Stellantis Halts Jeep & Chrysler PHEV Production

Stellantis Axes Plug-In Hybrid Jeep, Chrysler Models

DETROIT – Stellantis is discontinuing plug-in hybrid electric versions of the Jeep Wrangler, Jeep Grand Cherokee, and Chrysler Pacifica, citing slowing electric vehicle sales, quality concerns, and⁤ changes⁣ to federal fuel economy standards. The automaker announced the decision Friday, stating it will rather concentrate​ on hybrid and range-extended vehicle options.

“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 a statement.

This move represents a critically important shift for Stellantis, which had previously invested heavily in plug-in hybrid technology. In June 2024, Jeep touted the success of its 4xe plug-in hybrid SUVs, reporting strong sales figures. CNBC⁤ reported at the time that the Wrangler 4xe was a key driver of the brand’s electrification strategy.

Several factors contributed to ‌the decision.Demand for ‍plug-in hybrids has softened in recent months⁢ as fully electric vehicles become more ‌prevalent and consumer preferences evolve. Additionally, Stellantis has faced quality issues with some of its PHEV models.

The change also comes as ‍the ‌federal⁢ government has recently weakened proposed fuel economy requirements, reducing the incentive for automakers to invest in PHEV technology.Sources say the revised‍ regulations provided Stellantis with ​more ⁤flexibility in its ‌electrification plans.

Stellantis plans to⁤ focus on developing more competitive electrified ⁤solutions, including traditional hybrid vehicles and range-extended EVs, which combine a gasoline engine with an electric ‌motor ​and a larger battery pack.

Danielle devries | CNBC