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Stellantis scraps Jeep, Chrysler plug-in hybrid vehicles amid EV slowdown, recall
CNBC· 2026-01-09 17:46
Core Viewpoint - Stellantis is discontinuing its plug-in hybrid electric Jeep SUVs and Chrysler minivan due to declining EV sales, quality issues, and changes in federal fuel economy standards [1][2]. Group 1: Production Decision - The decision to end production of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee, and Chrysler Pacifica is driven by decreasing customer demand and a strategic shift towards more competitive electrified solutions [2]. - Stellantis plans to phase out plug-in hybrid programs in North America starting with the 2026 model year [2]. Group 2: Market Context - This move marks a significant change for Stellantis, which previously highlighted its leadership in U.S. PHEV sales, aiming to sell 160,000 to 170,000 PHEVs in 2024, representing 41% of U.S. PHEV sales [3]. - The company has utilized PHEVs to balance its production of traditional gas-powered vehicles to comply with federal fuel economy standards, which have become less stringent under the current administration [5]. Group 3: Product Features and Challenges - PHEVs combine traditional internal combustion engines with an all-electric range, but are considered costly due to their dual propulsion systems [6]. - The cancellation of these models coincides with a recall of Jeep SUVs due to fire risks, highlighting ongoing quality concerns [7]. Group 4: Future Strategy - Jeep is reassessing its electrification strategy following the expiration of federal incentives for EVs and PHEVs [8]. - The brand will continue to offer all-electric SUVs, such as the Wagoneer S and Recon, which were revealed recently [9].