Hyundai, Ford and Stellantis plan US extended-range EVs

Plug-in hybrids have struggled in US market, analysts note

Stellantis, Hyundai, and Ford are preparing extended-range electric vehicles for the U.S. market, pairing full EV drivetrains with gasoline-powered generators designed to recharge the battery without ever driving the wheels. Stellantis said its Jeep Grand Wagoneer SUV would arrive later this year or early next, aiming to kick off the EREV trend in the U.S., followed by a Ram 1500 REV pickup promising up to 690 miles of total driving range. Hyundai announced in late August that its next Santa Fe SUV will offer an EREV in 2027, with about 600 miles of total driving range.

Unlike a conventional plug-in hybrid, an EREV is built first as an electric vehicle. Its battery is charged by plugging in and supplies power to an electric motor that drives the wheels. The gasoline engine’s sole function is to drive a generator that supplies electricity to the battery when the charge runs low. The gas engine has no mechanical connection to the wheels.

Stellantis plans to launch the Jeep Grand Wagoneer EREV “later this year or early next,” said Micky Bly, the automaker’s head of propulsion systems. The Ram 1500 REV pickup will follow, with a gas V-6 generator recharging the large EV battery. The truck is described as promising up to 690 miles of total driving, more than twice the typical EV range in the United States. “It is simply a good answer,” Bly said.

Hyundai announced in late August that its next Santa Fe SUV will offer an EREV version in 2027, promising about 600 miles of driving. The company’s luxury brand Genesis will offer a similar vehicle, Hyundai said. Ford, which canceled its money-losing electric F-150 Lightning truck in December 2025, said it would resurrect that truck as an EREV.

The vehicles represent a fresh attempt to crack a U.S. market where earlier plug-in hybrids have struggled. The first mass-market EREV in the United States was General Motors’ Chevrolet Volt, built from 2011 to 2019, which delivered about 50 miles of battery-only driving. Conventional plug-in hybrids before and since have offered far less: the discontinued Subaru Crosstrek plug-in managed 17 all-electric miles, and the discontinued Jeep Wrangler plug-in offered about 20 miles.

Plug-in hybrids have never accounted for more than one or two percent of U.S. new-car sales, industry researchers said. Some buyers purchased them for perks such as access to high-occupancy-vehicle lanes in California, said Ed Kim, president of the research firm AutoPacific. Others seldom plugged them in. “A consumer isn’t going to buy what they don’t understand, and that I think has been the central issue behind plug-in hybrids’ relative lack of adoption here in North America,” Kim said.

The new EREVs will offer more than 100 miles of all-electric range, meaning most drivers should rarely have to put gas in them, said Sam Abuelsamid, an engineer and analyst at the Detroit research firm Telemetry. The setup saves some battery cost compared with a full EV and eliminates the need for gas-car parts such as a transmission. EREVs also drive like EVs, including instant acceleration even when the battery draws from the generator.

The technology push comes as the auto industry navigates a retrenchment from a target of a mostly electric market by the 2030s. Billions of dollars in stranded investments followed the failure of customer adoption to meet earlier projections. EV sales have remained depressed since the Trump administration removed a $7,500 federal incentive last year and rolled back regulations aimed at pushing the market toward electrification.

Two primary concerns have kept Americans from buying EVs en masse: the higher cost of battery-powered cars and anxiety over charging availability. In theory, EREVs address the range and charging problem while offering other advantages for larger vehicles such as three-row SUVs, which require large batteries that can struggle with long recharge times. EREVs are popular in China’s auto market, where both Ford and General Motors offer them in vehicles not sold in the United States.

Analysts said consumer education will be a major challenge for the new category. “Now we’re throwing in another layer of complexity and oddity,” said Ivan Drury, director of insights at car-shopping site Edmunds. “There’s going to be a major level of education required.”

Abuelsamid said EREVs could also use gas to tow heavy loads without running out of range. Towing has been a key reason larger electric trucks such as the F-150 Lightning and the Chevrolet Silverado EV failed to sell in large numbers. “You’re not really sacrificing anything in terms of how far you can tow, how long you can tow,” Abuelsamid said.

Nick Phucas, a mechanical engineer in Virginia, recently traded a Rivian EV truck for a Ram gas pickup. Phucas said the EREV concept is intriguing but said he wonders whether the truck’s performance will be compromised when it relies on the gas generator. Other unknowns remain, he said. “If I get to the end of my (EV) range and I refill with gas, what will my range be?” Phucas said.

Bly said that while the industry spent years racing toward full EVs to meet government regulations, EREVs may represent a middle-ground solution that customers are happier with. At the same time, analysts and engineers said, EREVs will likely cost more than comparable gas vehicles and possibly more than full EVs. “Customers won’t reject them, but will they pay you extra for it?” said Dan Nicholson, a former General Motors vice president who now works as a consultant. “That remains to be seen.”