FCA is paying Tesla hundreds of millions of dollar to pool their vehicles with Tesla to avoid EU fines over emissions. Tesla put out an invitation to other automakers to use its fleet to lower their emissions totals and FCA took them up on it. Neither company released financial specifics of the deal, but it is estimated by the Financial Times to be worth hundreds of millions of dollars.
Similar to California which allows manufactures with a surplus of ZEV credits to sell them to manufacturers who need them, the EU Commission allows manufacturers to pool together their fleets to avoid paying fines. Tesla makes significant money selling these credits in the US, earning $103.4m in 2018 and $279.7m in 2017. Once set up, the pool in Europe is good for several years.
Vehicles in 2018 are allowed an average CO2 emission of 120.5g per kilometer. That figure will drop to 95g per kilometer next year. FCA's average for 2018 was 123g per kilometer, one of the largest off the mark of the 13 major manufacturers. FCA is seen to have fallen to near the back of the pack when in comes to reigning in CO2 emissions.
FCA was forecast to be facing fines exceeding €2 billion ($2.25 billion) without pooling with Tesla.
Recommended Comments
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.