Fiat-Chrysler Automobiles, the American-Italian automotive conglomerate that controls everything from Jeep to Alfa Romeo, has apparently decided to phase out its range of oilers systematically within the next 4-years. This report was first brought to light by the Financial Times earlier this week, with FCA remaining mum on the matter.
Last year, diesel sales in Europe took an 8% dive, with total marketshare dropping to 43.8%. Historically, Europe has been the strongest market for diesel, on account of its good low-end torque and great touring range. However, following the Volkswagen diesel emissions scandal that broke in 2015, stricter emissions testing and standards have been adopted and diesel sales have progressively slowed, while development costs to make diesels leaner and cleaner have nosed upwards.
Adding salt to the wound are development costs related to electric vehicles, which have steadily reduced over time. With that in mind, it seems that FCA’s either keeping an eye on its budget or realigning itself to get on the EV trend by pushing more funds in that direction. FCA have yet to respond to the report.
FCA will reportedly retain turbodiesel mills for some of its commercial vehicles, like its RAM trucks and light-commercial vehicles offered by the group.
Stay tuned to CarShowroom as we bring you more updates as they come.
