Stellantis has announced a significant reduction in production and a freeze on orders for some of its electric and hybrid models in the United States. Although the company did not provide specific details, it confirmed that it has suspended at least part of its production of zero-emission vehicles.
Stellantis curbs production of electric and hybrid vehicles in the U.S.
Stellantis, the well-known automotive group, has decided to reduce production of electric and plug-in hybrid cars destined for the U.S. market. This decision is a direct result of the upcoming Sept. 30 expiration of the $7,500 federal tax credit, a major incentive for the purchase of zero-emission vehicles.
As a result, the group has discontinued or significantly limited dealers’ ability to place orders for several electrified models. This strategic move appears to anticipate the impact of the end of incentives on sales by tailoring production to expected demand.
“We are aligning our production schedule with consumer demand, in tune with sales priorities and plans agreed with our dealers,” explained Jodi Tinson, group spokeswoman, in a statement.
According to dealer reports, Stellantis has suspended or drastically reduced orders for several models. The affected vehicles include the Jeep Wagoneer S, the electric Dodge Charger Daytona, and plug-in hybrid versions of the Jeep Wrangler, Grand Cherokee, and Chrysler Pacifica.
Currently, the purchase of a Wagoneer S or Pacifica still provides access to a $7,500 federal tax credit. This tax benefit is also available to those who lease other plug-in hybrid models. However, these incentives are set to disappear. As subsidies are phased out, Stellantis and its customers will face a less subsidized market at an already critical time for electrified vehicle adoption.
The Dodge Charger Daytona and the Jeep Wagoneer S
The first all-electric models launched by Stellantis, the Dodge Charger Daytona and Jeep Wagoneer S, did not have a brilliant market debut, despite the available tax incentives.
In contrast, the group’s plug-in hybrid vehicles continue to enjoy great success, confirming them as a winning choice for consumers. One example is the Jeep Grand Cherokee 4xe, which sold 27,590 units this year, accounting for 13 percent of the model’s total sales.
Even more impressive is the performance of the Jeep Wrangler 4xe, with 55,554 units sold making up 37 percent of total sales, making it the best-selling PHEV (Plug-in Hybrid Electric Vehicle) in the United States. The Chrysler Pacifica Hybrid also stood out, with 20,423 units sold, accounting for 17 percent of the minivan’s total deliveries.
These numbers show a clear divide in consumer preferences: plug-in hybrid models are clearly outpacing sales of new all-electric vehicles.
