Stellantis will end production of Jeep and Chrysler plug-in hybrid electric vehicles (PHEVs) for the US market beginning with the 2026 model year. The decision concludes production of the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe and Chrysler Pacifica PHEV after the 2025 model year and reflects a recalibration of the company’s electrification strategy in North America.
In a statement, Stellantis said it “continuously evaluates its product strategy to meet changing customer needs and regulatory requirements” and will phase out PHEV programs in the region to prioritize conventional hybrid systems, extended-range electric vehicles and battery electric platforms. The company cited evolving demand patterns and regulatory conditions as key factors behind the portfolio review.
Market conditions in the United States also influenced the decision. The PHEV exit follows a period of weaker battery-electric and plug-in hybrid sales, the expiration of federal incentives for EVs and PHEVs, and temporary sales suspensions related to recall campaigns affecting Jeep PHEV models. EV sales fell by roughly 40% in November after the US$7,500 federal tax credit expired in September 2025, ending a 15-year policy support mechanism.
The shift marks a departure from a strategy that had been central to Jeep’s electrification push. The Wrangler 4xe became the best-selling PHEV in the United States, and in 2024 Stellantis reported that Jeep and Chrysler models accounted for more than 40% of national PHEV sales. The company emphasized that the move does not represent a retreat from electrification, but rather a “redefinition of technological priorities” focused on competitive propulsion solutions across internal combustion, hybrid and electric architectures.
Stellantis confirmed that extended-range electric vehicles planned for future platforms will continue as scheduled, including models based on new architectures the company considers well-suited to the US market.
The strategic shift coincides with production updates in Mexico. Stellantis’ Toluca plant has begun building pre-series units of the Jeep Recon 2026, a battery-electric SUV designed for off-road use, and the Jeep Cherokee 2026, a hybrid SUV. In December, the plant produced 47 pre-series vehicles—25 Cherokee hybrids and 22 Recon EVs. According to Cluster Industrial Media analysis, both models are expected to enter mass production in the first quarter of 2026. Under conservative projections, the Cherokee hybrid could achieve annual US sales of between 35,000 and 50,000 units, underscoring continued demand for hybrid vehicles within the broader electrification landscape.
The transformation of the Toluca facility follows a US$1.6 billion investment announced in August 2024 to enable hybrid and electric vehicle production on the STLA Large platform. The investment modernized the plant and further integrated Mexico into Stellantis’ global electrification supply chain through new production programs and supplier coordination.
Stellantis’strategic reset comes amid a broader slowdown in electrification across the industry. Regulatory rollbacks have eased emissions and fuel-efficiency enforcement, prompting automakers to reassess capital allocation. Ford, General Motors and Stellantis have all tempered EV ambitions in favor of hybrids and internal combustion offerings. Ford’s US$19.5 billion write-down marked one of the largest EV corrections to date, which analysts have described as a necessary reset to restore profitability.
