Stellantis, the automaker behind Jeep, Ram, Fiat, Chrysler, and Dodge, has just canceled its all-electric by 2030 plan. This announcement is going to change the future of its models. Initially, Stellantis had a pledge to go full electric in Europe by 2030. This move will reshape the future of iconic American brands.
Stellantis Walks Back Its EV Pledge
Stellantis’ Dare Forward 2030 strategy aimed for 100% electric vehicle sales in Europe by 2030, with electric vehicles making up half of sales in North America. To make the plan come true, the company allocated $36 billion to the electrification plan. It also launched the Dodge Charger Daytona and the Jeep Avenger EV. It also reviewed the Ram 1500 REV and phased out the Hemi V8 engine because it was an old engine platform and its emissions did not meet new regulations.
Jean-Philippe Imparato, Stellantis’ head of Europe, confirmed at the Munich Motor Show that the company will forego its “100% BEV strategy.” He added that the EU’s carbon emissions targets are no longer possible. The company will shift its focus toward hybrids and selective EV rollouts depending on demand and infrastructure.
Why the Reversal Happened
There are complex and multiple reasons for this reversal. Here are the reasons according to Imparato and new CEO Antonio Filosa:
- Weak charging infrastructure across Europe that slowed the adoption of EVs.
- Rising production costs that made EVs less affordable.
- Delayed new emission crackdowns until 2027.
- Quality issues that have seen Stellantis struggle with recurring recalls affecting its EVs.
Recently, Stellantis recalled 75 Dodge Charger Daytona and Jeep Wagoneer S EVs because of a defect that increased the chances of rolling away in parking mode. Weeks earlier, it had also recalled close to 92,000 Jeep Grand Cherokee Hybrids because of sudden power loss. It has also recalled 219,000 Ram and Dodge vehicles due to faulty rear-view cameras.
Such recalls affecting its EVs caused the company to struggle and caused tension between rapid EV adoption and maintaining reliability.
What This Means for Dodge, Ram, and Jeep
The company is now focusing on range-extended hybrids instead of all-electric cars. This means that the Ram 1500 REV, which was supposed to be Ram’s first electric pickup, will be delayed further as the company prioritizes hybrid versions. Jeep will continue producing plug-in hybrids, such as the Grand Cherokee 4xe.
In short, gasoline and hybrid engines are expected to stay. The reversal of the plan to go all-electric will ensure that Dodge muscle cars, Jeep SUVs, and Ram trucks will continue being available in hybrid and ICE forms.
The Bigger Industry Trend
Besides Stellantis, other companies have also slowed down on going all-electric. Volvo has dropped its 2030 all-electric plan, while Volkswagen, General Motors, and Mercedes-Benz have restarted investing in internal combustion technology.
Gasoline engines, which seemed to be dying, are now expected to be part of a blended future alongside hybrids and EVs.
For Stellantis, hybrids are now a critical part of its strategy. According to Imparato, this will allow Stellantis to have a flexible approach amid slow EV sales.
The Financial Strategy Behind the Shift
Stellantis has aggressively purchased carbon credits from Tesla and Leapmotor. According to Bloomberg, this move could help the company avoid fines of close to €3 billion in the next three years.
Additionally, Stellantis plans to focus on electrifying existing models instead of launching new EV platforms, which will help it comply with EV rules and also ensure its models are affordable.
According to investors, Stellantis’ strategy offers a pragmatic balance that enables it to leverage carbon credits, meet regulations through hybrids, and buy time to refine its EV models.
Conclusion
Stellantis’ plan to go all-electric by 2030 is now off. However, it’s not abandoning its EVs. Dodge, Jeep, and Ram customers should expect more plug-in hybrids and extended-range vehicles.
This change of plan is a relief for consumers who prefer gas-powered options. However, for those who hoped for rapid electrification, they should be more patient.