Stellantis scraps Jeep, Chrysler PHEVs amid EV slowdown, recall

DETROIT — Stellantis is scrapping its plug-in hybrid electric Jeep SUVs and Chrysler minivan due to slowing EV sales, quality issues and weakening federal fuel economy requirements.

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

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

The decision marks a turning point for the automaker, which has touted its U.S. sales leadership in models for years. Then-Jeep CEO Antonio Filosa, who is now CEO of Stellantis, said in 2024 that the SUV brand plans to sell 160,000 to 170,000 PHEVs that year, and that the company He said he represented 41% of US PHEV sales.

Beyond sales, Stellantis is using PHEVs as a way to offset production of gas-guzzling trucks and SUVs to meet federal fuel economy standards and avoid fines. As the Trump administration eliminated or weakened aspects of these rules, the urgency of the goal diminished.

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

PHEVs have traditional internal combustion engines but also have an all-electric range when charged like an EV. These are largely seen as a transitional technology from conventional vehicles to electric vehicles; However, they are quite costly due to two different drive systems.

The cancellation also comes amid a recall of Jeep SUVs due to fire risk; This was the latest in a series of problems with the vehicles. The company is also re-evaluating its product portfolio as part of its recovery strategy in the US.

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

Jeep CEO Bob Broderdorf told CNBC late last month that the brand has been evaluating its electrification strategy since federal incentives of up to $7,500 for electric vehicles and PHEVs expired in September.

He said Jeep still has vehicles it will continue to sell, but added “we’re all waiting to see what the demand is, how it continues to shake out, and what the steady state is going to be for the 4xe and the 4xe.” [battery] EVs in general.”

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