Stellantis announced that it will discontinue the plug‑in hybrid (PHEV) versions of the Jeep Wrangler, Jeep Grand Cherokee and Chrysler Pacifica in the United States, with the phase‑out beginning in the 2026 model year. The decision follows a slowdown in electric‑vehicle sales and a shift in the company’s North American electrification strategy.
The move comes after the Jeep 4xe line, which had been the best‑selling PHEV for three consecutive years, saw declining demand as federal EV tax credits expired and consumer preference shifted toward simpler powertrains. Recalls related to fire risks and battery issues added cost and quality headwinds that weighed on the PHEV portfolio.
Stellantis said it will concentrate on hybrids and range‑extended electric vehicles, which it views as offering a better balance of efficiency, range and customer appeal in the current market. The company also highlighted its $13 billion investment over four years to grow its U.S. electrification footprint, including new hybrid and fully electric models slated for 2026.
The announcement triggered a modest negative reaction from investors, with the stock falling about 2 % in the day after the news, reflecting concerns that the shift signals a reduced electrification bet amid a weak market for electrified vehicles.
Management emphasized that the decision is part of a broader strategy to streamline the product mix and reduce complexity. “With customer demand shifting, we are phasing out plug‑in hybrid programs in North America beginning with the 2026 model year, and focusing on more competitive electrified solutions,” said a Stellantis spokesperson. The company also noted that the change reinforces its commitment to offering advanced propulsion systems that maximize efficiency across the range.
Analysts noted that the discontinuation may improve margins by eliminating costly recall liabilities and reducing inventory of aging PHEV components, while the company’s focus on hybrids and range‑extended EVs positions it to capture growing demand for low‑emission vehicles that still offer the flexibility of a gasoline engine.
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