The two companies are combining their fleet-wide emissions.
Fiat- Chrysler Automobiles (FCA) will pay Tesla hundreds of millions of dollars to comply with European Union-imposed regulations on CO2 emissions, according to several reports published on Sunday, April 7.
Tesla and FCA will pool their fleet-wide CO2 emissions, the Financial Times reported. That means Tesla’s CO2 emissions — which amount to zero, because it only makes electric cars — will keep FCA’s in check, while allowing the Italian-American automaker to slip under the legal limit and avoid paying a hefty fine in the European Union. Details about the deal (like precisely how much Tesla will pocket from it) haven’t been made public yet.
“The purchase pool provides flexibility to deliver products our customers are willing to buy, while managing compliance with the lowest cost approach,” FCA said in a statement sent to Automotive News Europe.
Tesla has bailed out FCA in the past. In the United States, the group has purchased emissions credit from the California-based automaker. It has also bought credits from Toyota and Honda.
FCA won’t pay Tesla for a piggy-back ride every year. The company is preparing to introduce the second generation of the modern-day 500, and it confirmed the model will be exclusively offered as an electric vehicle. Making one of its most popular models electric will help FCA keep its fleet-wide emissions below 95 grams of CO2 per kilometer, the limit European regulators set for 2020. The company ended 2018 with a 123-gram average, which is 2.5 grams above the industry average.
Tesla and FCA have become the first automakers to form an open pool. Mazda and Toyota announced they’ll do the same.
The two companies are combining their fleet-wide emissions.
Fiat- Chrysler Automobiles (FCA) will pay Tesla hundreds of millions of dollars to comply with European Union-imposed regulations on CO2 emissions, according to several reports published on Sunday, April 7.
Tesla and FCA will pool their fleet-wide CO2 emissions, the Financial Times reported. That means Tesla's CO2 emissions -- which amount to zero, because it only makes electric cars -- will keep FCA's in check, while allowing the Italian-American automaker to slip under the legal limit and avoid paying a hefty fine in the European Union. Details about the deal (like precisely how much Tesla will pocket from it) haven't been made public yet.
"The purchase pool provides flexibility to deliver products our customers are willing to buy, while managing compliance with the lowest cost approach," FCA said in a statement sent to Automotive News Europe.
Tesla has bailed out FCA in the past. In the United States, the group has purchased emissions credit from the California-based automaker. It has also bought credits from Toyota and Honda.
FCA won't pay Tesla for a piggy-back ride every year. The company is preparing to introduce the second generation of the modern-day 500, and it confirmed the model will be exclusively offered as an electric vehicle. Making one of its most popular models electric will help FCA keep its fleet-wide emissions below 95 grams of CO2 per kilometer, the limit European regulators set for 2020. The company ended 2018 with a 123-gram average, which is 2.5 grams above the industry average.
Tesla and FCA have become the first automakers to form an open pool. Mazda and Toyota announced they'll do the same.
