Key Takeaways Stellantis will discontinue all plug-in hybrids in North America, starting with the 2026 model year.STLA is shifting toward conventional hybrids and EREVs as U.S. demand for PHEVs has weakened.Stellantis recalls and reduced federal EV incentives have added pressure to its plug-in hybrid lineup.
Stellantis (STLA Quick QuoteSTLA – Free Report) , an Italian-American automaker, has officially ended sales and production of its plug-in hybrid (PHEV) models in the United States. The move marks the end of an era for several high-end electrified vehicles, including the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe and Chrysler Pacifica PHEV.
Beginning with the 2026 model year, Stellantis will discontinue its plug-in hybrid (PHEV) programs in North America and shift its focus toward more competitive electrified solutions, including hybrid and range-extended electric vehicles (EREVs). The company believes these alternatives better align with evolving customer needs, noting that changing consumer preferences have significantly reduced demand for plug-in hybrids.
The decision is notable, given the recent success of some PHEV models. Just a few years ago, the Jeep Wrangler 4xe was the best-selling plug-in hybrid for three consecutive years. After debuting in 2021, it quickly became the benchmark for electrified off-road SUVs.
Despite the Jeep Wrangler 4xe’s success, Stellantis has now confirmed the cancellation of this flagship PHEV, along with other plug-in hybrid models across its U.S. lineup. As a result, the Jeep Grand Cherokee 4xe and Chrysler Pacifica PHEV are also being discontinued as Stellantis reshapes its North America portfolio.
The strategic shift decision reflects weaker demand for plug-in hybrids, while traditional hybrids – which do not require external charging – have gained broader acceptance among U.S buyers. The transition also comes amid wider industry and policy changes that have influenced the automaker’s electrification strategies. Recent adjustments to the U.S. federal incentives have reduced the financial appeal of certain electrified vehicles, including PHEVs.
Additionally, the discontinuation also follows a series of recalls affecting PHEV models, particularly Jeep’s 4xe variants. Stellantis recalled roughly 375,000 Jeep plug-in hybrids over concerns related to battery failures and reports of fires. While the company has not directly attributed its decision to quality and safety concerns, these issues have nevertheless placed additional pressure on the PHEV segment.
In September 2025, Stellantis announced that it has discontinued the development of Ram’s all-electric pickup, the Ram 1500 REV.
Overall, the company is repositioning its North American strategy around conventional hybrids and extended-range electric vehicles (EREVs), which offer electric driving with longer range and reduced dependence on charging infrastructure.
Zacks Rank & Key Picks
STLA stock currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Mazda Motor (MZDAY Quick QuoteMZDAY – Free Report) , Subaru Corporation (FUJHY Quick QuoteFUJHY – Free Report) and Suzuki Motor (SZKMY Quick QuoteSZKMY – Free Report) ), each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MZDAY’s fiscal 2026 and 2027 EPS has improved 3 cents and 21 cents, respectively, in the past 60 days.
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