Detroit - Fiat Chrysler Chief Executive Sergio Marchionne said his company is in talks with other car companies to share the costs of developing new vehicles and technology, particularly to cut greenhouse gas emissions, and called on the United States to ease fuel economy targets for 2025.
“I think (automakers') costs ... (are) well in excess of what I consider a mature industry to be able to afford,” Marchionne told reporters at the Detroit auto show on Monday.
The US government wants carmakers to average 4.3 litres per 100km across their vehicle line-ups by 2025. Marchionne said that with fuel prices sliding to $2 a gallon or less, consumers have less incentive to pay extra for advanced fuel-saving technology. The US Environmental Protection Agency will review the targets by 2018, and Marchionne said he expects other carmakers to lobby the EPA to extend the timetable for achieving the target.
Marchionne deflected questions on whether FCA was in merger talks, but said that company’s relatively low stock values reflect investor perceptions that car companies are wasting capital producing their own versions of commoditized technologies, such as the hardware for four-cylinder engines.