Why Is The Chrysler Airflow EV Now On Ice?

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Stellantis has not precisely been main the way in which on EVs within the USA. It sells nearly no electrical automobiles. Right here’s the most recent ranking of what share of an automotive group’s sales came from EVs in the US:

Yikes! 0.1%. That’s horrible.

In the end issues have to show round, and the most recent information is that’s going to be later with Chrysler. After introducing a super cool looking Chrysler Airflow EV concept in 2022work on the EV went into hyperspeed. Oh, no, sorry, it apparently went nowhere, or not less than didn’t go very far. And reporting this week is that the Chrysler Airflow EV has been utterly placed on ice indefinitely. The road from Stellantis is that the mission “is paused for now as we assess the market and our customers’ needs and wants,” Green Car Reports stories.

The Airflow title is a historic title at Chrysler, extending again into the Thirties. It might seem to be a daring and optimistic transfer to carry out an electrical Airflow, and would seemingly sign optimism round EVs at Stellantis and an try and do one thing critical, like with Ford electrifying a brand new Mustang and the F-150. So, what occurred? Why is the Chrysler Airflow EV now on ice?

I believe it’s best to shortly assume that is all concerning the incoming president, and I do suppose that comes into play, however there are a number of different issues to debate as properly.

Okay, let’s begin with the apparent one. Donald Trump (aka “Don the Con” Trump) has been very anti-EV, even with Elon Musk by his aspect, and appears intent on hurting the US EV market when he will get into workplace. We’ll see. Nobody actually is aware of what Donald will do, together with Donald himself a lot of the time, so I believe everyone seems to be ready to see if the US EV tax credit score will actually be killed, if key pro-EV insurance policies from the Inflation Discount Act and Bipartisan Infrastructure Regulation shall be eradicated or modified, and whether or not Donald will reignite his battle with California over air high quality and gasoline economic system requirements. Not having a clue what is definitely going to occur with all of these issues, it’s positively arduous forecasting what is going to occur within the US EV market within the subsequent few years. So, unsurprisingly, any auto firm engaged on EVs could wish to wait a number of weeks and see the place issues head.

Nonetheless, it might’t solely be about that. One other issue is Stellantis appears to be in a bit of troubleeven resulting in CEO Carlos Tavares resigning in latest weeks. Gross sales usually are not doing properly, together with within the US. If the corporate is making an attempt to get its home so as once more and desires to interact in some deep rebuilding, mission trimming, and soul looking, it might make sense that any non-urgent initiatives could be placed on maintain. Heck, it may even be actually dangerous and Stellantis might be contemplating pulling some manufacturers out of inauspicious markets.

Or maybe it’s only a case that, till new management will get in and rearranges the workplace furnishings, something non-urgent is being placed on maintain. Who is aware of?

Nonetheless, to shut, one factor is for certain: EVs are getting many extra gross sales, comparatively talking, in premium-class segments. Premium brands are seeing a decent portion of their sales come from electrics — even within the US — and you actually need to have good electrical automobiles and SUVs available on the market with a view to maximize your potential if you happen to’re a premium model. 20% of Cadillac’s gross sales are EV gross sales. 16% of BMW’s gross sales are EV gross sales. 12% of Audi gross sales and 10% of Mercedes gross sales are pure EV gross sales.

Chrysler is just not the model it as soon as was. It’s solely promoting minivans within the US in the meanwhile. But it surely has the chance to develop lots with the revived Airflow mannequin as a contemporary, slick EV. Ranging from nearly nothing, it has the potential to extra simply make the transition to EVs amongst legacy manufacturers. The chance appears apparent, and notable, so it’s a bit shocking to see the Airflow EV idea’s mission being suspended.

But it surely most likely simply comes all the way down to that combination of points famous above — broader firm challenges, a change of management and all the things being in limbo, and incoming President Trump campaigning on an anti-EV agenda. Or is there one thing else I’m lacking?