Why Is The Chrysler Airflow EV Now On Ice?

By Imran Last updated Jan 16, 2025

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Stellantis has not precisely been main the way in which on EVs within the USA. It sells virtually no electrical automobiles. Right here’s the newest rating of what share of an automotive group’s gross sales got here from EVs within the US:

Yikes! 0.1%. That’s horrible.

Ultimately issues have to show round, and the most recent information is that’s going to be later with Chrysler. After introducing a brilliant cool trying Chrysler Airflow EV idea in 2022, work on the EV went into hyperspeed. Oh, no, sorry, it apparently went nowhere, or at the very least didn’t go very far. And reporting this week is that the Chrysler Airflow EV has been fully placed on ice indefinitely. The road from Stellantis is that the mission “is paused for now as we assess the market and our prospects’ wants and needs,” Inexperienced Automotive Stories studies.

The Airflow title is a historic title at Chrysler, extending again into the Thirties. It could look like 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 feel 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 couple of different issues to debate as nicely.

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 facet, 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 feel 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 Legislation can be eradicated or modified, and whether or not Donald will reignite his battle with California over air high quality and gas financial system requirements. Not having a clue what is definitely going to occur with all of these issues, it’s positively onerous forecasting what is going to occur within the US EV market within the subsequent few years. So, unsurprisingly, any auto firm engaged on EVs might need to wait a couple of weeks and see the place issues head.

Nevertheless, it may’t solely be about that. One other issue is Stellantis appears to be in a little bit of bother, even resulting in CEO Carlos Tavares resigning in current weeks. Gross sales usually are not doing nicely, together with within the US. If the corporate is attempting to get its home so as once more and desires to interact in some deep rebuilding, mission trimming, and soul looking, it could make sense that any non-urgent tasks could be placed on maintain. Heck, it might even be actually unhealthy and Stellantis could possibly be contemplating pulling some manufacturers out of adverse 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?

Nevertheless, to shut, one factor is definite: EVs are getting many extra gross sales, comparatively talking, in premium-class segments. Premium manufacturers are seeing a good portion of their gross sales come from electrics — even within the US — and you actually need to have good electrical automobiles and SUVs in the marketplace as a way to maximize your potential should you’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 intervening time. But it surely has the chance to develop quite a bit with the revived Airflow mannequin as a contemporary, slick EV. Ranging from virtually 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 in all probability simply comes all the way down to that combination of points famous above — broader firm challenges, a change of management and the whole lot being in limbo, and incoming President Trump campaigning on an anti-EV agenda. Or is there one thing else I’m lacking?