If a recent report is to be considered accurate, Fiat Chrysler will kill off diesel engines in their passenger cars by the year 2022 as a result of poor demand as well as recent scandals.
According to the Financial Times, FCA, who owns Chrysler, Jeep, Ram, Dodge, Fiat, Alfa Romeo and Maserati, will begin phasing out the oil burners under a four-year plan, scheduled to be unveiled on June 1st of this year.
While the Italian automaker has so far declined to comment on the report, the information comes from people who allegedly are familiar with the strategy.
Ever since the VW emissions scandal, diesel engines have been a lot less dominant when it comes to market share, especially with all the recent political opposition and plans by multiple cities to ban the technology altogether in the near future.
Based on a study by Jato Dynamics, diesel sales in Europe went down 8% last year, taking the market share to 43.8%. Now, industry estimates suggest that in order for diesels to meet strict new EU rules, costs will be roughly 20% higher, thus making the cars less affordable. Meanwhile, costs on electrified vehicles have begun to drop.
However, if FCA does pull the plug on their diesel-powered passenger cars, commercial vehicles and pick-up trucks such as the Ram 1500 are expected to endure.
Ironically, FCA was the only large automaker in Europe last year to see an increase in diesel sales, partly because of the Italian market where the fuel type accounts for 56% of sales.