Chrysler crossover EV "on hold," future of brand uncertain

Chrysler is reportedly putting an indefinite pause on its Airflow electric vehicle project, leaving it with only one model in its lineup.

Driving the news: According to a report from Mopar Insiders, the struggling Stellantis brand has put its sole EV on hold after first showcasing the vehicle in late 2021.

• The report cites an email from a Chrysler employee notifying suppliers that the Airflow project, internally referred to as C6X, “has been put on hold until further notice.” The message also advised recipients to immediately pause any spending toward the vehicle.

• While the automaker was supposed to become an EV-only brand by 2028, it currently only sells the Pacifica minivan, available as a hybrid or gas-powered vehicle.

Zooming in: The possible cancellation of the Airflow leaves Chrysler’s future uncertain, especially amidst the upheaval facing its parent, Stellantis.

• Last July, former Stellantis CEO Carlos Tavares floated the possibility of canceling unprofitable brands. “If they don't make money, we'll shut them down,” he stated. “We cannot afford to have brands that do not make money.”

• Those comments followed the release of Stellantis’ first-half financial report from last year, which revealed a devastating 48% decline in profit compared to 2023.

Looking ahead: Despite the executive’s ominous words, not only was he quick to walk his statements back amidst an immediate wave of pushback but he has also since resigned. Nevertheless, Stellantis is still facing a difficult situation.

• Sales were down 15% year-over-year by the end of 2024, with Q4 volumes dropping 7% in the U.S.

• Competition with Chinese automakers is proving to be especially troublesome. Companies like BYD have captured a significant share of their domestic market, leaving foreign manufacturers, including Stellantis, scrambling.

• With the company’s current leadership searching for a new CEO, it has had little time to set a new agenda for the future. Whether that future includes Chrysler will depend on whether Tavares’ eventual replacement shares his mindset.

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