Fiat-Chrysler pens deal to boost electric vehicles with Engie EPS
Source: Xinhua| 2020-11-13 05:41:52|Editor: huaxia
Italian-American automaker Fiat-Chrysler on Thursday announced a joint venture with micro-grid and energy storage company Engie Electric Power Systems to develop electric vehicles and other green services.
Fiat-Chrysler is in the midst of a merger with French rival Peugeot the companies have said will be worth 50 billion U.S. dollars.
According to officials from the companies as well as analysts, China is expected to be one of the major markets for Stellantis, the name selected for the combined company, which is expected to start operations next year. The merger will create the world's fourth-leading car maker based on vehicles sold.
Another key area for Stellantis will be the development of low-impact electric vehicles, analysts have told Xinhua. Fiat-Chrysler's deal with Engie EPS is expected to help change that.
According to Fiat-Chrysler, the joint venture with Engie EPS will offer a "full range of products and solutions across Europe, such as charging infrastructure and green energy packages, for all our electric vehicle customers." Financial terms of the deal were not released, although Fiat-Chrysler said it will be the senior partner in the joint-venture.
In 2018, Fiat-Chrysler vowed to spend at least 9 billion euros (10.6 billion U.S. dollars) on the development of electrified vehicles by 2022.
"The envisioned joint venture would allow an even higher commitment from both parties to expand the scope of the existing cooperation and further develop innovative products and services to enable and support a smooth shift to electric mobility in Europe," Fiat-Chrysler Chief Executive Officer Mike Manley said in a statement released after the joint-venture was announced.
The joint-venture, which was among the top stories on multiple Italian news sites, is expected to begin operations in early 2021.
Engie EPS is the Italian subsidiary of French utility company Engie.
Stock markets saw the deal as better news for Engie EPS than for Fiat-Chrysler, with shares in Engie EPS closing the day 16.7 percent higher in trading in Paris, while Fiat-Chrysler shares slipped 2.1 percent in trading in Milan. (1 euro = 1.18 U.S. dollars)
