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Fiat Chrysler is investing 755 million zlotys ($204 million) into its Tychy plant in Poland, where it will manufacture hybrid and electric Jeep, Fiat and Alfa Romeo models.

“Modern, hybrid and electric cars of the Jeep, Fiat and Alfa Romeo brands will start to leave the factory in Tychy in 2022,” said Poland deputy Prime Minister Jaroslaw Gowin, who added that further investments in the plant are possible, as per Reuters.

Through these types of investments, Poland hopes to catch up to regional rivals such as the Czech Republic and Slovakia when it comes to the manufacturing of electric vehicles.

Read Also: European Commission Signs Off On Merger Of FCA And PSA

FCA, which is in the middle of a $38 billion merger with PSA, stated that early preparations for the expansion and modernization of the Tychy plant started in late 2020. This facility is one of the company’s largest (nearly 29 million square feet), currently employing roughly 2,500 people.

The first order of business is to begin production on three new passenger car models for the previously-mentioned brands in the second half of 2022.

What we don’t know yet is whether or not these models will be sold outside of Europe once they’re put into production. FCA has already confirmed that it will offer electrified options across its Jeep portfolio, investing a total of $10.5 billion into electrification within the next two years.

The Tychy factory currently produces the Fiat 500 subcompact and Lancia Ypsilon supermini. Last year, the facility built around 263,000 vehicles, nearly all of them exported to 58 markets worldwide.


Honda has decided that it will stop supplying its official dealers in Russia with new cars come 2022, as part of the automaker’s efforts to restructure its global operations in the midst of a global pandemic.

The Japanese brand will however remain in the Russian market by selling motorcycles and power equipment. They will also retain activities related to the after-sale service of its vehicles, as reported by Reuters.

Unlike rivals such as Toyota and Nissan, Honda has no manufacturing facilities in Russia, where they sold just 79 vehicles last month – a 50% drop compared to the previous year. Honda currently sells just two models in Russia and both are SUVs (CR-V and Pilot).

Read Also: Honda Ceases UK Production Due To Shortage Of Parts

Furthermore, its overall sales in Russia this year through November were down 15% to 1,383 units, a mere spec compared to the 1.3 million new cars sold there in total during that period.

Honda’s plans for Europe also include the company ditching its pure gasoline and diesel variants by 2023, aiming to retain a lineup consisting of fully-electric or hybrid models. According to company exec Ian Howells, Honda also believes in alternative fuels and isn’t ready to go all-in on fully-electric propulsion just yet.

“They’re [EVs] a third to 50% more expensive than a conventional or hybrid vehicle,” he told Autocar earlier this month.

Still, Howells does know that hybrids don’t represent a long term solution, stating: “They don’t take us the full way and that’s why we do see this as a transitioning or bridging type of technology to get us to the point at which the technology behind the batteries and the infrastructure are both in place to move forward to offering mass personal mobility with a new type of energy carrier.”

Germany, whose automotive industry is going all-in on EVs, has had to pay out six-and-a-half times more in electrified vehicle subsidies than it did in 2019.

The government paid out more than 652 million Euros in subsidies this year. By comparison, it paid out just 98 million in 2019. According to Reuters, these figures were obtained by the Reinische Post from the Federal Office for Economics and Export Control.

The newspaper reports that buyers have applied for a subsidy for a total of 229,951 vehicles. Although that’s a sharp increase from 2019’s 73,081, it doesn’t account for the full rise in Germany’s payouts. Indeed, increased funding for tax breaks for electrified vehicles introduced in July helped the payouts reach their 2020 heights.

Although the credits doubtless played a role in a number of Germans’ decision to buy electrified vehicles, a slew of new EVs, such as the VW ID.3, that were launched this year probably helped, too.

Read Also: China To Lower Subsidies For More Expensive Electric Cars

Increases in hybrid adoption outpaced increases in EV adoption, though. While the number of applications for EV subsidies rose from 51,000 to 126,000 (increasing by 250%) the number for hybrids skyrocketed from 22,000 to 103,000 (nearly 470%).

The German government is more than happy about the increase on EVs and hybrids and is confident that the number of electrified vehicles being purchased will only increase in 2021. Indeed, the new breaks for buyers will go on until at least 2025. Federal Minister of Economics Peter Altmaier said: “In 2020 we made a significant leap forward in electromobility in Germany. The main reason for this was the introduction of the innovation bonus in July, with which the federal government doubled its funding for the purchase of an electric car.”

Meanwhile, the demand for new hybrids and EVs is being recognized by the industry. Volkswagen, for one, just announced that it will be installing 750 new charging points around Germany in 2021.

“We need significantly more charging points in Germany and Europe if electric vehicles are to establish themselves quickly,” said VW’s head of e-mobility, Thomas Ulbrich. “For that reason, all players from the fields of politics and industry must continue their efforts in the coming year.”