The new Jeep Cherokee for the North American market will use a hybrid system from Blue Nexus, a company backed by Toyota. At the same time, Stellantis plans to equip its future extended-range electric vehicles (EREVs) with technology supplied by Bosch. CNBC revealed the strategy, describing how the group increasingly relies on external suppliers for technologies it once developed internally, even when those suppliers maintain ties, direct or indirect, with competitors.
Stellantis turns to Toyota and Bosch for hybrid tech
The new Jeep Cherokee will feature a two-motor electric continuously variable hybrid transmission, a layout similar to the system Toyota uses in several models, including the Prius. Stellantis plans a different approach for its EREV models. In that setup, electric motors drive the wheels, while the gasoline engine works as a generator that recharges the battery when needed, rather than powering the wheels directly.
The next Jeep Grand Wagoneer EREV will likely use this configuration, and Ram could also bring the technology to future pickup trucks. Sources familiar with the project told CNBC that Stellantis integrates its own engines into both systems and calibrates them to match the brand’s technical standards and driving character. The new Cherokee already stands out for efficiency, reaching 37 miles per gallon combined, which makes it the most efficient non-plug-in Jeep ever sold in the United States.
Stellantis’ decision to work with specialized suppliers reflects a broader shift across the industry. Automakers once expected rapid growth for fully electric vehicles, but that momentum has slowed. Meanwhile, hybrids continue to gain traction, supported by rising oil prices and a broader reassessment of how quickly the energy transition will unfold.
Richard Cox, Senior Vice President of Jeep operations, reinforced that view during an event dedicated to the 2026 Cherokee. Speaking with CNBC, he explained that electrification trends now appear stable, while demand for hybrid vehicles continues to grow rapidly.
Financial results also help explain why the industry has started adjusting its strategy. Stellantis expects €22 billion in costs linked to its EV plans, while Ford faces $19.5 billion in special charges and General Motors has recorded a $7.6 billion write-down. These figures show how the shift toward fully electric vehicles has progressed more slowly, and at a higher cost, than many companies predicted. As a result, automakers now place hybrid technology back at the center of their strategies, not as a temporary transition but as a practical response to a market moving at a different pace than originally expected.
