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.

Topics: fca

If you liked the article, share on:

Comments

Recommended

Here comes Blue Arrow, a Porsche 911 (991) Turbo S tuned by Edo Competition that is even quicker and faster than the 911 GT2 RS. Moreover, it is definitely the...
by - July 24, 2017
Earlier this year, Ford had already begun deliveries of the Ford GT. However, the company has been experiencing some delays at their facility in Canada. This means that the next...
by - July 24, 2017
BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries