Demand problems are still being discussed, which don't make sense. If demand for EVs is so finite, then why are the other automakers scrambling to enter this supposedly niche market?
1) Because China's 28 million new vehicle market has a ZEV mandate, which will require sales of at least 560,000 or more PEVs every year.
1) Because US ZEV states have something like a 6.8 million new vehicle market, which will require sales of 161,500 plug-ins next year.
2) Because China's 28 million market and US ZEV states' 6.8M markets are going to have ZEV mandates ramp up every year until 2025. I'm not sure how China's rules work on PHEV share, but US ZEV rules are increasingly making PHEV unattractive.
3) Because the EU market is going to have tougher fuel economy standards from next year and those will get even tougher over the next few years.
4) Because diesel sales have reduced significantly in the EU+EFTA market and that has forced manufacturers' hands.
The "commitments" from manufacturers came after China announced its ZEV mandate. The combined impact is large enough that half-hearted efforts will quickly become very expensive (credit purchases, rebates), and also risks medium to long-term impact as falling costs of electrification grow demand.
Whatever manufacturers think about electrification, the regulatory environment is forcing their hand. FCA has found out the hard way.
