Stellantis has announced that it will discontinue plug-in hybrid (PHEV) programs in North America starting in the 2026 model year. This decision to halt production of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee, and Chrysler Pacifica is based on changing customer preferences, as stated by a spokesperson for the company.
The automaker will now concentrate on more competitive electrified solutions, such as hybrid and range-extended vehicles, to better align with customer demands. Stellantis aims to provide advanced propulsion systems that offer efficiency and a range of options, ranging from internal combustion to hybrid, range-extended, and fully electric vehicles.
Plug-in hybrids combine traditional internal combustion engines with an all-electric range when charged, resembling electric vehicles. The shift announced by Stellantis follows the release of its 2025 sales figures, indicating a significant increase in Canadian sales for the Chrysler Pacifica and Grand Caravan compared to the previous year. Caravan sales surged by 30%, while Pacifica sales soared by 95%, driving a notable overall growth for the Chrysler brand.
An expert in the automotive industry suggests that the Trump administration’s changes to emissions regulations played a key role in Stellantis’ decision. The proposed reduction in fuel economy standards by former President Trump, which President Biden had finalized in 2024, aimed to facilitate the sale of gasoline-powered cars by automakers.
While Stellantis phasing out its plug-in hybrid programs may have minimal impact on jobs at the Windsor plant, according to industry expert Sam Fiorani, the demand for minivans from the plant remains steady. Fiorani predicts that Stellantis will likely maintain production levels as before, transitioning to standard Pacifica models instead of plug-in hybrids.
Looking ahead, Fiorani anticipates a gradual shift towards electric vehicles and hybrids in the coming years, with Windsor potentially reaping the benefits of its NextStar Energy battery plant in the long run. Despite the global push towards fully electric vehicles by 2035, Fiorani suggests that electrification may extend well into the 2040s due to evolving targets and timelines.
Stellantis recently announced plans to hire up to 1,500 employees for an additional manufacturing shift in Windsor by early 2026, reinforcing Canada’s pivotal role in the company’s global operations. Trevor Longley, the president and CEO of Stellantis Canada, expressed enthusiasm for the future of advanced automotive production in Canada.