Prime Highlights
- Stellantis is using hybrid systems from suppliers like Blue Nexus and Bosch for upcoming Jeep and Ram vehicles.
- The strategy helps the company launch hybrids faster as demand for fully electric vehicles grows more slowly.
Key Facts
- The new Jeep Cherokee hybrid delivers about 37 mpg, the most efficient non-plug-in Jeep in the U.S.
- U.S. hybrid sales grew from 7.3% in 2023 to 12.6% in 2024, with forecasts of 18.4% in 2025.
Background
Stellantis is turning to outside suppliers for key hybrid technologies as it prepares to launch new Jeep vehicles in North America, reflecting a wider shift in the auto industry toward fuel-efficient hybrids.
The company’s newly released Jeep Cherokee hybrid uses a two-motor electric continuously variable transmission supplied by Blue Nexus, a joint venture backed by Toyota Motor Corporation suppliers Denso and Aisin. Meanwhile, Stellantis plans to use hybrid technologies from Bosch for upcoming extended-range electric vehicles (EREVs), including the new Jeep Grand Wagoneer and future Ram pickup trucks.
Automakers often buy parts from suppliers, but they rarely rely on key systems developed by competitors. Industry experts say Stellantis’ approach allows the company to bring hybrid vehicles to market faster and reduce the cost of developing technology on its own.
The Cherokee hybrid uses a traditional hybrid system similar to those found in Toyota vehicles, such as the Toyota Prius. The system combines a gasoline engine with electric motors to improve fuel efficiency. The model delivers about 37 miles per gallon combined, making it the most fuel-efficient non-plug-in Jeep sold in the United States.
The EREV system planned for the Grand Wagoneer works differently. The vehicle runs mainly on electric motors, while a gasoline engine acts as a generator to recharge the battery when power runs low.
Industry analysts say the shift toward hybrids comes as automakers reconsider large investments in fully electric vehicles. Companies have spent billions developing EVs, but face slower-than-expected consumer demand.
Data from S&P Global Mobility shows hybrid vehicle sales in the U.S. increased from 7.3 percent of the market in 2023 to 12.6 percent in 2024. By comparison, fully electric vehicles rose only slightly, reaching about 8 percent of sales.
Analysts expect hybrid vehicles to account for roughly 18.4 percent of U.S. sales this year, suggesting strong consumer demand for fuel-efficient options without major lifestyle changes.