Shifting its strategy, the automaker is now prioritizing hybrids and range-extended vehicles. This move comes amid a slump in EV sales and a reduction in federal EV incentives.
Stellantis will phase out plug-in hybrid Jeep SUVs and the Chrysler Pacifica starting in 2026 due to weak demand and policy shifts.
PHEVs were once a key tool for meeting fuel-economy regulations and driving U.S. sales, but have become costly and less competitive.
Jeep will continue its all-electric SUV lineup while Stellantis focuses on hybrids and range-extended electrified vehicles.
Stellantis said on January 9 that it will discontinue its plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee, and Chrysler Pacifica in North America, citing slowing demand, quality issues, and weakened federal fuel economy requirements.
The automaker said the decision allows it to concentrate on “more competitive electrified” options, including those of hybrid and range-extended vehicles. The announcement marks a reversal for Stellantis, which has touted U.S. sales leadership for these plug-in hybrid electric vehicles (PHEVs) in recent years.
In 2024, Jeep projected selling 160,000 to 170,000 PHEVs, accounting for roughly 41% of the U.S. PHEV market. The Wrangler 4xe debuted in 2020, the Grand Cherokee followed in 2021, and Chrysler introduced its PHEV minivan in 2016.
PHEVs combine internal combustion engines (ICE) with all-electric range and have long been seen as a transitional technology between traditional vehicles and fully electric cars. While they helped Stellantis meet federal fuel-economy standards and avoid penalties, the company said the goal has become less urgent after the Trump administration weakened some of those regulations.
The discontinuation comes amid a recent recall of Jeep SUVs for a fire risk, the latest in a series of quality concerns for the vehicles. Stellantis stressed that the recall is unrelated to the decision to end the PHEV programs.
Jeep CEO Bob Broderdorf told CNBC last month that the brand is reevaluating its electrification strategy following the end of federal incentives for EVs and PHEVs last September. He said the automaker will continue selling remaining PHEV inventory while assessing steady-state demand for both 4xe and battery-electric vehicles.
Meanwhile, Stellantis will continue offering all-electric Jeep models, including the Wagoneer S and the recently revealed Recon, as it refocuses its electrification efforts on hybrids and range-extended vehicles.
