Stellantis scraps Jeep, Chrysler PHEVs amid EV slowdown, recall

DETROIT – Stellantis is scrapping its plug-in hybrid electric Jeep SUVs and Chrysler minivan amid slowing EV sales, quality issues and weakened federal fuel economy requirements.

The automaker on Friday said the decision to end production of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee and Chrysler Pacifica was a result of waning customer demand and the need to focus on “more competitive electrified solutions, including hybrid and range‑extended vehicles.”

“Stellantis continually evaluates its product strategy to meet evolving customer needs and regulatory requirements. With customer demand shifting, Stellantis will phase out plug‑in hybrid (PHEV) programs in North America beginning with the 2026 model year,” the company said in an emailed statement.

The decision is an about-face for the automaker, which has touted its U.S. sales leadership of the models, known as PHEVs, for years. In 2024, then-Jeep CEO Antonio Filosa — who is now CEO of Stellantis — said the SUV brand planned to sell 160,000 to 170,000 PHEVs that year, and the company said it represented 41% of U.S. PHEV sales.

Aside from sales, Stellantis has been using PHEVs as a way to offset its production of gas-guzzling trucks and SUVs to attempt to meet federal fuel economy standards and avoid penalties. The goal has become less urgent been as the Trump administration eliminates or weakens aspects of those rules.

Chrysler first introduced its PHEV minivan in 2016. Jeep debuted the Wrangler PHEV, which it called a “4xe,” in 2020, followed by a Grand Cherokee version in 2021.

PHEVs feature traditional internal combustion engines, but also have an all-electric range when charged like an EV. They have largely been viewed as a transitional technology from traditional vehicles to EVs; however, they are quite costly because of their two different propulsion systems.

The cancellation also comes amid a recall of the Jeep SUVs due to fire risk – the latest in a string of issues for the vehicles. The company is also reevaluating its product portfolio as part of its U.S. turnaround strategy.

The company said the recall, which included a stop-sale of the vehicles, “is in no way related” to the cancellation of the vehicles.

Jeep CEO Bob Broderdorf late last month told CNBC the brand was evaluating its electrification strategy since the end of up to $7,500 in federal incentives for EVs and PHEVs in September.

He said Jeep still had vehicles on the ground that it would continue to sell, but “all of us are waiting to see what the demand is, how it’s going to continue to shake out, and what becomes steady state for 4xe and [battery] EVs in general.”

A Jeep spokeswoman said the brand will continue to offer all-electric SUVs such as the Wagoneer S and Recon, which was officially revealed late last year.