Dealers eager to see EV plan revive Chrysler

DETROIT — Chrysler dealers got their wish.

The nearly 100-year-old brand will live on under the Stellantis umbrella, but with the twist that it will stop selling anything with an internal-combustion engine by 2028.

It's an intriguing future that comes with a series of challenges, including finding the right product mix and achieving enough volume to make the investment worthwhile.

Dave Kelleher, chairman of the Stellantis National Dealer Council, said dealers have made it clear over the years that they "think the Chrysler brand is essential, and needed to find its new life."

Now it's their chance to prove that Chrysler deserved to live on.

"Nobody wanted to see the brand die because we know that our clients would find virtually any decent car acceptable if it had the Chrysler brand on it," Kelleher told Automotive News. "To throw away a good brand like that, or to let a good brand like that pass away, would be unfortunate and not acceptable. They've just figured out a brilliant way to make Chrysler relevant because it'll lead the charge into the new EV world for Stellantis."

Kelleher believes the brand was wise to set the 2028 goal for going fully electric. By then, he expects the nation's charging infrastructure to be more developed to accommodate EVs and lessen range anxiety.

But there's angst building among some retailers about the cash they'll have to spend to install chargers, Kelleher said. Stellantis has hired Future Energy to help dealerships figure out their charging needs and is pushing for every store to go through the process, he said.

Kelleher said he's going to have his dealership, David Chrysler-Dodge-Jeep-Ram in Glen Mills, Pa., evaluated soon to get a better sense of how many chargers he needs as he prepares to build a Jeep-focused showroom and expand his service center. He's expecting to install 18 charging stations.

Beyond the Chrysler brand, Stellantis' EV push is happening even if some stores are leery about spending on more chargers. Dealerships soon will have an array of battery-electric models on their lots to complement the plug-in hybrid Wrangler 4xe, Pacifica Hybrid and incoming Grand Cherokee 4xe. Jeep's first electric model is slated to arrive in 2023, Ram's electric 1500 is scheduled for 2024 and Chrysler's electric crossover debuts by 2025.

Chrysler spotlighted its electric Airflow crossover concept this month during CES in Las Vegas in what could be a preview of the brand's first EV.

The company says the concept offers 350 to 400 miles of electric range and has Level 3 autonomous capabilities through the STLA AutoDrive system, developed in partnership with BMW.

"The brand needs help and to reinvent itself, and this is a great way to do it," Steve Wolf, dealer principal at Helfman Dodge-Chrysler-Jeep-Ram-Fiat in Houston, said of the Airflow. "I thought it was beautiful. Let's be honest. In order to be successful, you have to have product that people want. Chrysler's struggled the last few years with the lack of new products and product that people really are wanting."

Chrysler brand CEO Christine Feuell said the two-row Airflow would compete in a sweet spot of the market. The company is pondering a lineup that also could include options slotting above and below the Airflow.

"The question is for the others: Does it make sense for us to go bigger or smaller?" Feuell said. "We're trying to evaluate and prioritize not only what is best for the Chrysler brand and the direction that we're trying to go in, but what is going to best differentiate us from the other brands in the Stellantis portfolio and our key competition. So you can look for us to come out with additional offerings."

Kelleher thinks the Pacifica will get a fully electric option at some point as well, but he doesn't see a future for the 300 sedan. Feuell didn't rule out the possibility of having options in those segments down the line.

Wolf said Chrysler has been given a sense of purpose and that the brand's volume can "only go up from here" once it graduates to an all-electric lineup.

Kelleher doesn't think volume will be a concern for Chrysler. He's more worried about the margins on EVs that will be more costly to build.

Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, said a good price range for an Airflow-based crossover would be $50,000 to $60,000, in the same neighborhood as the Ford Mustang Mach-E.

Then the brand would need something smaller around $40,000 and a larger option at about $70,000, Fiorani said.

Chrysler is "trying to find its own niche," Fiorani said. "It makes sense that you would remake it as EV-only. Why not give it an EV edge and make that its attempt to stay relevant?"