After the big announcement of merging with the PSA Group, Fiat Chrysler (FCA) is now planning to buy an electric platform from Tesla. FCA CEO Mike Manley said that the company would need electrification on a grand scale if the association with PSA goes through. Fiat will be associating with Tesla for vehicle pooling. The officials said that this move would conserve the capital of both firms. The company is supposed to buy a skateboard from Tesla. Tesla has been supplying its services and components to other companies as well. It has given Powertrains to Toyota. However, the Japanese company sold off its assets after Tesla’s 2010 IPO.
Fiat’s pooling deal with Tesla to shun the emission fines will conclude in 2021, confirmed CEO FCA. Tesla has also supplied batteries and motors to Mercedes Benz for its B class electric car and the first electric car. Tesla’s association with Toyota and Mercedes Benz ended years ago. However, Tesla Chief Elon Musk has not hinted whether he wants to be the supplier of other manufacturers or not. FCA intends to adopt Tesla’s skateboard platform to individual markets by using braking, suspension, and other systems of brands like Alfa Romeo, Maserati, and Jeep, which belong to the FCA group.
Fiat Chrysler has been in deep trouble since 1979. An only federal loan program saved it from bankruptcy. Since then Chrysler has been able to survive in the market and the credit goes to the profits derived from the Jeep division. The company acquired Jeep from AMC in 1987. Mercedes Benz took over Chrysler in 1998 for $34 billion. After putting so much effort to make it a profitable firm, Benz sold off the company to Cerberus Capital management group for $7.4 billion in 2007. Chrysler finalized its acquisition in 2014 and emerged as Fiat Chrysler. Nowadays, many companies fear about becoming merely an assemblers of parts supplied from outside. In this scenario, Fiat might be taking a risk by associating with Tesla.