Fiat Chrysler Automobiles NV is set to move away from diesel-powered engines as the demand for battery-electric vehicles picks up, according to London's Financial Times.
The manufacturer, whose brands include Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati and Ram, intends to unveil a four-year plan to eliminate diesel engines from its passenger vehicles on June 1, FT reported, citing unnamed sources. The automaker is expected to retain diesel as a fuel source for its commercial vehicles, including its line of pickup trucks in the U.S.
Fiat Chrysler is the latest automaker to ditch diesel from its passenger vehicles following similar moves by Toyota Motor Corp. and Volkswagen AG-owned Porsche Automobil Holding SE.
Automakers and governments have favored diesel as a means of reducing carbon dioxide emissions. However, the fuel source has been a point of contention in political circles since 2015 after revelations that Volkswagen used software designed to deceive regulators about pollution levels.
The scandal prompted some governments to cut incentives for diesel and some cities to consider banning the fuel type, FT noted.
Fiat was the only automaker in Europe whose share of diesel sales rose last year as overall sales in Europe declined by 8%. The company's sales grew because of its activities in Italy where the demand for diesel remains strong, according to the report.