Jeep’s Premium Pricing Impact on Wrangler and Gladiator Sales

Discover why Jeep’s premium pricing strategy is affecting sales of the Wrangler and Gladiator, with steep costs for automatic transmissions.

Jeep has launched updated versions of its Wrangler and Gladiator models, but they’re facing resistance from consumers due to their high prices. In the second quarter, Wrangler sales dropped by 17%, while Gladiator sales saw a steeper decline of 24%.

One reason behind this could be Jeep’s insistence on premium pricing, particularly evident in their automatic transmission options. For instance, opting for an eight-speed gearbox in the Wrangler requires an additional $4,500—an amount often referred to as a ’Jeep tax’.

To illustrate, a brand-new eight-speed automatic transmission from Mopar, complete with torque converter, is available for $3,611.20 during a current sale, making it $888.80 cheaper than Jeep’s factory option.

However, choosing the automatic transmission from Jeep does come with extra perks like adaptive cruise control and selec-speed control, a feature akin to off-road cruise control.

Fortunately, the price hike isn’t as steep for the Gladiator. In this mid-size truck, the eight-speed transmission is a $2,500 upgrade, which includes similar additional features such as adaptive cruise control and selec-speed control.

To put this into perspective, Ford charges just $1,495 for a ten-speed automatic transmission in the Bronco—$3,005 less than Jeep’s equivalent for the Wrangler. This significant price difference could allow consumers to invest in other options or accessories for their vehicle.