In 2020, the European Union introduced strict new rules requiring automakers to average no more than 95 g of CO2 per kilometer, with heavy financial penalties for companies that missed this target.
With diesel no longer a palatable option, some automakers pivoted to electric vehicles, and European EV sales skyrocketed as a result. Others, like Fiat Chrysler Automobiles, looked at their product pipelines and decided it was easier to buy emissions credits instead. FCA entered into a deal with Tesla to count its battery EVs as part of its fleet. But last year, FCA merged with Peugeot to form Stellantis, in large part to gain access to a modern BEV platform.
That plan evidently worked, because on Tuesday its CEO Carlos Tavares told France’s Le Point that from next year Stellantis will meet its carbon target without help. “Thus, we will not need to call on European CO2 credits and FCA will no longer have to pool with Tesla or anyone,” Tavares told Le Point.