The slow sales and recent recall have caused the Stellantis PHEV cancellation. That said, it’s not all doom and gloom for the third of the Detroit Big Three.

If Stellantis being among the Detroit Big Three is confusing, just keep in mind that it is the parent company of Chrysler, Dodge, Jeep, and Ram. Other brands make up the family of Stellantis names, but those four ring a bell as the third name among originally Detroit-based automakers.

The big news from Stellantis is the axing of its PHEV lineup. This isn’t the first shift for the automaker, which has recently transitioned away from EVs and toward large V8 engines, at least in the United States. Stellantis has begun using Hemi V8 engines in Ram pickup trucks again, and there are rumors that the Dodge Charger could regain its Hemi standing to include the vaunted Hellcat engine. In addition to the move toward V8s, thanks to the softening of CAFÉ regulations in America, Stellantis is working on something that sounds like a PHEV but isn’t.

The Stellantis PHEV cancellation has a lot of ingredients

Stellantis just killed off the Jeep Wrangler 4xe, Grand Cherokee 4xe, and Chrysler Pacifica plug-in hybrids starting with the 2026 model year, marking a dramatic shift away from PHEVs. Recently, the Jeep 4xe models were hit with a massive recall, which led to them being discontinued from the brand’s website.

The Chrysler Pacifica hybrid has worn out its welcome as plug-in hybrid sales continue to decline. Toss in the EV market slowdown, and you can bet the Dodge Daytona EV will likely be on the chopping block before you know it. The company is pivoting to traditional hybrids and range-extended EVs instead.

Continued evaluation caused Stellantis to adopt a new automotive electrification strategy

The decision to move away from PHEVs isn’t one the company takes lightly, but Stellantis is poised to pivot and transition quickly. The 2026 model year will be the final year, in recent times, that PHEV models will be sold under the Stellantis brands in North America. The plan was to sell between 160,000 and 170,000 PHEVs in the US, but a stop-sale on Jeep 4xe models, and the aging platform of the Chrysler Hybrid, are not a winning combination.

“Stellantis continually evaluates its product strategy to meet evolving customer needs and regulatory requirements. With customer demand shifting, Stellantis will phase out plug-in hybrid (PHEV) programs in North America beginning with the 2026 model year.”

– Emailed statement from Stellantis

Gas-guzzlers no longer an issue

The move toward a Jeep Wrangler with an electric powertrain and PHEV options was a great way for the company to offset its gas-guzzling trucks and SUVs to meet the CAFÉ standards that, when unmet, bring hefty fines from the federal government. Because of this softening, Stellantis can back away from the problematic PHEV programs and forego EVs for now. Although they remain committed to range-extended EVs, that program is not urgent either. These changes could mean more profitability for the company because building PHEVs is much more expensive than traditional propulsion systems.

Fire risks contributed to the Stellantis PHEV cancellation

Jeep 4xe SUVs are prone to fire risks and have become part of a massive recall. These PHEV SUVs can be dangerous, and the recall, without a solution to the problem yet, caused Jeep to pull the 4xe models off the website and for a stop-sale to be issued for these SUVs. Although Stellantis claims the recall is not related to the cancellation of PHEVs, it’s hard to imagine that the risky vehicles and lack of a solution weren’t a huge part of the decision to shutter the PHEV program.

Will Stellantis sell any EVs still?

The Jeep Wagoneer S and Recon models, which were officially revealed last year as all-electric SUVs, will still be offered and available for anyone looking to purchase them. No word has been shared regarding the future of the Dodge Daytona EV, but it also seems pretty safe for now. Of course, the ending of the Federal EV Tax Credit program doesn’t help push these EVs to new owners, contributing heavily to the slowing of EV sales.

Overall, the Stellantis PHEV cancellation is something that should have been easy to see coming. With only three models, all of which were failing miserably, and the softening of efficiency regulations, it’s easy to see why Stellantis would push the PHEV program aside, especially in the United States, where gas-guzzling V8s are preferred over silent electrically charged vehicles.