Fiat Chrysler Automobiles N.V. (FCAU - Free Report) has announced that it started arrangements for the production of plug-in hybrid version of Jeep Renegade, per Reuters. This is in sync with the company’s plan to move ahead with its electrification drive to comply with stricter emission regulations.
Notably, in order to become fully compliant with emissions regulations, this seventh largest automaker in the world spelled out a plan in June to invest €9 billion (£7.88 billion) in electric and hybrid vehicles over the next five years.
Likely to enter the market in early 2020, the plug-in hybrid version of Jeep Renegade will be produced at Fiat Chrysler’s Melfi plant in Southern Italy. Notably, Melfi plant is already producing Fiat 500X crossover and combustion engine version of Jeep Renegade. Over €200 million will be spent on the new engine and workers will be trained for the new technology.
Though initially reluctant, Fiat Chrysler is gradually embracing electrification, in compliance with stricter emission rules. By 2022, the company intends to offer 12 electric propulsion systems. This will include battery electric vehicles (BEV), plug-in hybrids (PHEV) and full hybrids.
Year to date, shares of Fiat Chrysler have outperformed the industry it belongs to. Over this time frame, shares of the company have declined 3.8%, compared with 22.4% decrease recorded by the industry.
Zacks Rank & Stocks to Consider
Currently, Fiat Chrysler has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and Navistar International Corporation (NAV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 33.8%.
American Axle & Manufacturing has an expected long-term growth rate of 8.1%. Over the past six months, shares of the company have risen 10.9%.
Navistar has an expected long-term growth rate of 5%. Over the past six months, shares of the company have risen 5.8%.
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