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Stellantis Eliminates Plug-in Hybrids in US Amid Market Shift

Stellantis has officially discontinued all plug-in hybrid models in the United States, including the popular Jeep Wrangler 4xe, Grand Cherokee 4xe, and Chrysler Pacifica. A spokesperson for the automaker stated, “With customer demand shifting, Stellantis will phase out plug‐in hybrid (PHEV) programs in North America beginning with the 2026 model year.” This decision reflects the company’s ongoing evaluation of its product strategy to align with changing consumer preferences and regulatory requirements.

The move follows a series of challenges for Stellantis, particularly concerning safety issues. In November 2025, both the Wrangler 4xe and Grand Cherokee 4xe were subject to a recall due to engine fire risks. A fix for this problem is not expected until the second quarter of 2026. In the interim, a stop-sale order was issued for all plug-in hybrid vehicles in dealer inventory, which has now led to a complete withdrawal from the market.

While discontinuing these models, Stellantis is pivoting its focus towards more competitive electrified solutions. The spokesperson emphasized that the company will concentrate on hybrid and range-extended vehicles, which are better suited to meet customer needs. In light of this strategy, Ram, another Stellantis brand, announced it would cancel its long-awaited 1500 EV and instead fast-track the extended range electric variant.

This decision occurs against a backdrop of regulatory changes under the previous administration, which has significantly impacted the electric vehicle market. Former President Donald Trump, a critic of climate change initiatives, set penalties for failing the Corporate Average Fuel Economy (CAFE) fuel economy targets to zero. Additionally, the federal tax rebate for electric vehicles, which could amount to USD 7,500 (approximately AUD 11,200), is set to expire by the end of September 2025.

In Australia, the Jeep Wrangler is currently only offered with a 3.6-litre V6 engine. Despite the discontinuation of the Grand Cherokee range in March 2025, the 4xe variant remains listed on the company’s local website. The Chrysler Pacifica has never been available in the Australian market due to its lack of right-hand drive production, which has limited its appeal compared to its Voyager predecessors.

While Stellantis is withdrawing certain models from the US market, it continues to explore other avenues internationally. The electric Jeep Avenger, measuring just over 4 meters in length, is not viewed as viable for the American market. Moreover, the Compass, which has been offered in both mild hybrid and plug-in hybrid forms, is a second-generation model that has been discontinued in the US, although a new generation is planned for release in Europe and Australia by late 2026.

As Stellantis redefines its vehicle lineup, the focus on electrification will likely shape its future offerings, aiming to better meet the evolving demands of consumers and regulatory bodies alike.

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