Fiat to pool cars with Tesla to meet EU emissions targets
Mazda, Toyota also partner to cut CO2 emissions
Bloomberg via autonews.com
April 07, 2019
Fiat Chrysler Automobiles is pooling its fleet with Tesla Inc. to comply with stricter European Union rules on carbon-dioxide emissions, in a deal that’s likely to pay the U.S. electric-car leader hundreds of millions of dollars.
Tightening EU regulations that kick in next year could cost Fiat 2 billion euros ($2.2 billion) in potential fines in each of 2020 and 2021, according to Jefferies analyst Philippe Houchois. In a statement, Fiat said cooperating with Tesla will give it flexibility to find “the lowest-cost approach.”
The Italian-American carmaker is behind on meeting the new standard, and the so-called open pool option available in the EU allows automakers to group their fleets together to meet the targets. Payments to Tesla, whose EVs don’t produce CO2 emissions, may amount to over 500 million euros, according to Jefferies. Compliance has gotten harder for automakers with a move by consumers toward gasoline-powered vehicles, which emit comparatively more CO2, since Volkswagen’s 2015 diesel emissions violations.
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