FCA is in talks with other carmakers to share the development costs of new vehicles

Article by Christian A., on January 16, 2015

Fiat Chrysler Automobiles is holding discussions with other carmakers to share the development costs of new vehicles and technology, particularly to reduce greenhouse gas emissions, FCA chief executive Sergio Marchionne said at the Detroit auto show. Marchionne noted that the development costs being incurred by carmakers are well in excess of what he considers “a mature industry to be able to afford."

While deflected questions on whether FCA was holding merger talks, he remarked that the carmakers' relatively low stock values mirror’s investor views that automakers are wasting capital building their own versions of commoditized technologies like the hardware for four-cylinder engines.

There have been media reports suggesting that FCA was in talks with PSA/Peugeot-Citroen and Volkswagen over possible partnerships. FCA’s disclosure last year of a plan to spin off Ferrari led to speculations that Italian carmaker would seek another merger partner, possibly to allow it to better compete in Asia.

According to Marchionne, Ferrari will stay put with its policy of keeping output below market demand, dismissing rumors that the supercar unit might substantially hike sales following the spin-off. Marchionne also called on the United States government to ease fuel economy targets for 2025.

By that year, the US will require carmakers to have fleet average fuel economy of 54.5 miles per gallon of gasoline. Marchionne noted that customer now have less reason to pay more for advanced fuel-saving technology as gasoline prices dropping to $2 a gallon or less.

With the US Environmental Protection Agency set review the fuel economy targets by 2018, Marchionne is expecting other carmakers to lobby the EPA to extend the timetable for achieving the 54.5 mpg goal as well the corresponding target for carbon dioxide emissions.

If you liked the article, share on:

Topics: fca

Comments

Recommended

After months of previewing the e-tron all-electric sports utility vehicle through prototypes wrapped in bright orange and black camouflage, Audi has finally unveiled the final production version of the SUV...
by - September 20, 2018
There have been no straight six-cylinder engines at Fiat Chrysler Automobiles since 2007, when Jeep launched the Wrangler JK generation. While Chrysler had been using straight six-cylinder engines since 1964,...
by - September 19, 2018
Mercedes-AMG’s GT 4-door Coupe models now have a new member, in the guise of the AMG GT 43 4MATIC+. This new model is AMG’s newest entry-level offering, with a price...
by - September 18, 2018
It is better not to expect any new diesel engines from Cadillac, the luxury vehicle division of General Motors. After all, following much considerations of a number of factors, the...
by - September 18, 2018
BMW Group has a grand plan to launch 25 new electrified vehicles by 2025. Twelve of these will be full electric vehicles (battery EVs), including a new electric SUV that...
by - September 18, 2018