Stellantis scrapped its plug-in hybrid Jeep SUVs and Chrysler minivans amid slowing EV sales, quality issues, and weakened federal fuel economy requirements.
The automaker announced on Friday that it will end production of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee, and Chrysler Pacifica. This decision was made due to waning customer demand and the need to focus on “more competitive electrified solutions, including hybrid and range-extended vehicles.”
“Stellantis continually evaluates its product strategy to meet evolving customer needs and regulatory requirements. With customer demand shifting, Stellantis will phase out plug-in hybrid (PHEV) programs in North America beginning with the 2026 model year,” the company said in an emailed statement.
Stellantis’ Shift in Strategy
This move marks a significant shift for the company, which had previously touted its U.S. sales leadership of the models for years. In 2024, then-Jeep CEO Antonio Filosa, who is now the CEO of Stellantis, stated that Jeep planned to sell 160,000 to 170,000 PHEVs that year. The company noted that this figure represented 41% of U.S. PHEV sales.
Aside from sales, Stellantis had been using PHEVs to offset its production of gas-guzzling trucks and SUVs in an effort to meet federal fuel economy standards and avoid penalties. However, with the Trump administration eliminating or weakening aspects of these rules, the need to produce PHEVs has diminished.
Read Also
California Billionaire Tax: Impacts and Analysis
Migrant Trucker Licenses: A New California Initiative
Berkshire Loses Its Best: Market Reaction
Challenges with PHEVs and Recalls
Chrysler first introduced its PHEV minivan in 2016, while Jeep debuted the Wrangler PHEV, branded as the “4xe,” in 2020. A Grand Cherokee version followed in 2021. These PHEVs feature traditional internal combustion engines but also have an all-electric range when charged, like an EV. However, they are costly due to their dual propulsion systems.
The decision also comes amid a recall of the Jeep SUVs due to fire risk, which is the latest in a series of issues for the vehicles. Stellantis has made it clear that the recall, which included a stop-sale of the vehicles, is not related to the decision to cancel the vehicles.
Jeep CEO Bob Broderdorf recently told CNBC that the brand is reevaluating its electrification strategy after the end of up to $7,500 in federal incentives for EVs and PHEVs in September. He added that Jeep still has vehicles on the ground for sale but is “waiting to see what the demand is and how it will continue to shake out.”
The Future of Jeep’s Electrification
Despite the cancellation of some PHEV models, a Jeep spokeswoman confirmed that the brand will continue offering all-electric SUVs, including the Wagoneer S and the Recon, which was officially revealed late last year. This reflects the company’s commitment to electrifying its portfolio, even as it shifts away from plug-in hybrids.
