Business

/

ArcaMax

Stellantis pulls back on EVs and hybrids as $7,500 tax credit nears end

Luke Ramseth, The Detroit News on

Published in Business News

Stellantis NV has dialed back production of its electrified lineup — with dealers prevented from ordering several models — as the end of the federal $7,500 electric vehicle tax credit approaches on Sept. 30.

The carmaker wouldn't provide details on the changes but confirmed 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.


©2025 www.detroitnews.com. Visit at detroitnews.com. Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus