January 10, 2026 – Stellantis has made the official call to pull out of the North American plug – in hybrid (PHEV) market. Starting with the 2026 model year, production of the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe, and Chrysler Pacifica PHEV models will come to an end.
On January 8 local time, Stellantis informed the foreign media outlet The Drive that in response to shifting market demands, the group will gradually phase out its PHEV projects in North America. Instead, it will redirect its resources towards more competitive electrification strategies, encompassing hybrid models and, where appropriate, range – extended models.
These PHEV models were once among the best – selling PHEVs in the US market. However, the Jeep series has been plagued by quality issues for a long time, leading to multiple recalls. For instance, in November 2025, Jeep recalled its PHEV models due to battery safety concerns and advised owners to avoid indoor parking and charging until the fixes were completed.
The decline in demand is undoubtedly one of the underlying factors. Previously, buyers of PHEV models were eligible for a $7,500 federal electric vehicle tax credit, but this incentive is no longer available.
Moreover, changes in the regulatory environment might have an even greater impact. With the weakening of corporate average fuel economy standards and the suspension of California’s electric vehicle sales requirements, automakers are facing significantly less pressure when it comes to electric and highly fuel – efficient models.
The report also noted that there are still several noteworthy new electrified models set to be launched this year. The Ram 1500 REV pickup and the Jeep Grand Wagoneer SUV, both from Stellantis, will hit the market this year. These two models adopt a gasoline range – extending solution and are seen as significant attempts by the group in the direction of electrification.
