Stellantis US PHEV Sales Halt: Scrapping Hybrid Strategy Amid Weak Demand
Stellantis is scrapping U.S. plug-in hybrid sales due to weak demand. Learn why the automaker is pivoting away from PHEVs and what it means for the future of Jeep and Chrysler.
The bridge to electrification is showing signs of collapse. Stellantis has decided to pull the plug on its plug-in hybrid (PHEV) sales in the U.S. market. Citing a sharp decline in consumer interest, the automaker is shifting its focus back to internal combustion engines and pure battery electric vehicles.
Why Stellantis Is Halting US PHEV Sales
According to reports from Reuters, the parent company of Jeep and Ram notified dealers that it'll stop replenishing inventory for PHEV models. U.S. consumers are increasingly choosing sides: they're either sticking with more affordable gas-powered cars or jumping straight to fully electric vehicles (BEVs) to capitalize on federal tax credits.
A Strategic Shift to Profitability
The decision comes as inventory for models like the Jeep Wrangler 4xe and Grand Cherokee 4xe reportedly hit record highs. By cutting underperforming lines, Stellantis aims to protect its margins. The company is reallocating resources to support its Dare Forward 2030 goal, which targets a 50% EV sales mix in the U.S. by the end of the decade.
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