Jeep Dealers Fear Australian Exit

Dealerships have begun seeking legal advice on the belief Jeep may be positioning itself to exit the Australian market.

According to a report from Carsales, several Jeep dealers have banded together and contacted Evan Stents from firm HWL Ebsworth – the same lawyer who represented dealers following General Motors’ decision to shut down Holden.

In an email obtained by Carsales, Jeep dealers believe the brand’s parent company – Stellantis Australia (formerly Fiat Chrysler Australia), which looks after the importation and distribution of the brand – has been making decisions to deliberately slow sales of Jeep products locally.

They allege the strategy is designed to force dealers to hand back their Jeep franchises, saving Stellantis Australia potentially millions of dollars in exit fees from cancelled contracts.

Jeep sales in Australia have dropped by more than 92 per cent over a 10-year period – from a high of 30,408 vehicles sold in 2014 to just 2377 in 2024.

In 2014, the cheapest four-door Jeep Wrangler cost $37,000 before on-road costs, whereas the cheapest Wrangler on sale today costs $75,950 before on-road costs – more than twice as much.

Based on Australia’s annual inflation rate, the price of the 2014 Jeep Wrangler is equivalent to $48,371 today.

The report claims the number of Jeep dealerships has also reduced, from more than 70 to 44 today.

"The Jeep brand remains fully committed to the Australian market and Stellantis continues to invest heavily in its global product portfolio," a spokesperson for Stellantis Australia told CarSauce.

But while some dealers remain convinced the plummeting sales figures have been intentional, Stellantis Australia recently revived its iconic ‘I bought a Jeep’ advertising campaign – reinvented for the launch of the electric Jeep Avenger SUV in late 2024.

The budget for a television commercial typically costs hundreds of thousands of dollars – sometimes running into the millions – before any airtime has been purchased with networks.

“I can confirm that I have been retained by National Chrysler Jeep Dodge Dealer Council Inc to review the franchise arrangements of Jeep dealers in Australia,” Mr Stents told CarSauce, but declined to comment further.