Tesla May Supply Fiat-Chrysler EVs with Batteries and Drivetrains

Eventually, Fiat Chrysler might get a valuable lifeline for their vehicles that are not electric as of yet. FCA CEO Mike Manley has mentioned that Tesla could very well provide batteries and drivetrains for Fiat-Chrysler electric cars that are coming in the future. The development and rollout of the plan are taken longer than expected, but there is progress on both sides. 

The comment was made by Manley after the release of FCA’s earnings spot, which happened on October 31, 2019. Just how much is on the table when it comes to the pooling deal? The CEO declined to answer. 

However, Manley did respond to a follow-up question on whether Fiat-Chrysler will be open to purchasing an all-electric platform from Tesla. The CEO answered that it could happen if FCA’s merger with the PSA Group goes through. For that to happen, Chrysler would need a valuable ally that is knowledgeable on all things electric vehicle technology. 

“It would be wrong of me to say no,” said Manley. Manley also discussed adding that drivetrains and batteries are most likely what FCA will be purchasing from Tesla. The CEO also mentioned that there’s a big possibility that the company is buying a “skateboard” platform from Tesla, which it would then use for its various brands.

This isn’t the first time that the idea of Tesla acting as a supplier for veteran automakers happened. They have engaged in other activities in the past during their early days. The then-small EV startup supplied Toyota with powertrains, which resulted in them being significant investors in the company.

While Manley addressed the point, he also added that Fiat-Chrysler’s pooling deal with Tesla would end in 2021. Manley also stated that the company’s main priority is still sustainability. “Our relationship with Tesla goes back a long way. It really has helped us. But FCA is absolutely committed to reducing CO2 emissions around the world,” said Manley. 

The idea of Tesla working with other suppliers was mentioned in the company’s recently-held Q3 2019 earnings. Elon Musk, CEO seemed optimistic about the idea of Tesla selling its components to other OEMs. When addressing the topic, Musk stated that such initiatives are in line with the electric car marker’s mission.

“It would be consistent with the mission of Tesla to help other car companies with electric vehicles on the battery and powertrain front, possibly on other fronts. So it’s something we’re open to. As a lot of people know, we open-sourced our patents so that those would not serve as an obstacle to the adoption of electric vehicles or solar power or stationary storage. And we’re definitely open to supplying batteries and powertrains and perhaps other things to other car companies,” he said.

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