Stellantis and Ford Launch Extended-Range Electric Vehicles to Address EV Range Concerns
In response to slow adoption of all-electric vehicles in the U.S., Stellantis (STLA) and Ford (F), along with Hyundai, are developing extended-range electric vehicles (EREVs). These models use a battery for primary power but include a small gasoline engine that acts as an onboard generator. Stellantis plans to launch EREVs like the Jeep Grand Wagoneer later this year or early next, followed by the Ram 1500 REV with up to 690 miles of combined range. EREVs aim to address consumer concerns about charging infrastructure and long-distance travel while maintaining electric driving benefits. The strategy allows Ford and Stellantis to target buyers who are hesitant toward full EVs but still want electrification options, especially for practical uses like towing. However, the success of EREVs remains uncertain as plug-in hybrids have historically had limited market penetration in the U.S. The added complexity may increase vehicle costs, potentially deterring price-sensitive consumers despite improved range and flexibility. Both automakers must prove that customers will adopt this new technology over traditional gas or hybrid vehicles to justify their investment.
Topics: automaker strategy electric vehicles EREVs range anxiety