Jeep Compass 2026 News

Stellantis, the parent company that owns Jeep and Alfa Romeo among other car brands, will discontinue the sale of all plug-in hybrid vehicles (PHEV) in North America.In a statement issued by Stelantis the company cited a lack of demand for PHEVs as the reason for its decision to remove them from sale.“With customer demand shifting, Stellantis will phase out plug‑in hybrid (PHEV) programs in North America beginning with the 2026 model year, and focus on more competitive electrified solutions, including hybrid and range‑extended vehicles where they best meet customer needs.”Stellantis confirmed the decision would see plug-in hybrid versions of models discontinued, including the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe and Alfa Romeo Tonale.Stellantis blames customer demand, but sales show the Wrangler 4xe to be the best-selling plug-in hybrid in the United States. Stellantis has been plagued with hybrid woes in the US, with the company issuing a recall as recently as November 2025 for a potential fire risk that affected more than 320,000 vehicles across the Jeep Grand Cherokee 4xe and Wrangler 4xe ranges. In September, 2025, Jeep announced it would discontinue its plans for a PHEV version of its Gladiator ute before it had even gone into production.The move to pull PHEVs from its brands in the US is at odds with global trends, which show sales of hybrids, particularly PHEVs, increasing as demand for battery electric vehicles (BEVs) wanes.Stellantis said it will focus on building its BEV and regular hybrid ranges in North America. Stellantis’ decision to discontinue PHEVs in the US doesn’t affect Australia’s Jeep range mainly because the Jeep Grand Cherokee was axed in 2025, including the 4xe, and the Wrangler isn’t offered with plug-in hybrid power.The Jeep Compass is offered as a PHEV in Australia and will continue to be even when the new generation arrives because it will be produced in Europe and won’t be affected by the company’s US decision. Meanwhile the Avenger SUV is the only BEV offered by Jeep in Australia.As for the Alfa Romeo Tonale PHEV this was axed from the brand’s Australian line-up in 2025.

To write that Jeep is in trouble is not news. The American off-road brand has been in major decline in the Australian market for years.The real question is — can Jeep survive 2026? Because there is some hope beyond that, but first Jeep must make it there.Instead of thriving in this SUV-dominant era, Jeep has found itself struggling to retain buyers or find news ones. The decision to drop the Grand Cherokee, once the backbone of the brand in Australia and the best-selling large SUV just over a decade ago, was seen as a sign parent company, Stellantis, is preparing a retreat from Australia.The brand is adamant that is not the case and the late 2025 introduction of the 2026 Gladiator and the incoming updated Wrangler are a sign the brand isn't ready to quit yet.Jeep could continue on selling its two core models, the reality is those would be lucky to each pass 1000 sales annually, leaving the brand in a precarious position with the Grand Cherokee gone.Instead, Jeep has to spend 2026 holding on for a better future. There is hope on the horizon, in the form of the new-generation Compass, which was revealed in early 2025 and was originally touted as coming in ‘26, but a Jeep Australia spokesperson told CarsGuide no official timing has been locked in.While it could sneak in by the end of ‘26, it’s more likely to be ‘27 by the time the Compass arrives. When it does, it would finally give the brand a fresh small SUV to compete in one of the biggest segments of the market, where the current model is literally one of the least popular models.The new Compass is bigger and more spacious than the current model and sits on the same underpinnings as the Peugeot E-3008 and E-5008, so it will introduce European-style ride and comfort; something that could help woo buyers back to Jeep.Fortunately for Jeep Australia, while there will be an all-electric variant, Jeep is also offering the new Compass with hybrid and plug-in hybrid powertrains to give it broad appeal.Will this be enough to revive Jeep’s fortunes in Australia? Unfortunately not, at least not unless the new Compass is a runaway sales success. But it does have the potential to give the brand a much needed boost.Certainly more than the electric Avenger has done or the possible addition of the Recon mid-size electric SUV or larger, more premium Wagoneer S have the potential to do.It’s telling that the Grand Cherokee is on-track to remain the brand’s best-selling model in 2025, despite being axed as early as March. The Wrangler may be iconic, but it’s an extremely niche vehicle, and the same is true of the Gladiator.Perhaps the biggest problem for Jeep Australia is that the problems aren’t local. Jeep is struggling in its home market, and naturally that is where the focus will be to ensure the long-term survival of a brand that was forged in battle but has become a synonym for off-roaders.Like so many brands it got caught up in the excitement/legislation around electric vehicles and strayed too far from its core principles, wasting billions of dollars on 4xe vehicles that are so far proving to be deeply unpopular; certainly the Grand Cherokee 4xe did not find its mark in Australia.Stellantis is now looking to invest many more billions into reinvigorating Jeep’s US manufacturing operations, to try and revive its sales at home. What that means for Jeep in Australia remains unclear, but 2026 will all be about hanging on and hoping for a brighter future.