Stellantis NV's recovery efforts are being tested by sluggish sales of the Jeep Cherokee hybrid, even as the company's Ram brand posts strong gains in the first quarter.
Jeep deliveries rose just 3% in Q1, while Ram sales jumped 20%, powered by the return of the popular Hemi V-8 engine. The modest Jeep performance comes despite a redesign of the top-selling Grand Cherokee SUV, a more affordable Grand Wagoneer and the launch of the compact Cherokee as a hybrid after a three-year absence.
CEO Antonio Filosa, who took the helm in June 2025, has focused on Jeep and Ram to revive the company. He returned Stellantis to profitability in Q1 and reignited US sales growth.
The new hybrid Cherokee enters a crowded compact SUV segment tailored to cost-conscious buyers. Stellantis sold about 4,500 Cherokees through April, gaining under 1% segment share. Dealers say sales haven't picked up in May.
Elevated interest rates, tariffs and soaring gas prices have made recovery challenging. Filosa had to reassure investors after disappointing margins sent the stock down last month. He will present his vision on Thursday in Auburn Hills, Michigan.
Jeep CEO Bob Broderdorf says it's too early to judge the Cherokee's performance. He trimmed $60 from the lease payment offer in May.
The company cites production bottlenecks limiting early volumes. Dealers say current incentives are insufficient to compete with rivals like the Toyota RAV4 and Honda CR-V.
