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Are diesel costs “prohibitive”?

by David Zatz on

The cost to move 80% of FCA’s diesels to the next level of compliance (Euro 6) would cost at least 500,000 euros – just on the European side, according to Sergio Marchionne, speaking today.

“That’s a big number. … Gasoline doesn’t require [that sort of cost.] What’s going to kill diesel is this continuous drain on capital.”  Mr. Marchionne blamed Volkswagen (without naming them) for taking a useful product, diesel, and making it unviable going into the future.

Mr. Marchionne responded to a question regarding Fiat 500X diesel emissions by noting that the retests of the engine in countries outside Italy are “not prescribed tests,” noting that the law is vague. He said FCA had sat down with Italian authorities and they had gone through everything they had done; and pointed out that the EU left authority for emissions with individual countries. “I never interfered with Volkswagen in Germany or PSA in France. … let’s not change the rules now. I need certainty on both matters now, I need certainty on trade matters in the United States.”

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