Jeep decides to move production of its new Wagoneer S electric SUV to Mexico

Jeep is about to take a new step forward in the electrification of its range with the launch of the Jeep Wagoneer S, its first mass-production battery-powered model, which will be sold in the United States and Canada. According to a recent report, this model, which will be officially unveiled today, May 30, will ultimately be manufactured at the Toluca assembly plant in Mexico.

This move represents a considerable bet for Jeep, especially because the Wagoneer S will compete directly with the popular Tesla Model Y in the increasingly competitive mid-size SUV segment. The Wagoneer S will be the first fully electric model from Jeep aimed at the North American market, followed by electric versions of the Wagoneer, Grand Wagoneer and Grand Cherokee. With production of the Jeep Wagoneer S scheduled to begin in Mexico at the end of this year, the automaker, owned by Stellantis, hopes to offer its first electric vehicle at a competitive price, which is crucial for achieving success.

The Model Y, which last year became the best-selling car in the world, has a starting price in the United States of $44,990, not including the $7,500 tax credit, while the top-of-the-range Performance version sells for $51,490. In this way, Jeep should price the Wagoneer S in a similar range, and manufacturing it in Mexico could help achieve this thanks to lower production costs compared with the United States.

The Wagoneer S may not be as cheap as you expected

Some reports suggest, however, that the new Wagoneer S could be positioned in a somewhat more exclusive market segment, with several screens spread throughout the interior and a specification sheet superior to that of the Grand Cherokee Trackhawk with its V8 engine. Jeep has said that its new electric SUV will be able to accelerate from zero to 60 mph in 3.4 seconds, a tenth of a second faster than the Tesla Model Y Performance, thanks to a dual-motor system that will deliver around 450 kW of power and 836 Nm of torque. The American manufacturer has also announced an estimated range for this model of more than 300 miles. In other words, just over 482 km.

Jeep is not the only American automaker deciding to produce its new electric models in Mexico instead of in its home country. Ford builds the Mustang Mach-E at its Cuautitlán plant, and General Motors assembles both the Blazer EV and the Equinox EV at its Ramos Arizpe plant.