Camp Jeep Outdoor Terrain at New York International Auto Show on April 16, 2025.
Daniel DeVries | CNBC
Detroit — Stellantis will discontinue its plug-in hybrid electric Jeep SUV and Chrysler minivan due to weak EV sales, quality issues and weakening federal fuel efficiency regulations.
The company said Friday that its decision to end production of the Jeep Wrangler, Jeep Grand Cherokee and Chrysler Pacifica plug-in hybrids is the result of declining customer demand and the need to focus on “more competitive electric solutions, including hybrid and extended range vehicles.”
“Stellantis continually evaluates its product strategy to meet evolving customer needs and regulatory requirements. Due to changing customer demands, Stellantis plans to phase out its plug-in hybrid (PHEV) program in North America starting with the 2026 model year,” the company said in an emailed statement.
The decision marks a turning point for the automaker, which has long boasted leadership in U.S. sales of its models. Antonio Filosa, then CEO of Jeep and now CEO of Stellantis, said in 2024 that the SUV brand plans to sell 160,000 to 170,000 PHEVs in that year, which the company said would account for 41% of U.S. PHEV sales.
Apart from 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. This goal has become less urgent as the Trump administration has repealed or weakened some of these rules.
Chrysler introduced its first PHEV minivan in 2016. Jeep debuted a Wrangler PHEV called the 4xe in 2020, followed by a Grand Cherokee version in 2021.
PHEVs have a traditional internal combustion engine, but like EVs, they can also be charged to run fully electric. These have primarily been considered as transition technologies from conventional vehicles to EVs. However, it is very expensive because it has two different propulsion systems.
The cancellation also comes amid a recall of Jeep SUVs due to fire hazards, the latest in a series of issues with the vehicles. The company is also reevaluating its product portfolio as part of its U.S. turnaround strategy.
2022 Jeep Grand Cherokee.
jeep
The company said the recall, which includes discontinuing the sale of vehicles, is “completely unrelated” 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 EVs and PHEVs ended in September.
He said Jeep still has vehicles on the ground that it will continue to sell, but “we’re all waiting to see what the demand is, how the demand is going to go, and what the steady state is for 4xe and (battery) EVs in general.”
A Jeep spokesperson said the brand will continue to offer all-electric SUVs such as the Wagoneer S and Recon, which were officially announced late last year.
