Stellantis scraps Jeep, Chrysler PHEVs amid EV slowdown, recall

Stellantis Shifts Gears: Discontinuing Plug-in Hybrid Jeep SUVs and Chrysler Minivan

In a significant move, Stellantis has announced the discontinuation of its plug-in hybrid electric Jeep SUVs and Chrysler minivan. This decision comes as the company faces slowing EV sales, quality issues, and weakened federal fuel economy requirements. The affected models include the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee, and Chrysler Pacifica.

The automaker cited waning customer demand and the need to focus on more competitive electrified solutions, including hybrid and range-extended vehicles, as the primary reasons for this decision. Stellantis continually evaluates its product strategy to meet evolving customer needs and regulatory requirements, and with customer demand shifting, the company will phase out plug-in hybrid programs in North America beginning with the 2026 model year.

Background and Context

Stellantis has been a leader in the US sales of plug-in hybrid electric vehicles, with the Jeep brand planning to sell 160,000 to 170,000 PHEVs in 2024. However, the company has faced challenges, including quality issues and recalls, such as the recent recall of Jeep SUVs due to fire risk. The cancellation of these models also comes amid a reevaluation of the company’s product portfolio as part of its US turnaround strategy.

Plug-in hybrid electric vehicles, which feature traditional internal combustion engines and an all-electric range when charged, have been seen as a transitional technology from traditional vehicles to EVs. However, they are costly due to their dual propulsion systems. The company’s decision to discontinue these models may indicate a shift towards more competitive and cost-effective electrified solutions.

Future Plans and Implications

Despite the discontinuation of plug-in hybrid models, Jeep will continue to offer all-electric SUVs, such as the Wagoneer S and Recon. The company’s CEO, Bob Broderdorf, has stated that Jeep is evaluating its electrification strategy, particularly in light of the end of federal incentives for EVs and PHEVs. The brand will continue to sell existing vehicles, but the demand for these models remains uncertain.

The cancellation of these models may have implications for the company’s ability to meet federal fuel economy standards, which have been weakened under the current administration. However, Stellantis will likely focus on developing more competitive and efficient electrified solutions to meet evolving customer needs and regulatory requirements.