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FCA Flips Electric Switch | Industry content from WardsAuto
Bob Gritzinger


Fiat Chrysler Automobiles likely will look to electrify more of its vehicles as diesels fall out of favor as a means of meeting global emissions and fuel-economy standards, CEO Sergio Marchionne suggests.

Admitting he has reversed his stance on electrification, Marchionne tells media and analysts during the automaker’s second-quarter financial report his “aversion” to electrification was based on the development costs associated with the powertrains compared to other options, such as diesels.

“What makes it mandatory now is the fate of diesels,” Marchionne says, noting the rise in “anxiety” around diesels and emissions compliance, which ultimately will result in weaker support for diesel going forward.

Marchionne doesn’t specify a timetable for electrifying FCA’s portfolio, and he remains concerned about development costs and managing variable costs for key components such as batteries.

“If the cost of batteries doesn’t come down, there will be a huge increase in pricing in 2022 and that will cause shrinkage in demand,” he warns.

Currently, FCA offers just two electrified vehicles, the Chrysler Pacifica Hybrid minivan and the Fiat 500e battery-electric small car. WardsAuto forecasts electrified vehicles and pure EVs will account for just 10,771 (0.63%) of the company’s total U.S. sales in 2022, but that number rises to nearly 81,000 vehicles (5.34%) by 2024.

Maserati will be among those electrified products, with 50% of the brand’s portfolio electrified by 2022, Marchionne says.

Meanwhile, FCA’s light-duty diesel vehicles, the Ram 1500 and Jeep Grand Cherokee, remain under scrutiny by the EPA and CARB for violating emissions standards. Marchionne says progress is being made on the issue, but he is unable to announce a resolution.

“I’m relatively sure we can get the U.S. position rectified in relatively short order,” he says.