Stellantis cancels Jeep and Chrysler PHEVs amid electric vehicle slowdown, remember

Detroit – Stellantis The company is canceling Jeep hybrid electric SUVs and Chrysler minivans amid sluggish electric vehicle sales, quality issues and weak federal fuel economy requirements.

The automaker said Friday that the decision to end production of the Jeep Wrangler Hybrid, Jeep Grand Cherokee and Chrysler Pacifica was a result of declining customer demand and the need to focus on “more competitive electric solutions, including hybrid and range-extended vehicles.”

“Stellantis is constantly evaluating its product strategy to meet evolving customer needs and regulatory requirements. As customer demand shifts, Stellantis will phase out its plug-in hybrid (PHEV) programs in North America beginning with the 2026 model year,” the company said in an email statement.

The decision marks a sea change for the automaker, which has touted its U.S. sales leadership for models, known as PHEVs, for years. In 2024, then-Jeep CEO Antonio Velosa — who is now CEO of Stellantis — said the SUV brand plans to sell 160,000 to 170,000 PHEVs that year, which the company said would account for 41% of plug-in hybrid electric vehicle (PHEV) sales in the United States.

Aside from sales, Stellantis is using plug-in hybrid electric vehicles (PHEV) as a way to offset production of its gas-guzzling trucks and SUVs to try to meet federal fuel economy standards and avoid penalties. The goal became less urgent when the Trump administration eliminated or weakened aspects of those rules.

Chrysler debuted the PHEV minivan in 2016. Jeep debuted the Wrangler PHEV, which it calls the “4xe,” in 2020, followed by a Grand Cherokee version in 2021.

Plug-in hybrid electric vehicles (PHEV) have traditional internal combustion engines, but also have an all-electric range when charged like an electric car. It has been largely viewed as a transitional technology from conventional vehicles to electric vehicles; However, it is very expensive due to the two different payment systems.

The cancellation also comes amid a recall of Jeep SUVs due to a fire hazard – the latest in a series of issues facing the vehicles. The company is also re-evaluating its product portfolio as part of its US turnaround strategy.

The company said the recall, which included stopping sales of the vehicles, was “in no way related” to the cancellation of the vehicles.

Jeep CEO Bob Bruderdorff told CNBC late last month that the brand has been evaluating its electrification strategy since the end of up to $7,500 federal incentives for electric vehicles and plug-in hybrid electric vehicles (PHEV) in September.

He said Jeep still has vehicles on the ground and will continue to sell them, but “we’re all waiting to see what the demand is, how it’s going to continue to shake out, and what’s going to become a steady state for 4xe and 4xe vehicles.” [battery] Electric vehicles in general.”

A Jeep spokeswoman said the brand will continue to offer all-electric SUVs like the Wagoneer S and Recon, which were officially unveiled late last year.