Fiat Chrysler to Cease Producing Diesel Vehicles by 2022

The car manufacturer behind brands such as Alfa Romeo, Maserati, Dodge, Jeep, and Ram plans to eliminate diesel engines from all its passenger vehicles in 2022. Fiat Chrysler’s announcement came last February 26, Thursday, amid a dramatic drop in demand and skyrocketing costs for the powertrain. The auto brand also announced that it will unveil a four-year plan on June 1 that details how it will phase out diesel engines from its lineup.

For decades, governments and carmakers have promoted diesel as a more viable alternative to gasoline because it's cheaper, provides more mileage, and produces less CO2 emissions. But the fuel type went through a 'falling from grace' of sorts ever since Volkswagen admitted to cheating the emission results in 11 million diesel vehicles.

A list of other automakers--Fiat Chrysler Automobiles (FCA) included--have been accused of similar malpractice. The car company recently reached a settlement with the US Department of Justice regarding its emissions cheating lawsuit. As part of the settlement, the car brand will recall 104,000 of the vehicles it has sold over the years. FCA will also have to pay a hefty fine, but the actual amount has been unspecified.

Meanwhile, more than handful of countries have announced that they will implement a complete ban on diesel. India, Ireland, Germany, and the Netherlands will implement the ban in 2030. Britain and France will follow suit in 2040. China has already implemented a ban on 533 specific diesel models starting this year.

In turning its back on diesel, FCA will instead focus on electric vehicles. CEO Sergio Marchionne said that as 2025 draws closer, more vehicles released by manufacturers will either by hybrids or fully electric vehicles.

"By 2025 more than half of the power units you see on the road will have some relevance of electrification," Marchionne said in an interview. "There may be a base combustion engine, but it is combustion and electrification that will make the machine run. Electrification will happen not necessarily as full battery‑electric vehicles but in combination with other forms of power. It’s going to be a very interesting time."