Jeep to study traditional hybrids as demand zooms for alternatives to plug-ins, EVs

TOKYO — Jeep will consider traditional hybrids as a more cost-effective alternative to plug-ins and full electrics as it seeks to diversify its electrified lineup and tap surging demand for fuel-efficient gasoline-electric vehicles in the U.S. market.

The 4x4 stalwart will study options for standard hybrid-electric vehicles, or HEVs, in a range of segments because the technology doesn't require the costly batteries used in plug-ins and electric vehicles, said Matthew Nyquist, Jeep's vice president of global product planning.

"Between plug-in and HEV, there's quite a bit of associated cost, as we have the engine and a fairly good-sized battery within the plug-in hybrid," he said.

"It's a natural extrapolation to look at HEV, and specifically in markets like the U.S., there's a lot of HEV in multiple segments. So, it's definitely something we would study across all the segments to provide the right price point and the right kind of fuel economy for our buyers."

Nyquist's comments came Sept. 26 as Jeep introduced its first full-electric vehicle, the Avenger compact crossover, to Japan as the Stellantis brand tests this hybrid-loving market's appetite for EVs and tries to gain traction in a country where it is the last successful American brand.

Executives of Jeep Japan pulled the wraps on the Avenger at a glitzy unveiling on the 46th floor of a Tokyo high-rise overlooking the nation's capital. The new nameplate plays a critical leadoff role in the Stellantis marque's upcoming EV shift, which includes two larger EVs planned for the U.S., the Recon and the Wagoneer S. Those vehicles are expected to eventually land in Japan as well.

Jeep already has a range of plug-in hybrids in the U.S., marketed under the 4xe badge. The powertrain is offered on the Wrangler, Grand Cherokee and soon the Gladiator pickup. In Europe, it also offers a mild-hybrid setup called e-Hybrid for the Renegade and Compass. The Avenger is optioned there as a mild or plug-in, in additional to a traditional internal combustion offering.

By branching into traditional hybrids, Jeep could catch a wave of U.S. consumer enthusiasm.

Automakers across the board, from Toyota and Ford to Hyundai and Volvo, are seeing hybrid sales zoom in the U.S. as car buyers turn to them as a more affordable alternative to full electrics that are also unencumbered by concerns about range or recharging infrastructure.

In the second quarter of 2024, traditional hybrids accounted for about 9.6 percent of U.S. sales, up from 8.6 percent in the preceding quarter, according to the U.S. Energy Information Administration. Plug-ins, by contrast, saw market share increase to 2 percent from 1.7 percent.

Nyquist did not give a timeline for the expansion of Jeep hybrids, but executives are studying the technology for the U.S. and beyond.

"Based on its nature and what it provides for consumers, it is definitely one of a range of things we are looking at for sure," Nyquist said in a video conference call with journalists.

Additional hybrid offerings may also help spur Jeep sales in Japan, where standard and plug-in hybrids account for more than half of the country's passenger vehicle sales.

In 2023, Jeep was the country's No. 7 foreign brand, notching a 17 percent sales increase to 11,535 vehicles. Through August this year, Jeep Japan's sales slipped 23 percent to 6,023.

The Avenger, assembled in Poland, is deemed too small for American needs, but Jeep said it has already notched more than 100,000 orders in Europe since its launch there in 2023.

The Avenger's diminutive dimensions will be a plus in Japan where small cars dominate, and where Jeep has racked up considerable sales thanks to its Renegade subcompact.

For now, the Avenger is being offered here only as a full EV, and that could prove challenging.

EV sales are climbing quickly in Japan, and uptake of foreign brands is especially brisk.

But overall volume is building on a tiny base. Total EV sales in Japan rose to nearly 44,000 vehicles last year, from 31,541 in 2022. And more than half of those sales comprised foreign brands. Overall market share is still just 1.6 percent of passenger vehicles.

The Avenger is built on a second-generation version of the Stellantis eCMP electric platform that also underpins cars such as the Peugeot e-208, Opel/Vauxhall Mokka-e and Citroen e-C4.

The Avenger's 54-kilowatt-hour battery gives a range of up to 486 kilometers (301 miles) based on the Worldwide Harmonised Light Vehicle Test Procedure, which is considered more lenient and optimistic than the U.S. EPA rating regime. The battery pack is split to sit under the front seats and rear seats with room for the passengers' feet in between.

The Avenger uses a 115-kWelectric motor supplied by the Emotors joint venture between Nidec and Stellantis and built at Stellantis' plant in Tremery, France. In Japan, a second motor is expected to be installed on the rear axle to create a 4xe all-wheel-drive model for launch later.