Stellantis taps Toyota, Bosch suppliers for hybrid technology for Jeep

Detroit – Jeep manufacturer Stellantis It is leaning on technologies from automotive suppliers for its new hybrid SUVs as the market for more fuel-efficient vehicles is expected to continue to grow, CNBC has learned.

The trans-Atlantic automaker’s first North American Jeep hybrid SUV, its recently launched Cherokee, has a Toyota-backed company’s system called Blue Nexus, while its upcoming extended-range electric vehicles, or EREVs, are using key technologies from the world’s biggest automotive SUVs, Bosch.

It’s not uncommon for automakers to use components from suppliers, but it’s less common for key systems or technologies, especially those pioneered by a competitor like Toyota.

But Stellantis’s push is a prime example of a broader market moving away from all-electric vehicles and how carmakers can quickly get hybrid vehicles — which were in high demand even before oil prices rose — to market, potentially at lower capital costs. Many automakers have already lost billions of dollars from spending heavily on EVs, including developing and producing many of the technologies.

The Jeep Cherokee, which uses Blue Nexus’ two-motor electric continuously variable hybrid transmission, and the upcoming Jeep Grand Wagoneer EREV are key launches for the automaker this year, especially as it plans to use the EREV system in its Ram pickup trucks as it tries to regain market share in the U.S. Stellantis.

“Electrification trends are pretty flat. Hybrid trends are absolutely growing,” Jeep senior vice president of brand operations Richard Cox told CNBC during a recent media event for the 2026 Cherokee. “So I think this is a big step in the right direction.”

Officials with Stellantis and the auto supplier declined to comment on the tie-ups, but sources at each of the companies, who were not authorized to speak publicly about the partnerships, confirmed the details to CNBC.

Both hybrid systems work differently. The Cherokee is a more traditional hybrid vehicle, as are many of Toyota’s models, including the Prius.

Upcoming EREVs, meanwhile, will drive as all-electric vehicles until the engine kicks in and act as a generator to power the vehicle’s electric motors when the vehicle’s battery runs out. The engine powers the electric motors rather than the vehicle itself.

Both hybrid systems use Stellantis engines and are tuned to meet the company’s own standards and driving dynamics, according to two sources with the automaker.

Both systems are expected to significantly improve the fuel economy of vehicles, including the Cherokee, which at 37 mpg combined is the most fuel-efficient, non-plug-in Jeep ever produced for the US.

“Consumers are embracing (full-hybrid electric vehicle) technology due to improvements in fuel economy, (a) broader portfolio of vehicles to choose from and no lifestyle changes required to benefit from the system,” said Eric Anderson, S&P Global Mobility associate director Americas light vehicle powertrain forecast.

Stellantis and other automakers have invested billions of dollars in recent years to develop all-electric vehicles to meet federal regulations and unwavering consumer demand, but most have scaled back those investments and are looking to hybrids to boost vehicles’ fuel economy and meet consumer expectations.

Stellantis last month disclosed a $26 billion charge related to its EV projects, while its crosstown Detroit rivals have also announced write-downs. Ford Motor It said withdrawing EV plans would record $19.5 billion in special charges General Motors It said its write-down would be $7.6 billion due to its EV changes.

Peter Tadros, president of North America electric solutions at Bosch, said the auto supplier has received an influx of inquiries for its hybrid systems as automakers look to move away from EVs and get to market quickly with reliable systems and partners.

“There is definitely a very large interest in these systems,” he told CNBC. “Hybrid sales have increased over the last few years, regardless of political leanings, regardless of what’s in the regulations. It’s a steady increase in the market.”

Led by Toyota, sales of hybrids in the US will increase from 7.3% of the market in 2023 to 12.6% last year, according to S&P Global Mobility. Sales of all-electric vehicles rose 7.5% to 8% during that time.

S&P Global Mobility expects hybrid electric vehicles to account for 18.4% of US sales this year, while all-electric vehicles are forecast to account for 7.1%.

Tadros declined to comment on any relationship with Stellantis, citing company policies, but said it is common for Bosch to work closely and partner with automakers to launch new vehicles and products.

“There is no silver bullet, and everyone is coming from different directions,” he said. “It depends on each (automaker), their capacity, where their capital equipment is and how they best utilize it, and this is their starting point.”

Bosch offers what the industry refers to as “off the shelf” components, which the company then integrates with each automaker’s specific use case. Aside from the EREV, Bosch also offers components for more conventional hybrids and plug-in hybrid electric vehicles that operate similar to EREVs but drive more like conventional gas-powered vehicles than EVs.

Stellantis, more than some other automakers, has a history of partnering with others in the industry to reduce research and development costs and capital. It has a long-standing partnership with German auto supplier ZF for transmission and axle systems.

“They often rely on supplier partners for things like that,” said Sam Abulsamid, vice president of market research at communications and consulting firm Telemetry. “The benefit is, you can take something that’s probably already been invested in, developed by a supplier. Take something off the shelf, you can bring it to market very quickly.”

According to Abuelsamid, the company lacks control over the supply chain of parts and key components that are not fully integrated with vehicle systems.

In the 2000s, as the Toyota Prius gained traction in the US, the Japanese automaker cut deals with Ford and Nissan Motor to license or use certain hybrid technologies in their vehicles. But those deals and the vehicles they spawned, such as the Ford Escape and Nissan Altima Hybrid, didn’t last long.

Blue Nexus is a joint venture established in 2019 between Japanese automotive supplier Denso and Aisin, part of the parent group Toyota Motor. It also sells electrified components such as electronic axles or e-axles and hybrid systems such as the Toyota Hybrid System II, which includes the two-motor electric continuously variable hybrid transmission used by the Jeep Cherokee.

A representative of Blue Nexus could not be reached for comment. Toyota, Denso and Aisin declined to comment or did not respond to requests for comment.