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Jeep CEO promises changes but is committed to Toledo

Posted By: Toledo Blade on August 2, 2025.  For more information, please click here to read the source article.

Some Jeep executives would probably rather forget 2024.

It was not a great year for Toledo-made Jeeps. Wrangler sales declined by 5,414 units, or 3 percent, compared to 2023. And that was a small decline compared to the precipitous drop of 24 percent, or 13,065 vehicles, in Gladiator sales.

The Gladiator’s anemic sales led some analysts to question whether the model would be continued.

But despite the disappointing year just passed, Jeep CEO Bob Broderdorf was unambiguous Saturday morning about Jeep’s future in Toledo.

“There is zero thought of moving things out of Toledo,” he said. “This is the home of the Jeep. There’s so much history here. There’s absolutely no reason to go anywhere else. The only thing in store for Toledo is to maintain what we have. This will be a cornerstone of our business.”

A return to consistency

Mr. Broderdorf used the word “consistency” a number of times during an interview Saturday with The Blade. That emphasis should be welcome news to those who recall the last year or two at Jeep and its parent company, Stellantis.

Turmoil in corporate management’s upper levels reached its apex in 2024. Carlos Tavares, who had headed Stellantis since 2021, left the company in December under a barrage of criticism for his pricing policies, his compensation package, Stellantis’ declining profitability and market share, and the company’s imperious attitude toward its dealers.

Stellantis’ net profits plummeted 70 percent in 2024, and its stock value fell by over 50 percent from a peak early in the year.

As sales declined, Stellantis dealers revolted and their frustration spilled out into the open. Kevin Farrish, chairman of the Stellantis National Dealer Council, sent a furious letter to Mr. Tavares that called Stellantis a disaster and castigating him for “reckless short-term decision-making” and “the rapid degradation of our iconic American brands.”

As John Elkann, Mr. Tavares’ interim successor, admitted, “2024 is not a year we are proud of.”

But since then, much has changed in the executive suites of both Jeep and Stellantis. Mr. Broderdorf, a Michigan native, assumed the Jeep brand’s leadership Feb. 5, followed May 28 by Antonio Filosa becoming Stellantis’ chief executive officer.

Mr. Filosa had previously been the Jeep brand’s CEO. Mike Koval, formerly the RAM brand’s head, was promoted to the role of senior vice president and head of sales operations for Jeep.

Despite last year’s turmoil, Mr. Broderdorf pushed back slightly on the notion that it was a terrible year for Jeep sales.

“The overarching sales number as a whole is what most people gravitate to,” the Jeep CEO said. “What I would point out is, are we selling in a healthier way? For instance, if you break down our sales and show retail sales to customers, we’re up significantly.

“Most of the drop is actually fleet — selling cars to rental car companies,” he continued. “Those are very low-margin cars. That isn’t necessarily a proper representation of the brand. My focus is selling cars to customers, first and foremost.”

Mr. Broderdorf also believes that the company’s decision to cut entry-level vehicles was a significant cause of last year’s sales slide. Stellantis plans to invest $3.2 billion in Jeep, he said, and customers will begin to see new or refreshed products in the next couple of months.

He conceded that none of those new or refreshed products will be Wranglers or Gladiators, but added that the company has big plans for those vehicles a little farther down the road.

With new leadership in place at Jeep, Mr. Broderdorf is already making changes changes in the way the brand is run.

One symbolic change was Mr. Broderdorf’s arrival in town Saturday for Toledo Jeep Fest.

According to Bruce Baumhower, the recently retired president of United Auto Workers Local 12, Mr. Broderdorf is the first top-ranking Stellantis executive to visit the festival. Mr. Broderdorf and Mr. Baumhower were named as grand marshals of the festival’s parade of Jeeps.

Improving dealer relations

Jeep dealers are reported to be cautiously optimistic about the company’s new leadership.

“I’ve talked with dealers who have come from the dealer meetings and said they heard things they like,” said Zach Doran, the president of the Ohio Automobile Dealers Association. “That’s the start, but the execution is the key part now. The dealers are optimistic that a lot of the people who are returning to Stellantis are coming back to help.

“I’ve seen dealers who’ve bought Chrysler Dodge Jeep RAM stores because they think the brand is on the upswing,” Mr. Doran said. “Stellantis is addressing price point concerns and not losing touch with consumers.”

Mr. Broderdorf stressed the importance of the dealer network, which he described as “personal” because that’s where he spent the first half of his career.

“What dealers want more than anything is consistency and appreciation for the throughput they need to achieve,” he said. “Once you understand those two things, it’s really just about are we communicating up front, do they understand the strategies they need to run regarding their sales, and do they have the product that is competitive in all segments and covers the expenses of their store.”

He also said that many of the people now running Stellantis have backgrounds in dealer relations.

“The noise has calmed down substantially,” he said.

The mood of the dealerships is important to Stellantis because it is they, not the consumers, who are the company’s actual customers. If dealerships have to pay interest on their unsold inventory for a long period of time, they lose money and confidence in the manufacturer.

Mr. Doran believes that in addition to improving its relationship with its dealers, the company should return its focus to its customer base.

“At its core, the Jeep is an affordable military vehicle for the average American who wants to buy a product they associate with America,” he said. “That’s the core customer and that’s who they need to be in touch with. Those are the kinds of things the dealer network is telling Stellantis.”

Pricing is a hot-button topic

The company’s sagging financials last year hit Toledo autoworkers hard in the wallet. Stellantis’ domestic UAW members received only $3,780 on average in profit sharing for 2024. In contrast, GM’s unionized employees received $14,500 and Ford workers got $10,208.

Jeep’s loyal customer base took a financial hit as well. In 2021, for the first time, the average transaction price for a Jeep sale exceeded the industry average.

Since then, the gap between Jeep prices and those of other brands has only grown, to the point where in 2024, the average Jeep vehicle cost $54,811 — about $6,600 more than the average industry-wide purchase price. That average, however, was pushed up by Jeep’s high-end vehicles, such as the Grand Wagoneer.

“Pricing, honestly, is a hot-button topic for me,” Mr. Broderdorf said. “A lot of damage that was done in the past has been erased just in the last six months. I would encourage any customer who was shopping for a Jeep a year ago, nine months ago, to come back and see how aggressive our pricing is.”

One way Mr. Broderdorf plans to bring prices down is to stop what he called “holding content hostage.” By that, he means forcing customers who only want one particular element added to their vehicle — say, steel bumpers — to buy an entire expensive options package.

“If they only want the bumpers, let them have it,” he said. “That policy was put in to decrease complexity at the plant, but it went too far,” he said, stating that in the coming years, customers would have more opportunities to customize their Jeeps with the goodies they want at the price they deserve.

On the question of whether Stellantis would support the re-establishment of a Jeep museum in Toledo, Mr. Broderdorf said that he’s seen a lot of energy around the topic but was cautious about making any financial commitment.

“I love the concept of it. It’s obviously something I need to get closer to,” he said. “For me, my first priority is to get Jeep healthy. We’re knocking out the list one by one. There’s probably a time and place to slow down and see if that’s the right investment.”

He added that he would like to see the latest proposals for what could be done.

Though Mr. Broderdorf has been to a lot of Jeep events, he gave Toledo Jeep Fest high marks.

“I have enjoyed this so much today,” he said. “The passion from the people who drive our products and the people who build them every single day and then come out to celebrate that the cars they build — it’s a cool thing.”