TLDR
- Stellantis stops Jeep & Chrysler PHEVs in North America for 2026 models.
- Windsor plant shifts PHEV output to standard minivans, keeping jobs stable.
- Market demand and simpler electrification drive the PHEV phase-out.
- Jeep focuses on EVs; Chrysler strengthens minivan and hybrid offerings.
- Relaxed U.S. fuel rules reduce pressure to maintain costly PHEV programs.
Stellantis N.V. announced it will end production of plug-in hybrid Jeep and Chrysler models in North America. The company will stop building the Jeep Wrangler 4xe, Jeep Grand Cherokee PHEV and Chrysler Pacifica PHEV starting with the 2026 model year. The move reflects changing consumer demand and a broader shift toward simpler electrified solutions.
The decision affects vehicles that combine internal combustion engines with limited all-electric ranges. PHEVs were introduced as a transitional technology to bridge gas-powered vehicles and fully electric cars. Stellantis prioritizes hybrids, range-extended vehicles and fully electric options to match market needs.
Stellantis will focus on efficiency and advanced propulsion systems across its lineup. The company aims to offer flexible choices for customers while maintaining regulatory compliance. This adjustment aligns production with vehicles that provide higher profitability and lower complexity.
Impact on Windsor Plant and Vehicle Production
The Windsor plant produces Chrysler Pacifica and Grand Caravan minivans, which continue to see steady demand. Canadian sales of Pacifica jumped 95% in 2025, while Grand Caravan sales increased 30%. Analysts expect the plant to maintain output despite ending PHEV production.
Only a small number of PHEVs were built at Windsor, roughly 8,800 last year. Stellantis plans to replace the PHEV output with standard minivan production. This approach ensures workforce stability while shifting product focus to traditional models.
The plant will also support a new manufacturing shift expected to start in early 2026. This expansion could hire up to 1,500 workers. It reinforces Canada’s strategic role in Stellantis’ global operations.
Market and Regulatory Influences on the Decision
The U.S. government recently proposed changes to fuel economy rules that reduce penalties for carbon overages. Automakers no longer face the same incentives to produce PHEVs. Stellantis now has less regulatory pressure to maintain costly plug-in hybrid programs.
PHEVs combine engines and batteries, which increases vehicle cost and complexity. The company previously relied on them to offset high emissions from SUVs and trucks. With relaxed rules, the need for PHEVs to meet federal targets has declined.
Electrification plans continue, but the rollout may extend further into the 2040s. Battery and hybrid adoption will increase gradually rather than rapidly. Windsor’s NextStar Energy battery plant is expected to see delayed but eventual expansion as EV production grows.
Jeep and Chrysler Product Strategy
Jeep continues offering fully electric SUVs like the Wagoneer S and Recon. The brand will maintain sales of existing PHEV models while reevaluating future demand. Chrysler will focus on standard minivans and electrified solutions that meet customer expectations efficiently.
The PHEV cancellation comes amid recent recalls of Jeep SUVs due to fire risks. Stellantis confirmed these issues are unrelated to the electrification strategy change. The company is reviewing its U.S. portfolio to improve long-term profitability and streamline production.
Stellantis aligns production with evolving consumer preferences and regulatory conditions. The focus on hybrids, range-extended, and electric vehicles positions the company for future market trends. PHEVs are no longer central to its North American strategy.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
