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26 February 2018

Fiat-Chrysler to ditch diesel cars by 2022

One of the world’s largest car companies has signalled that it is getting ready to stop making diesel cars.

The Financial Times has reported that Fiat-Chrysler will unveil a new four-year plan this year that will lead to the phase-out of the fuel across all its models.

It is thought that falling demand and increased compliance costs have led to the decision. Data from intelligence company Jato Dynamics found diesel sales were down 8 percent in Europe over the past year.

The automobile industry has also faced a tough new regulatory environment since the Volkswagen emissions scandal in 2015. The German manufacturer was found to have intentionally fitted its cars with software to make them compliant with emissions standards during testing. Only last week, Porsche announced similar plans to stop production of all its diesel cars.

Electric vehicles have also become more attractive to car companies as the pressure to make the transition to cleaner forms of transport becomes more intense. Bloomberg New Energy Finance predicts EVs will account for over 50 percent of all new car sales by 2040.

The move from Fiat-Chrysler is significant due to its size as the eighth largest automobile manufacturer in the world. The Italian-American company, newly merged as of 2014, is responsible for producing the Jeep, Ram, Dodge, Maserati, and Alfa Romeo models, among others.

Morten Thaysen, a campaigner at Greenpeace said the news will “send shock waves through the boardrooms of car companies like VW”.

“Demand for diesel is nosediving as people realise its links to air pollution and the scale of cheating by car companies in emissions tests. Across Europe, diesel is facing many city-wide bans or charges, so as a consumer you’d be taking a huge risk to buy a diesel car now. The future of the car industry is in electric vehicles, which will help to combat illegal air pollution and climate impacts". 

 

Photo: FCA

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