Stellantis $STLA ( ▲ 2.66% ) CEO Antonio Filosa said the automaker will prioritize hybrids in the U.S. market—the latest sign that the company is shifting its powertrain strategy away from fully electric vehicles.
The details: Filosa mentioned the plan on Thursday while speaking at a conference organized by Goldman Sachs, Reuters reports, providing only a few details on the strategy.
The CEO specified that the focus is on “traditional” hybrids rather than plug-in hybrids, which he doesn’t see having the same demand.
He also highlighted the Jeep Cherokee, which features the company’s new 1.6-liter turbo-four hybrid engine that delivers an estimated 37 mpg combined and more than 500 miles per tank.
The hybrid Cherokee— which a Jeep spokesperson told CDG News (via email) the company is on track to start delivering first units to dealers by the end of this month as they ramp up production—starts at $36,995.
What they’re saying: "We truly believe that hybrid is going to be one of the favorite powertrains in the U.S.," Filosa said, speaking at the Goldman Sachs conference, per Reuters.
Why it matters: Stellantis’ push into “traditional” hybrids gives dealers more inventory in the sweet spot—buyers who want better fuel economy without going full EV—boosting traffic and keeping trucks and SUVs viable while still talking mpg and emissions.
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Between the lines: News of Stellantis’ plans to expand its hybrid lineup—which came a day after the Trump administration announced that it is rolling back Corporate Average Fuel Economy (CAFE) rules—aligns with several recent moves by the company, falling back to more “traditional” powertrains.
In June, Stellantis announced the return of the popular Hemi V8 for the 2026 Ram 1500—then said in September that it was nixing plans to launch an all-electric Ram.
Plans for an all-electric Chrysler crossover, codenamed C6X, were halted in January, with all indications now that the EV will never see the light of day.
Months before the debut of the 2026 gas-powered Dodge Charger, the brand began scaling back on the EV variants by pulling the base RT model from the lineup.
Big picture: With Stellantis leaning into hybrids and easing off some EV plans, dealers can expect more familiar nameplates with new powertrains, less need for heavy EV education, and potentially stronger margins on hybrid trucks and SUVs than on incentive-heavy early EVs.
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