Stellantis Pivots From PHEVs to Hybrids and EREVs in North America

Stellantis STLA, an Italian-American automaker, has officially ended sales and production of its plug-in hybrid (PHEV) models in the United States. The move marks the end of an era for several high-end electrified vehicles, including the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe and Chrysler Pacifica PHEV.Beginning with the 2026 model year, Stellantis will discontinue its plug-in hybrid (PHEV) programs in North America and shift its focus toward more competitive electrified solutions, including hybrid and range-extended electric vehicles (EREVs). The company believes these alternatives better align with evolving customer needs, noting that changing consumer preferences have significantly reduced demand for plug-in hybrids.The decision is notable, given the recent success of some PHEV models. Just a few years ago, the Jeep Wrangler 4xe was the best-selling plug-in hybrid for three consecutive years. After debuting in 2021, it quickly became the benchmark for electrified off-road SUVs.Despite the Jeep Wrangler 4xe’s success, Stellantis has now confirmed the cancellation of this flagship PHEV, along with other plug-in hybrid models across its U.S. lineup. As a result, the Jeep Grand Cherokee 4xe and Chrysler Pacifica PHEV are also being discontinued as Stellantis reshapes its North America portfolio.The strategic shift decision reflects weaker demand for plug-in hybrids, while traditional hybrids – which do not require external charging – have gained broader acceptance among U.S buyers. The transition also comes amid wider industry and policy changes that have influenced the automaker’s electrification strategies. Recent adjustments to the U.S. federal incentives have reduced the financial appeal of certain electrified vehicles, including PHEVs.Additionally, the discontinuation also follows a series of recalls affecting PHEV models, particularly Jeep’s 4xe variants. Stellantis recalled roughly 375,000 Jeep plug-in hybrids over concerns related to battery failures and reports of fires. While the company has not directly attributed its decision to quality and safety concerns, these issues have nevertheless placed additional pressure on the PHEV segment.In September 2025, Stellantis announced that it has discontinued the development of Ram’s all-electric pickup, the Ram 1500 REV.Overall, the company is repositioning its North American strategy around conventional hybrids and extended-range electric vehicles (EREVs), which offer electric driving with longer range and reduced dependence on charging infrastructure.Stellantis N.V. Price, Consensus and EPS Surprise Stellantis N.V. price-consensus-eps-surprise-chart | Stellantis N.V. QuoteZacks Rank & Key PicksSTLA stock currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the auto space are Mazda Motor (MZDAY), Subaru Corporation (FUJHY) and Suzuki Motor (SZKMY), each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for MZDAY’s fiscal 2026 and 2027 EPS has improved 3 cents and 21 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for FUJHY’s fiscal 2026 and 2027 EPS has improved 6 cents and 2 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for SZKMY’s fiscal 2026 sales indicates year-over-year growth of 3.8%. The Zacks Consensus Estimate for SZKMY’s fiscal 2026 and 2027 EPS has improved 35 cents and 21 cents, respectively, in the past 60 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Subaru Corporation (FUJHY): Free Stock Analysis Report Mazda Motor Corporation (MZDAY): Free Stock Analysis Report Suzuki Motor (SZKMY): Free Stock Analysis Report Stellantis N.V. (STLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks