Why Stellantis is doubling down on hybrids instead of EVs
Stellantis is shifting its focus towards hybrid vehicle production in the U.S. market under CEO Antonio Filosa, moving away from the previous emphasis on fully electric models. Filosa believes traditional hybrids will become increasingly popular, particularly highlighting the Jeep Cherokee hybrid. This strategic pivot aims to address significant market share losses, which reached 7% in the first half of the year, improving slightly to 8% by the third quarter. Engaging with government officials to reduce fuel economy regulations further supports this strategy by allowing increased production of gasoline-powered vehicles. Moving forward, Stellantis plans to launch new models to bolster market presence and regain competitiveness.
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CEO Antonio Filosa, who took over about six months ago, emphasizes the potential of traditional hybrids over plug-in models, believing they will be favored in the U.S. market.
The decision to focus on hybrids comes as Stellantis faces steep market-share losses, a situation that contributed to the departure of former CEO Carlos Tavares.
Filosa recently met with Ford's CEO and President Trump to discuss proposals to relax fuel economy regulations, which would enable increased production of gasoline vehicles.
Stellantis has reinstated the HEMI 8-cylinder engine due to dealer and customer demand, resulting in 10,000 orders on the announcement day and 50,000 within six weeks.
As a result of this strategy, Stellantis has seen its market share incrementally improve, with expectations for further gains from upcoming vehicle launches across its 14 brands.