Trump's EV incentives halted, Stellantis curbs US production

The group formed from the merger between FCA and PSA has announced its intention to reduce the production of electric and plug-in hybrid cars in the American market, shifting its focus to gasoline-powered models and more traditional hybrid versions. This decision isn't a surprise, but a direct reflection of the Trump administration's policies, which ended federal incentives for those purchasing zero-emission vehicles.

The $7,500 tax credit, introduced to support EV and PHEV sales, had been a key driver of industry growth. However, its elimination radically changed the landscape, leaving manufacturers and consumers facing higher prices and less convenient purchases. Stellantis, unlike other competitors, has chosen to respond with a strategy that prioritizes immediate profitability, reorienting its portfolio toward solutions that guarantee stronger margins.

It's no coincidence that the group has decided to reintroduce the famous Hemi V8 engine on Ram pickup trucks in the United States, a symbol of American power and tradition. This choice appears to go against the grain of electrification, but it taps into real market demand, particularly in a country where consumers are less sensitive to sustainability issues unless supported by incentive policies.

The new Stellantis CEO, Antonio Filosa, has a clear vision : adapt to local conditions with a "multi-energy" strategy. This means developing flexible platforms capable of accommodating various fuel types—petrol, hybrid, and fully electric—while letting the market decide which technology to favor. This approach, at least in the United States, is temporarily slowing electric vehicles. However, the slowdown does not signal an abandonment of the green path.

Stellantis remains committed to electrification globally , as demonstrated by its investments in Europe and Asia. But the American challenge requires pragmatism: without incentives and with declining demand, EV and plug-in sales volumes risk not justifying production efforts. The Stellantis case thus raises a broader question about the future of sustainable mobility in the United States.

While Europe continues to push forward with stringent regulations and ambitious goals, political choices overseas appear to be redrawing the path. The question is whether the American market is ready to face the transition challenge alone, without public support. For now, the answer appears to be negative, and Stellantis is only the latest major automaker to acknowledge this.