Fiat Chrysler Automobiles [FCA] is leveling up its game in the electric vehicle [EV] ecosystem by buying technologies from other EV companies to power its vehicles. To have an edge over its competitors, FCA is in talks with the Faraday Future and Seres, formerly known as SF motors, to develop future Fiat-Chrysler cars.
According to Verge, Farady installed electric powertrain technology in one of Fiat Chrysler vehicles and carried out on-road testing in October. Faraday Future is currently suffering from a financial crisis, as it needs $850 Million to start the production of its SUV, FF91; therefore, selling its technology might help the company survive.
Another EV startup, Seres was recently asked to put its electric powertrain in two of the FCA vehicles. Serers, owned by Chinese automaker Sokon, halted its SUV production and laid off nearly 90 employees. Talking about the relationships with the two startups, the FCA spokesperson said that the company “doesn’t comment on potential business relationships”.
In October 2019, FCA CEO, Mike Manley, said in a conference call that the company would rather buy than make EV basic platforms and also consider buying Tesla’s skateboard chassis. He added that FCA won’t break-even with its electric technology investments until 2022. The company is striving to expand in all the markets and has taken its biggest step by announcing a $50 billion merger with Groupe PCA.
The move to become the fourth-largest automaker has attracted huge criticism from dignitaries of the industry. It’s being considered as the worst decision and a “huge gamble” in the automaker industry.
Amid the merger, General Motors [GM] has filed a federal racketeering lawsuit which states that FCA has bribed the United Auto Workers [UAW] in “millions of dollars” to gain better deals and concessions in labor agreements over time. While FCA intends that the lawsuit is to disrupt the merger talks and affect the on-going negotiations with UAW.