Stellantis scraps Jeep, Chrysler PHEVs amid EV slowdown, recall

DETROIT — Stellantis is scrapping its plug-in hybrid electrical Jeep SUVs and Chrysler minivan amid slowing EV gross sales, high quality points and weakened federal gas financial system necessities.

The automaker on Friday mentioned the choice to finish manufacturing of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee and Chrysler Pacifica was a results of waning buyer demand and the necessity to deal with “extra aggressive electrified options, together with hybrid and vary‑prolonged autos.“

“Stellantis regularly evaluates its product technique to fulfill evolving buyer wants and regulatory necessities. With buyer demand shifting, Stellantis will part out plug‑in hybrid (PHEV) packages in North America starting with the 2026 mannequin yr,” the corporate mentioned in an emailed assertion.

The choice is an about-face for the automaker, which has touted its U.S. gross sales management of the fashions for years. In 2024, then-Jeep CEO Antonio Filosa — who’s now CEO of Stellantis — mentioned the SUV model deliberate to promote 160,000 to 170,000 PHEVs that yr, and the corporate mentioned it represented 41% of U.S. PHEV gross sales.

Apart from gross sales, Stellantis has been utilizing PHEVs as a technique to offset its manufacturing of gas-guzzling vehicles and SUVs to try to fulfill federal gas financial system requirements and keep away from penalties. The purpose has turn into much less pressing because the Trump administration eliminates or weakens facets of these guidelines.

Chrysler first launched its PHEV minivan in 2016. Jeep debuted the Wrangler PHEV, which it known as a “4xe,” in 2020, adopted by a Grand Cherokee model in 2021.

PHEVs function conventional inside combustion engines, but in addition have an all-electric vary when charged like an EV. They’ve largely been seen as a transitional know-how from conventional autos to EVs; nonetheless, they’re fairly pricey due to their two totally different propulsion programs.

The cancellation additionally comes amid a recall of the Jeep SUVs because of fireplace threat — the most recent in a string of points for the autos. The corporate can also be reevaluating its product portfolio as a part of its U.S. turnaround technique.

The corporate mentioned the recall, which included a stop-sale of the autos, “is under no circumstances associated” to the cancellation of the autos.

Jeep CEO Bob Broderdorf late final month instructed CNBC the model was evaluating its electrification technique for the reason that finish of as much as $7,500 in federal incentives for EVs and PHEVs in September.

He mentioned Jeep nonetheless had autos on the bottom that it could proceed to promote, however “all of us are ready to see what the demand is, how it is going to proceed to shake out, and what turns into regular state for 4xe and [battery] EVs generally.”

A Jeep spokeswoman mentioned the model will proceed to supply all-electric SUVs equivalent to the Wagoneer S and Recon, which was formally revealed late final yr.