Stellantis has confirmed that Jeep and Chrysler will stop offering plug‑in hybrid (PHEV) versions of their key models for the 2026 model year — effectively ending the Wrangler 4xe, Grand Cherokee 4xe and the Pacifica PHEV in North America.
The announcement, framed by the company as a shift toward “more competitive electrified solutions,” came after months of speculation and follows recent high‑profile recalls and a changing policy landscape that has softened the regulatory pressure that once made PHEVs strategically useful.
Not just a product decision — a strategic pivot
On paper, the move looks surprising: Stellantis' PHEVs were among the best sellers in the small U.S. plug‑in segment. The Wrangler 4xe in particular was a breakout model when it arrived and led plug‑in sales for several years. But sales trends, recalls and shifting rules changed the calculus.
Company spokespeople said the automaker will now concentrate on mild hybrids and range‑extended hybrid architectures in North America. That means more non‑plugged hybrid systems and vehicles that pair batteries with an onboard gasoline generator for on‑the‑road recharging — an approach Stellantis plans to deploy on refreshed models such as the Grand Wagoneer midyear and a Ram pickup later in the year.
Stellantis CEO Antonio Filosa has flagged hybrids as the fastest‑growing U.S. segment recently and signaled a belief that mild hybrids will win the most customers going forward.
What pushed the decision — demand, recalls and politics
A few forces converged. First: demand. PHEVs remain a small slice of the U.S. market and grew more slowly than full hybrids and battery EVs in recent years. Their tech can confuse buyers and they often carry higher prices because they combine two propulsion systems.
Second: product troubles. The Jeep 4xe models and the Pacifica have been hit by recalls — including a stop‑sale tied to battery fire risk and software/engine issues on the Jeeps — which generated owner frustration and regulatory scrutiny.
Third: regulation. Automakers had been using PHEVs to help meet strict fuel‑economy and tailpipe rules in states that followed California’s standards. With federal and state rules being loosened and the end of the $7,500 federal EV credit for many vehicles, the compliance and incentive reasons for keeping large PHEV programs have diminished.
The decision spokesman said the phaseout “begins with the 2026 model year” and that the company will instead offer a menu of propulsion options from internal‑combustion to hybrids, range‑extended and fully electric solutions.
What this means for buyers and the market
If you already own a 4xe or Pacifica PHEV, Stellantis says the move is not a recall‑driven cancellation, but current owners have been dealing with open recall actions and dealer stop‑sales. For shoppers, Stellantis is betting many will prefer simpler hybrid systems that don’t require plugging in, or range‑extended designs that remove towing and long‑trip anxiety.
For the industry, the decision underscores an awkward moment for plug‑in hybrids: once viewed as a bridge to electrification, they now compete with cheaper traditional hybrids and increasingly available battery EVs — while also shouldering higher complexity and cost.
A quieter road ahead for PHEVs — and a louder one for alternatives
Stellantis’ retreat from PHEVs matches signs across the market that automakers are rethinking which electrified architectures make commercial sense in the U.S. Right now, Stellantis is leaning into mild hybridization and onboard‑generator range extenders, and will keep investing in fully electric models where the business case is strong.
Expect Jeep and Chrysler showrooms to spotlight those alternatives through 2026. The Wrangler, Grand Cherokee and Pacifica nameplates themselves will live on — just not in their current plug‑in forms.
If anything, the story is a reminder that electrification is not a single path. Carmakers are experimenting with several of them at once, and the winners will be the formats that customers actually want to buy — and that regulators and incentives make marketable.