Fiat Chrysler to stop making diesel cars by 2022

Some Fiat-Chrysler models

Negative publicity and tighter air quality rules look to be strangling the production of diesel-engined private cars, whereas hefty subsidies are on offer for electric vehicles.

Collapse in demand and rising costs lie behind decision, says The Week.

The car-maker Fiat Chrysler has announced it will stop producing diesel passenger vehicles by 2022, as costs spiral and demand falters.

The Italian-American firm – which owns the Jeep, Ram, Dodge, Chrysler, Maserati, Alfa Romeo and Fiat marques – made its announcement days after Volkswagen-Porsche said it will drop diesel, and months after Toyota said it will not create a new diesel model.

Diesel was once the most popular fuel in Europe, says the Financial Times, but its popularity has declined drastically because of rising public and political opposition, which includes plans by several European cities to ban it completely.

Sales of diesel fell by 8% last year in Europe, says the newspaper – and its share of the fuel market on the continent is now 43.8%.

The other factor behind Fiat Chrysler’s decision is the rising cost of meeting increasingly tight emissions quotas – it is estimated that developing diesel engines to meet new rules will add 20% to the cost of production.

Source: Fiat Chrysler to stop making diesel cars by 2022 | The Week