Stellantis Stock Drops As It Reportedly Scraps Jeep and Chrysler Plug-In Hybrid Vehicles In US

• The decision was reportedly a result of waning customer demand and the need to focus on “more competitive electrified solutions, including hybrid and range‑extended vehicles.” 
• A Jeep spokesperson confirmed to CNBC that the brand will, however, continue to offer all-electric SUVs.
• In November, Stellantis recalled 320,065 Jeep PHEVs citing fire risk.

Automaker Stellantis NV (STLA) is reportedly scrapping its Jeep and Chrysler plug-in hybrid electric vehicles in North America as EV demand softens.  

CNBC reported on Friday, citing a company spokesperson, that the company has decided to end production of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee and Chrysler Pacifica starting with the 2026 model year. The decision was reportedly a result of waning customer demand and the need to focus on “more competitive electrified solutions, including hybrid and range‑extended vehicles.”

A Jeep spokesperson confirmed to CNBC that the brand will, however, continue to offer all-electric SUVs.

STLA shares dropped 2% at the time of writing.

Stellantis’s PHEV efforts

PHEVs, or Plug-in Hybrid Electric Vehicles, are vehicles with both an electric motor and a traditional gasoline engine that can be charged externally (plugged in) for electric-only range, then seamlessly switch to the gas engine for longer trips.

Chrysler introduced its PHEV minivan in 2016 and Jeep brand followed with its Wrangler PHEV in 2020 and its Grand Cherokee PHEV in 2021.

Stellantis did not immediately respond to Stocktwits's request for comment.

Sales In US

Stellantis said earlier this week that it sold 332,321 vehicles in the fourth quarter, marking a second consecutive quarter of sales increase.

In October, Stellantis announced a $13 billion investment over four years to grow its business in the U.S. The company is looking to ramp up production by half with the investment and roll out five new vehicles and 19 product refreshes.

However, in November, Stellantis also recalled 320,065 Jeep PHEVs citing fire risk, including certain model year 2020- 2025 Jeep Wrangler 4Xe and model year 2022-2026 Grand Cherokee 4Xe plug-in hybrid vehicles. The vehicles in the recall may have been built with a high-voltage battery pack manufactured using cells that are susceptible to separator damage, the National Highway Traffic Safety Administration (NHTSA) said.  

Autonomy Push

Separately, Stellantis announced on Friday that it has entered a partnership with Europe’s mobility platform Bolt to explore the development of driverless autonomous vehicles for commercial operations across the region.

The collaboration would combine Stellantis’ AV-ready platforms with Bolt’s mobility network.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around STLA  stayed within the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

STLA stock has lost 13% over the past 12 months. 

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