Fiat Chrysler Automobiles NV

Trend in past emissions intensity (manufacturing)

FCA has made significant progress in reducing its manufacturing emissions in recent years. This has been achieved in large part through its optimisation of energy use, supported by the application of the company’s Energy Management System across 99 percent of its manufacturing plants and by its World Class Manufacturing methodology. The company has redesigned its production process, optimised plant capacity, raised awareness among employees and increased its renewable energy use. FCA plans to further streamline its efforts to make manufacturing plants more efficient under its 2018-2022 Business Plan.

Low-carbon vehicle share

A very low share of FCA’s sales come from low-carbon vehicles, which contributes to its lower place in the ranking. . The company’s electrification efforts have focused on “mild hybrids” rather than on fully electric vehicles. However, FCA does now have new plug-in hybrid and battery electric models, such as the plug-in hybrid Jeep and the fully electric Fiat 500e. FCA could focus on selling more low-carbon vehicles such as these to align itself with the low-carbon pathway.

Alignment of fleet emissions reduction targets

FCA does not have publicly available fleet emissions reduction targets. The company plans to use a regional strategy to comply with regulations. For example, FCA will purchase emissions credits from other auto manufacturers in the North America region and pool its emissions figures with those of other manufacturers in Europe. FCA should establish targets to reduce its own fleet emissions in its low-carbon transition plan, with interim milestones in the short, medium and long term to drive its decarbonisation efforts.

FCA has not published targets around reducing its fleet emissions, though it has committed to an electrification programme. The company will offer electrified propulsion systems spanning its full range of vehicle segments by 2022 and will combine technologies to align with the vehicle mix, consumers’ needs and the regulatory framework in each market.

FCA relies on governments to establish regulatory frameworks for decarbonisation, support the deployment of low-carbon infrastructure and drive consumer demand for low-carbon vehicles. FCA focuses on achieving region by region regulatory compliance for its fleet emissions and uses the ISO50001 energy management system to guide its manufacturing emissions reductions.

FCA focuses its research and development on reducing vehicle energy demand, with improvements in kinetic energy recovery and re-use of thermal energy. Its electrification initiatives seem to focus primarily on hybrids rather than fully electric vehicles. The company currently has one fully electric vehicle, which is only available in the North America sales region, though an electric Fiat 500 – the Fiat 500e – will soon be available in Europe. FCA has also launched a plug-in hybrid jeep in the North America region. The company is also developing autonomous driving and connectivity technologies, in addition to selling compressed natural gas vehicles – namely the European built Fiat Panda which runs on biomethane.

FCA’s fleet emissions reductions and internal combustion engine efficiency are behind the levels and rate of change required under the low-carbon pathway. Moreover, the company realigned its North America market strategy in response to a continued shift in demand for passenger trucks and SUVs. FCA’s reputation has come under scrutiny. Private law suits are still open in the US related to the 2015 diesel emissions scandal. A reputational risk tracking service shares reports of other ongoing legal proceedings regarding alleged vehicle defects, settlements on sales reporting issues, and issues regarding employee relations.

FCA’s business activities and strategy do not clearly reflect a commitment to decarbonise. FCA has made progress in recent years to reduce its initially high fleet emissions and poor combustion engine fuel efficiency; however, the company should do more to align with the low-carbon pathway. FCA should establish more ambitious low-carbon transition planning, particularly in the US where consumers favour SUVs.