a big challenge. And it has to be solved between, I would say now and 2023-2024. Because the volume of electric cars sold in the United States, in North America, in Europe, is going to be much higher. There are strong plans that are being developed but it’s going to be about execution. So the government will have a lot of pressure to deliver on that mission.Think about 8 million cars. You’re on the highway, you’re going home for your Thanksgiving family reunion, and you’ve got 50 percent of the cars on the highway going for one charging station — that’s not going to work. So we need to find a way to get that done. And we have a few years, but we don’t have that many, because we’re cranking out electric vehicles. All the manufacturers are going, but it seems that we’re a little faster than the grid. So, the grid is going to have to move, and more important than that is the electricity. We need to find the solutions to produce that electricity that we don’t have today.
Interview was with the Verge by Nilay Patel.
