Stellantis pulls back on EVs and hybrids as $7,500 tax credit nears end
The carmaker wouldn't provide details on the changes but confirmed that at least some production of electric models had paused. 'In line with our retail priorities and the plans shared with our dealer network, we are working to ensure our production plan is in line with consumer demand,' Stellantis spokeswoman Jodi Tinson said in a statement.
Stellantis retailers said the carmaker has either fully stopped or restricted orders on its EV offerings and plug-in hybrids - including the fully-electric Jeep Wagoneer S and Dodge Charger Daytona, as well as the hybrid Jeep Wrangler, Grand Cherokee and Chrysler Pacifica.
Purchasers of the Wagoneer S and Pacifica qualify for the $7,500 tax credit, and those who lease any of the company's other plug-in models can also get the discount. But those incentives are soon going away.
Dealers selling all types of EVs and plug-in hybrids are trying to sell off as many of their existing stock as possible before the tax credit expires, customer demand falls, and they find themselves with suddenly much pricier models sitting on their lots.
Stellantis also has been reminding customers about the end of the tax credit on its brand websites. 'Get your EV incentive while you can!' says the Jeep Wagoneer S site, while the Jeep Wrangler 4xe page warns: 'Your $7,500 EV incentive is going fast.'
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions LLC, said the recent end of California's strictest-in-the-nation emissions policies also impacts Stellantis' need to produce so many of its plug-in hybrids.
Before, the carmaker needed to send lots of hybrids to the states that followed the Golden State's stringent policies, Fiorani said. But while Stellantis may still be on the hook in California alone, due to a prior arrangement, it should now be able to send larger numbers of its gas-powered models to the other states.
'Everybody's making changes to their production for electric vehicles,' Fiorani said, as the tax credit nears its expiration thanks to President Donald Trump's sprawling spending and tax legislation signed into law earlier this summer.
The Charger Daytona and Wagoneer S haven't sold in large numbers since they hit dealers at the start of this year, even with the tax credit in place. But the automaker's plug-in hybrid offerings have been among the top sellers in the category over the last few years.
In 2024, the Grand Cherokee 4xe sold 27,590 units, or 13% of the model's overall sales; Wrangler 4xe's 55,554 units sold made up 37% of sales; and Chrysler Pacifica Hybrid sold 20,423 units, or 17% of the minivan's overall sales.
Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
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Miami Herald
3 hours ago
- Miami Herald
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Stellantis NV, which also did not report July sales data, is one of many automakers offering aggressive incentives on both EVs and plug-in hybrids, along with prominent language on its brand sites trying to spur customers into action: "Get your EV incentive while you can!" Jeep says on its website in a promotion for the all-electric Wagoneer S. "Brands are going crazy with incentives, and it's good for consumers," said Lauren Fix, CEO of the consulting firm Automotive Aspects. Auto reviewer Anton Wahlman, a former technology analyst, said the next few weeks will be "an inventory cleaning event." Sam Fiorani, industry analyst at AutoForecast Solutions, said manufacturers will compensate for the loss of the EV tax credit with their own incentives to keep prices stable: "It's unlikely that you'll see the prices drop, but you will see leasing deals or customer rebates." 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"Currently, they're encouraged by emissions (regulations) and by the federal incentives, but once those two things go away, then there's no real incentive for a manufacturer to add a new model to the lineup in a market that's already crowded with EVs." More: Jeep will bring back Hemi V-8 in more models, brand's CEO says Automakers say they remain committed to EVs in the long run, although many are shifting investments toward hybrids and gas-powered, money-making trucks and SUVs. "Toyota's commitment to vehicle electrification is just one important element of its effort to help the world build a zero-carbon future," Toyota Motor North America spokesperson Derrick Justin Brown said in an email. "Through the current industry shifts, including those around EV tax credits, that commitment remains strong, and there are no current plans to alter our approach." Laudermilk said Honda views electrification as "a marathon, not a sprint." "We remain focused on expanding our electrified lineup, utilizing our flexible manufacturing to produce ICE, hybrid-electric and battery electric models on the same production lines to meet the needs of our customers," Laudermilk said. GM executives have said the company will continue to pursue EV innovations, even as it beefs up its gas-powered fleet with investments at Orion Assembly in Michigan, Tonawanda Propulsion in New York and Toledo Propulsion Systems in Ohio. Ford Motor Co. last year canceled plans to produce a three-row, battery-powered SUV at its Oakville Assembly Complex in Ontario, planning instead to build gas-powered Super Duty pickups there starting next year. And the Dearborn automaker this month delayed the launch of its next-generation electric van and electric full-size pickup, though it also said it would invest $2 billion to build a midsize electric pickup at Louisville Assembly. Stellantis this summer announced plans to bring back 5.7-liter Hemi V-8 engines in Jeep SUVs and Ram light-duty pickups as Trump and a GOP-controlled Congress slashed emission and fuel economy standards that had forced the engine's slow demise in the first place. Despite the more favorable regulatory environment for gas engines, Fiorani said automakers neglect electrification at their peril. "A good manufacturer will see that this is the wave of the future and will invest in it," he said. "A short-term manufacturer will go back to building just ICE vehicles and ignore the future of EV." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
