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For his last act, Marchionne will outline an EV/hybrid roadmap this week

MILAN/LONDON — Fiat Chrysler (FCA) boss Sergio Marchionne is expected to outline new plans for electric and hybrid cars in a strategy presentation on Friday, aiming to ensure the world's seventh-largest carmaker remains in the race in the absence of a merger. The 65-year-old will present FCA's strategy to 2022, his final contribution to the company he turned around and multiplied in value through 14 years of canny dealmaking. After failing to secure a tie-up he said was necessary to manage the costs of producing cleaner vehicles, Marchionne needs to show the group can keep churning out profits on its own, even as emissions rules tighten, SUV competition intensifies and worries around his succession abound. Marchionne had long refused to jump on the electrification bandwagon, saying he would only do so if selling battery-powered cars could be done at a profit. He even urged customers not to buy FCA's Fiat 500e, its only battery-powered model, because he was losing money on each sold. But Tesla's success and the need to comply with tougher emissions rules have forced Marchionne to commit to what he calls "most painful" spending. "FCA is way behind rivals in terms of hybrid and electric vehicles and they need to hit the accelerator to convince investors they can close that gap," said Andrea Pastorelli, a fund manager at 8a+ Investimenti. Germany's Volkswagen, Daimler, BMW and U.S. rivals GM and Ford have committed to spending billions of euros each in coming years to try produce profitable cars powered by cleaner fuels. FCA needs to present a clear roadmap, just like Volvo Cars, which ditched diesel from its best-selling XC60 SUV, launched a new electric brand and pledged to shift all brands to hybrid by 2019, a banking source close to FCA said, noting: "The tech divide determines winners and losers in the industry." Marchionne has already said half of the wider FCA fleet will incorporate some elements of electrification by 2022, while luxury marque Maserati will spearhead FCA's electrification drive by making all new models due after 2019 electric. But its plans remain vaguer and less advanced than most big rivals and some investors wonder about the capital required to make vehicles compliant, and what share of spending can go to electrification given FCA's numerous demands.

Stellantis to introduce hybrid versions of Fiat 500e EV, Jeep Compass

  MILAN — Fiat owner Stellantis said on Monday it would build a hybrid version of its 500e small electric car at its Mirafiori plant in Turin, Italy, amid a slowdown in electric car sales. The announcement came after Stellantis CEO Carlos Tavares met in Turin with union representatives who had long been asking the company to boost production at Fiat's historic home with a new high-volume, cheaper model. The factory currently produces the 500e model, but a global slowdown in sales of fully electric vehicles has pushed Stellantis to significantly slow production rates, introducing protracted furlough periods for the plant's workers. "Carlos Tavares recalled the importance of offering affordable and high-quality cars for Italian customers," Stellantis said in a statement. It added that developing affordable cars also depended on external factors including lower energy costs, the development of a charging network for electric vehicles, and long-term subsidies for auto purchases. The move might help the automaker improve its relations with the Italian government, which has often criticized the group for its falling output in the country and for making some of its Fiat and Alfa Romeo models abroad. Stellantis — Italy's only major automaker — and the Rome government are in talks over a plan aimed at restoring the group's production in the country to 1 million vehicles by the end of this decade from around 750,000 last year. "The shared ambition with the Italian government to reach 1 million vehicles produced in Italy by 2030, will need a supportive business environment, currently impacted by electrification uncertainties and strong competition with new entrants to the market," the automaker said. FIM-Cisl union leader Ferdinando Uliano, who attended the meeting with Tavares, said Stellantis told him and others that production of the hybrid 500e would start in the first quarter of 2026 but did not give details about targeted output figures. Automotive News Europe, which first reported the hybrid 500 production earlier on Monday, said Stellantis was aiming for total annual output of 200,000 500s, including 125,000 hybrids, compared with fewer than 80,000 last year. The Franco-Italian carmaker also said it would build a hybrid version of the Jeep Compass SUV at the Melfi plant in southern Italy, and that production of the hybrid Fiat Panda city car made in Pomigliano near Naples could be extended.

NHTSA closes investigation on 4.7M FCA power modules, no recall

FCA US hasn't had the best time with recalls as of late. Not only did the company recently agree to greater safety oversight and paid $105 million to the government, that came just days after hacking fears prompted a 1.4-million model recall campaign. However, a recent decision to close an investigation by the National Highway Traffic Safety Administration means that the automaker doesn't have to worry about another major recall possibly affecting 4.7 million vehicles, according to the agency's report (as a PDF). Last September, the Center for Auto Safety petitioned NHTSA to investigate an alleged problem with the totally integrated power module (TIPM) on these FCA US models. The group claimed that a fault with the component could cause a variety of maladies, including stalls, not starting, catching fire, unintended acceleration, and airbag non-deployment. At the time, it also submitted 70 cases where this had reportedly happened. According to NHTSA, "no valid evidence was presented in support of claims related to airbag non-deployment, unintended acceleration, or fire resulting from TIPM faults and these claims were found to be wholly without merit based on review of the field data and design of the relevant systems and components." The agency did find signs of an issue with the fuel pump relay in some Jeep Grand Cherokees and Dodge Durangos, but FCA US issued recalls for the problem in September 2014 and February 2015. Without anything else to go on, the Feds don't think it's worth investigating this topic any more.