Next-Gen Jeep® Compass To Share Hybrid Powertrain With Cherokee

The next-generation Jeep® Compass (J4U) has already begun rolling out in Europe, but here in North America, we’ve been left wondering when — and where — our version will hit the streets. Originally, Stellantis had plans to build the all-new Compass at the Brampton Assembly Plant in Ontario starting in 2026. Earlier this year, the company hit the brakes, saying it needed to reassess its North American product strategy.

Now, according to our well-placed sources inside Stellantis, the North American Compass will not debut as an all-electric SUV as initially planned, but could launch with the same upcoming 1.6-liter I4 hybrid powertrain that’s set to make its debut in the all-new midsized Jeep Cherokee (KM) later this year.

While Stellantis hasn’t released full details on the hybrid setup, we know it’s part of Jeep’s push to offer customers both electrification and traditional internal combustion power. In other words, you’ll get some of the benefits of an EV — like improved fuel efficiency and electric-only driving in certain conditions — without losing the range and quick refueling of a gas engine. It’s a middle ground that makes sense for drivers who aren’t ready to go all-in on battery power just yet.

Brampton’s Big Role – 

The Brampton Assembly Plant is currently in the middle of a massive $3.6 billion CAD ($2.8 billion USD) investment that Stellantis announced in May 2022 to transform both the Windsor and Brampton Assembly Plants. 

Brampton’s portion of the retooling began in 2024 and was said to wrap up in 2025, giving the plant the capability to build vehicles on Stellantis’ flexible STLA Medium platform, which can handle everything from gas-powered models to fully electric ones.

When production eventually resumes, Brampton is expected to return to a three-shift schedule — a big deal for Canadian autoworkers and a sign that Stellantis plans to make the facility a cornerstone of its North American operations. The next-generation Compass will be part of that return, alongside other yet-to-be-named models.

The ongoing trade tensions and tariffs between the U.S. and Canada have also clouded the question of when Brampton will resume operations. With so much of the North American auto industry’s supply chain and sales market crossing the border daily, even modest tariff hikes can throw production timelines into question. For Stellantis, the challenge is to balance retooling and launch plans with the unpredictable economic environment.

Why Hybrid First? – 

The decision to launch the Compass with a hybrid instead of going electric from day one likely comes down to market realities. Interest rates remain high, EV demand in North America has cooled compared to earlier projections, and buyers still want options that don’t require planning every trip around a charging station. A hybrid Compass would offer a more affordable entry point for shoppers while still checking the box for reduced emissions and better fuel economy.

We are told that Jeep will still have an electric version of the Compass down the road, but launching the hybrid first gives the brand time to refine its EV strategy — and lets customers ease into the transition. For now, this move could be exactly what Jeep needs to keep Compass sales strong in an increasingly competitive compact SUV market.