Rahul Somvanshi
Jeep has hit the brakes on bringing its new electric Compass to American shores. The company recently paused plans for North American production of the next-generation Compass of the next-generation Compass, which would have included hybrid and all-electric versions.
“As we navigate today’s dynamic environment, Stellantis continues to reassess its product strategy in North America,” the company stated, with Stellantis confirming in its Q1 2025 call that the pause was “mostly tariff related.”
Tariffs Make the Math Difficult
The “dynamic environment” isn’t just corporate speak. New 25% Section 232 vehicle tariffs on vehicles built outside the U.S. would add between $4,000 and $8,000 to each Stellantis Jeep model, according to Reuters reporting on temporary layoffs and plant pauses at U.S. facilities. That’s a significant price bump that would either cut into Jeep’s profits or push the cost beyond what most buyers would pay.
These extra costs come at a tricky time. U.S. EV deliveries fell approximately 5% year-over-year in April 2025, even as the total market climbed 10%. Buyers are hesitating as they weigh high sticker prices against their charging-infrastructure concerns.
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What Americans Will Miss Out On
The Compass EV that Europeans will get later this year packs impressive specs. It offers three BEV versions with power ranging from 213 to 375 horsepower. The batteries come in 74 kWh or 96 kWh sizes, with the larger one delivering up to 403 miles of range under European WLTP testing standards.
That 403-mile figure would translate to about 330 miles in U.S. EPA ratings, which typically run about 22% lower than European WLTP measurements. The Compass EV also features 160 kW charging capability, 200 mm ground clearance, a 16-inch infotainment screen, and Level 2 ADAS.
Shifting Toward Affordable EVs
While the Compass EV pause might disappoint some U.S. buyers, Stellantis isn’t giving up on electric Jeeps. CEO Carlos Tavares has confirmed Jeep will introduce a $25,000 electric model “very soon” as part of Stellantis’ push to broaden EV affordability beyond premium segments.
This move toward lower-priced options makes sense when looking at market trends. The 2025 J.D. Power Electric Vehicle Experience Study forecasts that the EV share of retail sales will remain flat this year, suggesting that many buyers aren’t ready to make the switch at current price points.
A Compass for the Future
Since its 2006 launch, the Compass has sold over 1.4 million units globally by 2016. It has evolved from a gasoline-only model to one with various electrified options, showing Jeep’s iterative electrification approach.
For now, U.S. buyers interested in electric Jeeps will need to look at other models in the lineup or wait for that promised affordable option. The Compass pause reflects the real-world challenges carmakers face as they balance geopolitical policy, shifting consumer sentiment, and the need to keep prices reasonable in the growing electric vehicle market.
