The electric Jeep Compass may be a pipe dream after all

Jeep is reconsidering plans to launch an electric Compass in North America. The next-gen Jeep Compass is officially on pause after Stellantis temporarily halted operations at its Brampton Assembly Plant, where the current SUV is built, to take a closer look at its strategy in North America.

Is Jeep canceling the electric Compass in the US?

Stellantis froze all activities at the Brampton plant on Thursday, including work on the next-gen Jeep Compass. The company said the sudden halt was over “today’s dynamic environment.”

In an email to Ontario newspaper Windsor Star, Stellantis’s head of communications for Canada, Lou Ann Gosselin, said, “As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America.”

Gosselin added that Stellantis’s decision is “to ensure it is offering customers a range of vehicles with flexible powertrain options to best meet their needs.”

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The pause is temporary, and the decision will not impact operations at the Windsor facility. The Brampton plant has been down since December 2023 for retooling as part of Stellantis plans to build EVs, including an electric Jeep Compass.

Stellantis confirmed in October that the next-gen Jeep Compass will be available with electric, hybrid, and gas-powered powertrains as part of its “Freedom of Choice” strategy.

The Compass is Jeep’s “most globally available model,” according to Gosselin. Later this year, the next-gen model will still debut in Europe, with production slated to begin in Melfi, Italy. Stellantis previously said production would expand to North America and around the world.

Stellantis initially planned to begin building the next-gen Jeep Compass, including an electric version for North America, in the fourth quarter of 2025. Mass production was slated for 2026.

Lana Payne, Unfor national president, the union behind workers at the plant, said the “timing of this announcement raises very serious concerns.” Payne added:

The chaos and uncertainty plaguing the North American auto industry, which is under the constant threat of tariffs and a dismantling of EV regulations from the United States, are having real-time impacts on workers and corporate decisions.

Although Stellantis didn’t mention US President Trump or tariffs as a factor, Unifor Local 444 president James Stewart told the Windsor Star, “There’s no doubt the Trump administration’s EV policies are having an effect.”

Stewart explained the pause comes as Stellantis reassesses what powertrain options to offer for the next-gen Compass.

Stellantis still plans to return to a three-shift operation, aiming to start operations early next year. The plant was once home to iconic models, like the Dodge Challenger, Charger, and Chrysler 300, all of which are now discontinued. The electric Dodge Charger Daytona is made at its Windsor plant.

Jeep launched its first electric SUV in North America, the Wagoneer S, last year and will introduce the more rugged, Wrangler-like Recon EV later this year. As for an electric Jeep Compass, those of us in the US and Canada will have to wait to hear more.

Electrek’s Take

Stellantis is already struggling in North America. Sales fell another 15% last year to just over 1.3 million, with every brand, except for Fiat, selling significantly fewer vehicles.

Jeep brand sales fell 9% in the US, Ram sales fell 19%, Dodge sales fell 29%, Alfa Romeo sales fell 19%, and Chrysler sales were down 7% in 2024.

Although Trump’s tariffs threats are likely one of the biggest reasons behind Stellantis’s decision, it will likely only put it back further in the long run. The industry will still progress toward electric vehicles, while automakers stalling now will get left behind with more advanced, software-driven models from China, South Korea, etc.

Behind the Cherokee and Wrangler, the Compass was Jeep’s third best-selling vehicle in the US last year. Sales were up 16% to nearly 111,700, but Jeep will need an answer soon with new electric options hitting the market over the next few years.