Stellantis phasing out plug‑in hybrid auto programs in North America

Stellantis says it will phase out plug‑in hybrid (PHEV) programs in North America beginning with the 2026 model year.

The decision to end production of the plug-in hybrid Jeep Wrangler, Jeep Grand Cherokee and Chrysler Pacifica is in response to “customer demand shifting,” according to a spokesperson for the automaker.

Stellantis will "focus on more competitive electrified solutions, including hybrid and range‑extended vehicles where they best meet customer needs,” LouAnn Gosselin said in an emailed statement to CBC Windsor.

“This approach reinforces the company’s commitment to offering advanced propulsion systems that maximize efficiency and provide options from internal combustion to hybrid, range‑extended, and fully electric solutions.”

PHEVs feature traditional internal combustion engines, but also have an all-electric range when charged like an electric vehicle.

The Stellantis announcement comes weeks after the release of its 2025 numbers that show Canadian sales of the Chrysler Pacifica and Grand Caravan rose significantly compared to 2024.

Sales of the Caravan jumped 30 per cent on a yearly basis, while Pacifica sales soared 95 per cent, driving "impressive" overall growth for the Chrysler brand, the company said.

The demand for minivans from the Windsor plant is fairly steady.- Sam Fiorani, auto industry expert

One automotive industry expert believes the change in emissions regulations by the U.S. administration under President Donald Trump played a major role in the decision by Stellantis.

Trump has proposed slashing fuel economy standards that then President Joe Biden had finalized in 2024, in a push to make it easier for automakers to sell gasoline-powered cars.

Sam Fiorani, vice-president of global vehicle forecasting at AutoForecast Solutions, said the fact manufacturers no longer have to pay for overages on their carbon output means companies like Stellantis don't have to build plug-in hybrids.

No significant impact on Windsor, says expert

But Fiorani is of the opinion that Stellantis phasing out its plug‑in hybrid programs will have little to no impact on jobs at its Windsor plant.

“The demand for minivans from the Windsor plant is fairly steady. There are only a couple players in this field. It's only Honda, Toyota, Kia and Chrysler, so Stellantis is likely to build the same number of vehicles,” he told CBC News.

“They only built 8,800 plug-in hybrids last year, and that part of the capacity of that plant will very likely just build a standard Pacifica going forward.

“I don't think the elimination of the PHEV version of the Pacifica [will] lower the output of the plant [by] any significant amount,” added Fiorani.

Delayed payoff on battery plant

Fiorani said while there is a general push toward electric vehicles, Windsor will likely see a delayed payoff on its NextStar Energy battery plant.

“We are going to see more EVs, we are going to see more hybrids over the next decade and two, but it's just not going to happen as quickly as the Biden administration had wanted it to happen,” he said.

“Countries around the world were looking for fully electric vehicles across their whole fleet by 2035. That was never going to happen, but now whatever the …  target was going to be has now been pushed out, so we're going to see electrification stretch out into the 2040s.”

In December, Stellantis said it expects to hire up to 1,500 people for an additional manufacturing shift in Windsor by the time it launches in “early 2026.”

“Today’s announcement reinforces Canada’s critical role in Stellantis’s global operations,” Trevor Longley, president and CEO of Stellantis Canada, said in a Dec. 15 statement.

“As we lead the future of advanced automotive production, we’re thrilled to see our new Windsor Assembly Plant team hitting the ground running.”