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Fiat (FCAU) Spurs Electrification Efforts, To Invest in Poland

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Fiat Chrysler Automobiles revealed plans to commence the production of hybrid and electric vehicles at its manufacturing plant in Poland in the second half of 2022.

Reportedly, the auto giant will make an outlay of roughly $204 million (755 million zlotys) for the project in order to scale up and renovate its manufacturing facility in Tychy, Poland, with the objective to eventually produce hybrid and electric versions of Jeeps, Fiats and Alfa Romeo cars. The cars will be equipped with advanced drive systems, including an all-electric drive.

The manufacturing plant at Tychy is roughly 29 million-square-foot and employs around 2,500 people. It currently manufactures the Fiat 500 subcompact car and Lancia Ypsilon supermini cars. In 2019, the plant produced around 263,000 vehicles, most of which were exported to 58 markets across the globe.

Amid the rising environmental concerns, investors are constantly looking for automakers that provide zero-emission transportation solutions. Auto giants like Ford (F - Free Report) , General Motors (GM - Free Report) and Nissan (NSANY - Free Report) are taking considerable strides to capitalize on the trending green revolution.

Amid the transforming scenario, Fiat’s latest project is in sync with its ambitions to electrify its portfolio in a bid to take its EV game a notch higher. In fact, the Italian-American automaker has committed to offer electrified options across its Jeep lineup and invest $10.5 billion into electrification by 2022.

The investment also comes in as a boost to Poland’s economy, which is hoping a transit to EVs in order to keep pace with its other regional rivals. Moreover, Fiat is ready to bear multiple increases in expenditure in its latest investment, outlining its confidence in the success of the project in Poland.

Fiat currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of the company have appreciated 22.4% year to date, while its industry has witnessed a rise of 15.6%.

 

 

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