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Stellantis seeks to eliminate rival manufacturers’ California emissions

A Truck Hauler Hauling Jeep Wranglers Drives Past Striking Members Of The United Auto Workers Outside The Stellantis Jeep Plant In Toledo

A truck hauler hauling Jeep Wranglers drives past striking members of the United Auto Workers outside the Stellantis Jeep Plant in Toledo, Ohio, U.S. September 17, 2023. REUTERS/Rebecca Cook Acquired Licensing Rights

Dec 6 (Reuters) – Chrysler-parent Stellantis ( STLAM.MI ) said on Wednesday it intends to scrap a 2019 California emissions deal with rival automakers and it could face new compliance penalties from state regulators.

The automaker said it is petitioning to void the agreement with the California Air Resources Board (CARB) to “relieve Stellantis of competitive disadvantages arising from our continued separation and to preserve our ability to best serve the our customers by equitably distributing our products to all states.”

Ford ( FN ), Honda ( 7267.T ), Volkswagen ( VOWG_p.DE ) and BMW ( BMWG.DE ) have made a voluntary agreement with California to reduce vehicle emissions and Volvo Cars, which is belongs to Geely in China, joined immediately. Stellantis sought to join the voluntary agreement but was refused.

Stellantis said in its California filing that CARB intends to pursue retroactive enforcement of greenhouse gas emissions standards for the 2021 and 2022 model years against automakers including Stellantis but “not retroactively enforces the same regulations against” voluntary agreement automakers.

Stellantis said the agreement allows participating automakers to comply based on national sales, while it and other non-participating companies are measured by sales in the 14 states that follow California’s rules, which restrict it. to sell electric models in other states.

CARB did not immediately comment

Stellantis said Wednesday that it is limiting shipments of gasoline-powered cars to dealers in states that have adopted California’s emissions rules and in some cases gas-powered cars are only being shipped to those state for sold orders, once a customer orders such a vehicle.

Stellantis also sometimes limited sales of plug-in EVs in states that adopted California’s rules and only shipped pre-ordered vehicles to other states.

In May, CARB asked the Environmental Protection Agency for approval for these rules to be adopted in August 2022 that would allow the state to ban the sale of gasoline-powered vehicles by 2035 and require at least 80% of electric-only model. EPA has not yet opened the request for public comment.

In June, Reuters reported that Stellantis paid a record $235.5 million for the 2018 and 2019 model years for not meeting US fuel economy requirements.

Reporting by David Shepardson; editing by David Evans

Our Standards: The Thomson Reuters Trust Principles.

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