Recently, Fiat Chrysler Automobiles NV agreed to add an investment of $1.1 billion in an assembly plant it has in Canada. This comes as part of a rather tentative agreement that was made with the thousands of local autoworkers. The deal was made with Unifor, which is a representative for around twenty thousand Canadian autoworkers, and the money will be invested in a new electric-vehicle platform. It will be based in a Windsor, Ontario assembly plant, and will start in 2024, bringing two thousand new jobs to a plant that has laid off 1,500 people this year.
Fiat Chrysler Finally Looks Ready to Invest In Electric Vehicles
While the late CEO Sergio Marchionne was resisting investments in EVs, now Fiat Chrysler shows that it is ready to step up its electrification plans. It’s introducing several new models, including a hybrid Jeep Compass and Jeep Renegade for the European market, as well as a plug-in Wrangler that will be made in Toledo, Ohio. Last month it also teased a hybrid concept of its new Jeep Wagoneer.
Fiat Chrysler will combine with French carmaker PSA Group and create Stellantis – the world’s fourth-largest auto manufacturer. These former rivals will share the burdens and investments that come with developing self-driving electric vehicles.
FCA Has Started Talks With the Canadians for Subsidizing Its New Electric Platform
The Italian-American company agreed to similar terms Unifor reached with Ford Motor Co., in a deal from September. This includes around a billion in investments and government subsidies that will be aimed at producing battery-powered EVs. Fiat Chrysler also plans to create new versions of its retro muscle cars during each year of the new labor agreement. These will most certainly include the Chrysler 300, Dodge Charger, and Dodge Challenger models. Unifor President Jerry Dias said that they are feeling quite comfortable with the fact that those models are loved by the consumers.
Now, Unifor members are expected to vote on the Fiat Chrysler agreement this October. After the deals with Fiat Chrysler and Ford are made, Unifor also plans to start talks with General Motors Co.
Chrysler Brand Has a Future & Will Be Revitalized With Several New Models
The brand Chrysler was almost on the verge of disappearing from existence but it seems like it’s not the end for the brand yet. On the outskirts of Amsterdam, an event was held, where they discussed the product strategy for Stellantis’ future, a 14-brand empire. The CEO of the company Carlos Tavares spoke at the event saying that Chrysler was former FCA’s emotional pillar. Tavares further said that it was imperative that the brand was given a future and the chance to bounce back. He completed the note by saying that the Chrysler cars looked really gorgeous and that the brand would be re-launched.
Entry Into Electric
The initial models of this brand are expected to be a compact electric crossover titled Airflow. It is said to be competing with brands like Tesla Model Y, Volvo XC40 Recharge, and Ford Mustang Mach-E. Stellantis has named the strategic plan for the company as Dare Forward 2030. Tavares said that Chrysler will go electric by the year 2028. However, the brand’s overall target for America, with respect to all its brands, is to receive 50% of its total sales from light-duty trucks and passenger vehicles by 2030.
Fiat Not a Priority Right Now
There are no plans yet for reviving Fiat in the U.S. yet. Tavares has mentioned that they are yet to devise a strategy that will help the brand get their sales up. There are ideas about how it can be done but they are yet to be formalized. The brand currently only sells its 500X crossover.
In regards to the brand strategy in the U.S., Tavares mentioned that they intend to make investments in their American brands. However, they do not intend to bring in more brands right now to this country. They are happy with what they currently have.