Jeep's New Cherokee Hybrid Is Part Toyota

Following the end of Jeep's 4xe lineup of plug-in hybrids, a new kind of hybrid has debuted. The new Cherokee is exclusively sold as a hybrid, and a new CNBC report alleges that Jeep is using the same supplier as Toyota for its crucial hybrid system. It's not uncommon for minor parts to be from the same supplier in the automotive industry, but automakers tend to prefer to use their own tech and parts for critical components like a hybrid system. Not only does this help them stand out against competitors, but it also ensures critical components are kept from those same competitors.

The Cherokee is a notable exception, but the logic is all based on where consumers are putting their money. “Electrification trends are pretty flat. Hybrid trends are absolutely growing,” Richard Cox, Jeep senior vice president of brand operations, told CNBC. “So I think it was a big move in the right direction.” Sources the outlet spoke with inside the brand confirmed that the Cherokee's new hybrid electric transmission is shared with Toyota products through a supplier, Blue Nexus, though Stellantis would not publicly confirm that.

Consumer demand has trended towards hybrids for a while, and as Cox points out, away from EVs. The end of federal tax incentives for EVs last year has only compounded this trend, and many automakers are now looking to chase the trend and bolster their hybrid lineups after writing off huge charges for EV investments. Ford's write-down totaled some $19.5 billion. Stellantis' own write-down cleared $26 billion, and GM's totaled some $7.6 billion.

Suppliers are seeing the shift in trends, too. Bosch's President of North America Power Solutions, Peter Tadros, told CNBC it has seen an "influx" of inquiries into its hybrid systems. Automakers are looking to get hybrids to dealers quickly, and that means turning to "ready-made" hybrid components from major suppliers like Blue Nexus and Bosch.

Politics, says Tadros, has little to do with it. Despite recent walkbacks on greenhouse gas regulations by the Trump Administration or the inverse from the previous Biden Administration, hybrids are a growing segment for consumers: “What’s been very apparent over the last few years is hybrid sales have increased regardless of what’s in the regulations, regardless of the political leaning. It’s been a consistent increase in the market.”

Hybrids, like their fully electric counterparts, still represent a relatively small portion of sales for automakers, many of whom are still capitalizing on the simplicity and cost-effectiveness of gasoline engines. However, the segment's growth is something automakers are clearly watching closely. Hybrid market share continues to climb despite political shifts, which points towards a strong future for the more efficient powertrains.