Fiat Chrysler Automobiles (FCA) is to stop making diesel cars by 2022—the latest top 10 carmaker to call it quits on the controversial fuel.
The Italian carmaker that is controlled by Exor, the investment vehicle of the Agnelli family who have a 29% stake in FCA, said it would stop making diesel cars due to falling demand and spiralling regulatory costs, according to media reports.
In its 2017 annual report, FCA noted it was currently cooperating with diesel emissions investigations in the US and several European countries and is subject to a number of related private lawsuits in the US.
FCA, which owns 11 automotive brands including Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Maserati, said it was not giving a comment on the speculation.
Reports of FCA’s decision to drop diesel production follow similar announcements by family-controlled top 10 carmakers, Porsche and the world’s second largest carmaker, Toyota.
Porsche, part of the VW Group controlled by the third generation of the Piech family, said this month that it would stop selling diesel cars, including its SUV range.
In September 2017, Didier Leroy, Toyota’s executive vice-president said it was highly unlikely to launch another diesel car although he did not specify a final date when production of diesel vehicles would stop. Toyota posted revenues of $248 billion in 2017.
The industry-wide move away from diesel follows in the wake of the 2015 VW emissions scandal when the family-controlled company admitted to fitting millions of cars with special software that allowed them to cheat emissions tests.
The carmakers' decisions came before Germany’s top administrative court ruled that German cities have the right to ban diesel cars to improve air quality.
Volkswagen Group sales revenues in 2017 were up 6% to €231 billion ($277 billion), Porsche reported 2016 revenues of €22.3 billion. FCA posted 2017 revenues of €111 billion.