Stellantis vows to end slump with Jeep's Avenger, first-ever EV

Industry

Published: 01 Apr. 2024, 15:52

Stellantis vows to end slump with Jeep's Avenger, first-ever EV

Bang Sil, the new head of Stellantis Korea, speaks about her strategies for Jeep and Peugeot during a press conference in northern Seoul on Monday. [STELLANTIS KOREA]

Stellantis aims to overcome a lingering sales slump in Korea by bringing Jeep’s first-ever pure EV, the Avenger, to the local market in the second half of the year.

Peugeot's mild hybrid version of the 308 will also hit the market within the year.

“The Avenger SUV and hybrid Peugeot 308 have good odds in the domestic market as sales of SUVs rose 9 percent on year in Korea last year, while sales of hybrid cars increased by 21 percent," Bang Sil, the new managing director of Stellantis Korea, said during a press conference in northern Seoul.

“Stellantis Korea will focus on restoring customer confidence in our brand through efforts at price stabilization.”

Jeep and Peugeot vehicles are displayed in northern Seoul on Monday. [STELLANTIS KOREA]

Bang, appointed on Feb. 1, is both the first female and first Korean managing director to lead Stellantis Korea since it began its Korean operation in 2021. She is a marketing veteran who previously worked at Renault Korea Motors and Volkswagen Korea.

“Fluctuating prices triggered by intensive discount competition make customers hesitant to buy vehicles,” Bang said. “Stellantis Korea will seek consistent price policies and avoid intense promotion competition among dealers."

Stellantis Korea will open two new exhibition centers in Korea this year to bring the total to 24, as well as a service center for a total of 23.

"Customer taste is diversifying and I believe the uniqueness of Jeep and Peugeot will quench the thirst of their demand," Bang said.

Bang also hinted at bringing in other auto brands under Stellantis to Korea such as Fiat and Citroen, though she added that “details have been under discussion.”

Stellantis currently sells three brands in the Korean market: Jeep, Peugeot and DS.

Bang’s plan comes as the auto company struggles with declining sales in Korea. A total of 4,512 Jeep vehicles were sold in Korea last year, down 37 percent on year. Peugeot sold 2,026 units while DS sold just 153, according to data from the Korea Automobile Importers & Distributors Association.

Stellantis in October of last year offered voluntary resignation packages to salaried employees in Korea amid sales slump, though it declined to confirm the specific number of planned job reductions. Earlier, the company had offered voluntary buyouts to 33,500 U.S. employees, citing plans to streamline operations.

BY SARAH CHEA [chea.sarah@joongang.co.kr]