A claim against auto insurance AND home insurance? A careless driver may be the least of your clients’ worries - that is if they drive certain four-wheel drive models. And if you have clients that drive a hybrid Jeep - now might be a good time to let them know you’re thinking about them...
Stellantis NV is recalling hundreds of thousands of plug-in hybrid Jeep SUVs across North America, including tens of thousands in Canada, after nearly 20 incidents of battery fires raised alarm over the safety of the popular Wrangler and Grand Cherokee 4xe models.
The automaker is advising owners to park the vehicles outdoors and avoid charging them until repairs are completed. The recall affects 2020–2025 Jeep Wrangler 4xe models and 2022–2026 Grand Cherokee 4xe vehicles, both equipped with high-voltage battery packs built by South Korean supplier Samsung SDI.
Transport Canada said it is monitoring the recall through coordination with the U.S. National Highway Traffic Safety Administration (NHTSA) and Stellantis’ Canadian operations. The company told regulators that it has identified 19 fire incidents globally, including several in vehicles that had already received recall software updates under an earlier campaign.
“This is an expanded action based on additional data and field events,” Stellantis said in a statement. “A remedy is being finalized, and owners will be notified when they can bring their vehicles in for service.”
The fire risk stems from potential damage to internal separators within the lithium-ion cells, which can lead to electrical shorts and overheating when the battery is fully charged. Stellantis said it is working with Samsung SDI to confirm root causes and update diagnostic software to detect abnormalities before thermal runaway occurs.
Canadian Jeep dealerships are expected to begin owner notifications later this month, with parts and updated control software to follow. The company has advised drivers to unplug vehicles immediately and avoid storing them inside garages or enclosed structures.
The latest recall includes vehicles previously covered under a 2023–24 campaign for a similar issue. Stellantis confirmed that some of those earlier repairs were incomplete, prompting another round of notifications. Regulators noted that the original fix — a software update designed to identify battery cell imbalances — failed to catch certain failure modes.
In its latest filing, the company acknowledged that nine of the 19 reported fires occurred in vehicles that had received the earlier software patch.
For Canadian owners, Stellantis recommends checking their vehicle identification number on the Mopar recall website or contacting customer care for verification. The company’s customer service line for Canada is 1-800-465-2001.
While the number of incidents remains small, the case highlights a growing area of concern for insurers and brokers: the fire risk associated with plug-in hybrid and electric vehicle charging. Lithium-ion batteries, when damaged or improperly monitored, can ignite spontaneously even when the vehicle is off.
Property underwriters have become increasingly cautious about these exposures, particularly in multi-unit dwellings and commercial settings where EVs may be charged indoors. The Insurance Bureau of Canada has previously warned that high-energy battery fires can produce toxic gases and are difficult to extinguish, raising questions about loss severity and subrogation potential.
For brokers, the Jeep recall offers a tangible example of how technological complexity in modern vehicles can lead to cascading claims risk — not only for auto policies but also for homeowners and commercial property coverage when charging is involved.
The recall also comes as automakers push to accelerate the transition to electrified fleets. Stellantis, whose brands include Jeep, Ram, Chrysler, and Dodge, has committed to investing about US$13 billion in U.S. and Canadian operations as part of its “Dare Forward 2030” electrification strategy.
Industry observers say such recalls underscore the tension between the pace of innovation and the maturity of risk management frameworks. “As electrification scales up, manufacturers, regulators and insurers are learning in real time,” said one Canadian risk consultant familiar with automotive recalls.
For now, Jeep’s plug-in hybrid owners in Canada face a familiar warning: park outside, don’t charge, and wait for the fix. The bigger challenge for the insurance sector will be adjusting underwriting and risk models fast enough to keep up with an evolving technological landscape.
