Fiat Chrysler Automobiles (FCA) will remove all diesel-powered passenger cars from its range by 2022. According to a report published on Sunday, the Italian-American megacorporation’s plan is the latest addition to a list of companies dropping out of the slow demise of diesel.
The Financial Times reports that this move is part of a larger plan to be unveiled by FCA on June 1, 2018. The strategy, set for deployment over the next 4 years, includes all brands and makes owned by Fiat Chrysler. The source does not state specific sources, instead attributing the news to “people familiar” with the plan.
Many American and Italian Brands Will Now Join Others in Eliminating Diesel Cars
If true, this means that we will be seeing a lot less of diesel-powered cars. FCA, formed October 2014 by the merger of FIAT S.p.A. and Chrysler Group, now owns a significant number of brands. Included in this plan are Jeep, Dodge, Ram, and Chrysler (on the American side) and Fiat, Maserati, and Alfa Romeo (on the Italian side). Fiat Chrysler diesel cars will still be available by 2022.
Fiat representatives did not confirm or comment on the report.
The fall of diesel fuel has two causes. The first would be the fall in consumer demand, which took a significant drop after the 2015 Volkswagen cheating incident. Secondly, EU and US regulations regarding emissions make it increasingly difficult for manufacturers to comply. The main complaint here is that adhering to the rules turns out to be less cost-effective than scraping the whole diesel range altogether.
FCA joins Porsche and Toyota by removing Fiat Chrysler diesel passenger cars altogether. At the same time, Ford Motors doubled down on its commitment to electric vehicles with an $11bn investment.
An Exciting Time for FCA
Just last week Ford Chrysler drew praise from President Trump after announcing a $1bn investment in a Michigan plant. The move came with a $2,000 bonus to US employees and is largely due to the recent tax cuts passed by Congress.
Let’s hope this move is a good sign for lowering carbon emissions and for Fiat Chrysler. As long as they don’t have any more problems with airbags, we should be all-good.
Image source – Fiat Chrysler Facebook Page.