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Chrysler Putting Some EV Plans on Hold

Chrysler is the latest automaker to confirm that it is rethinking its push to go electric after Donald Trump was elected. Trump is not a fan of forcing people to buy electric vehicles, especially through harsh mandates.

The irony is overwhelming with the incoming Trump administration. Even though the recently elected president is very close with Tesla owner Elon Musk, the new president is not a fan of forcing people to abandon gas-powered vehicles. Trump has also been known to use the phrase “Drill, baby drill!” when he is questioned about energy policy. It should come as no surprise that many of the automakers are delaying or reconsidering plans to produce electric vehicles. It appears the Chrysler Airflow EV is one of the latest casualties.

Chrysler Airflow Concept

The Chrysler Airflow was introduced at CES, in January of 2022, to great fanfare. As I reported then, the midsize EV promised the latest technology and would have been the Chrysler brand’s first battery electric vehicle. The Airflow was especially important because Chrysler dealers desperately need products to sell.  The brand discontinued the Chrysler 300 and now only offers minivans.  The Airflow Graphite model was shown at the New York Auto Show that spring. Chrysler did indicate later that the Airflow name would be changed before it came to market. Then all talk about the Airflow seemed to stop. Now, it appears that the midsize SUV EV has been tabled indefinitely.

Suppliers Warned to Stop Work on EV

According to a report in Mopar Insiders, Suppliers have been sent an urgent email telling them that the plans for the vehicle have been suspended indefinitely.

“Dear Supplier,

The C6X (CA) program has been put on hold until further notice. Therefore, any spending associated with this program should be suspended immediately.”

I am not surprised by the latest developments. Privately, nearly all of the automakers have said that the mandates to increase fuel economy are unrealistic and that the EVs are just not capable of the range that most buyers want in a vehicle. GM recently backed out of a battery plant agreement because the company doesn’t see a huge demand for more batteries. As I recently reported, one of the first things that Tim Kuniskis did when he returned to run the Ram brand was, he delayed the production of the Ram REV EV pick up. Instead, Kuniskis announced that Ram would pull ahead production of the Ramcharger extended range hybrid pickup. Kuniskis says that there is a much bigger demand for the longer-range vehicle, rather than the BEV.

Uncertain Future

There has been a recent uptick in EV sales as buyers have rushed to take advantage of the government EV rebates. President-elect Trump has indicated that he wants to do away with the rebates. It is expected that demand for EVs will plummet once the rebates are removed and mandates are relaxed.

I’m sure we will hear of many more delays in product development in the near future as automakers concentrate on the models that are producing profits rather than EVs that are a drain on the bottom line. Product development is expensive and the companies are wise to make profits while they can until the next big EV push arrives.

Chrysler Photo

Mary Conway is a professional automotive journalist and has decades of experience specializing in automotive news analysis. She covered the Detroit Three for more than twenty years for the ABC affiliate, in Detroit. Her affection for the Motor City comes naturally. Her father ran a gas station while Mary was growing up, in Wisconsin.

Follow Mary Conway at @MaryConwayMedia and send her car news tips for future stories.