FCA Plans to Axe Diesel Passenger Cars by 2022: Report

FCA Plans to Axe Diesel Passenger Cars by 2022: Report

Fiat Chrysler Automobiles (FCA) is the next automaker to separate itself from diesel engines.

According to a recent report from the Financial Times, FCA will stop production of its diesel-equipped passenger vehicles by 2022 under a four-year plan that will be unveiled June 1. People familiar with the strategy said the Italian-American automaker intends to phase out diesel from the cars across its brands, which means SUVs and trucks from the Jeep and Ram brands will likely not be affected.

Diesel passenger vehicle sales currently account for about 40.6 percent of FCA’s sales in Europe, but the automaker doesn’t offer any of those models in North America. So the decision to kill off production won’t impact North American consumers.

SEE ALSO: FCA Approved to Sell its Diesel Vehicles Again

It’s the latest result of Volkswagen’s massive diesel scandal, which has caused automakers to switch gears and invest heavily into electrification, Volkswagen included. According to data from Jato Dynamics, sales of diesel vehicles in Europe fell eight percent last year, bringing its market share to 43.8 percent. Interestingly, FCA was the only major automaker in Europe to see an uptick in diesel sales last year, mostly because of its presence in Italy where diesel accounts for 56 percent of total sales.

The report says the plans only affect passenger vehicles, which means the EcoDiesel engines for FCA’s commercial vehicles, SUVs, and trucks (Ram 1500) will still be produced.

[Source: Financial Times]

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