FCA To Pay Tesla Hundreds Of Millions To Pool CO2 Emissions In Europe

Fiat Chrysler Automobiles has reportedly agreed to pay Tesla hundreds of millions of euros in order to include the EV maker’s electric cars in its fleet and avoid a large fine for breaking the European Union’s tough new emissions rules.

The report comes from The Financial Times, citing a document from the European Commission.

The deal will allow FCA to offset the CO2 emissions from its own cars against Tesla’s, dropping the company’s average to a permissible level. The EC’s document also revealed that Mazda and Toyota would also form an open pool for their emissions.

Starting next year, the European Union has set the target for average fleet CO2 emissions to just 95gr/km. The EU’s new target will become law in 2021.

According to data from UBS, Fiat Chrysler Automobiles averaged 123gr of CO2/km last year, making them the company with the “highest risk of not meeting the target”. The industry average emissions were 120.5gr/km.

Analysts at Jefferies predict that FCA could face a fine of over 2 billion euros ($2.2 billion) in 2021 if they fail to meet the target. Another study by PA Consulting last year said that the company is likely to go over the limit by 6.7gr/km, the biggest gap among the 13 carmakers in the study.

EU rules allow manufacturers to pool emissions both internally -like VW Group does- and externally, with rival companies forming the so-called open pools. However, until now, none of them have officially reached an agreement, so if this goes through, FCA and Tesla will be the first ones.

No financial details have become known at this point, with FCA declining to provide more information and Tesla confirming that they submitted their intention to form a pool to the European Commission on February 22, “to give other carmakers the chance to join.”

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  • DaruniaG

    Off topic, but that color on the Levante looks sick

  • Zé Bicho

    Why don’t they cheat emission numbers just like VW?

    • Mr. EP9

      Because they won’t have the money to pay when they get caught.

  • Mr. EP9

    I’m pretty sure Tesla doesn’t care so long as they are getting paid. I wonder what would FCA do if Tesla told them no? Pay the fines? Would is still be significantly cheaper than building emissions complaint vehicles?

  • Callanish

    How can you include another manufacturer as part of your fleet when FCA have absolutely nothing to do with Tesla and why would the EU even allow this when it’s obvious why another manufacturer would do this to get around better emissions rather than address their own failings by not addressing the pollution emissions within their own fleet

  • Dude

    Lol that’s pretty hilarious, but really it’s just FCA being practical. No one else makes so many EVs so why not tap Tesla. The infamous Aston Martin Cygnet (Smart Car) served the same purpose. I wonder if we’ll see some kind of visual overhaul in the name of badge engineering…

  • what stupid rule. For those not living in Europe, we end up with undrpowerd cars, and cars like the XC90, V90… T8, Panamera, Cayenne… Turbo- e hybrid, Mercedes and Audis hybrids with no electric range. They pay no taxes, worse sometimes get up to 5000€ to buy their cars. And they suck more petrol than their regular engines sisters. Volvo’s new 4 cylinders (petrol and Diesel) are not cleaner than previous 5 pots and don’t use less gas/diesel, even the competion’s V6 engines use less petrol. (and sound better). Most Rechargeable hybrids are never connected, so alsmost never drive on electric, but are considerd like electric cars, a normal car with 400kg of batteries and electric engines isn’t worse. People buy 1.0L 3 pot cars that are awful to drive when you have more than the driver in it, with horrible gear ratios to use all the (little) power the engine makes. The only hybrid cars that make sense are those used by taxis, and city car such as the (EU) Yaris. Unless you live in Holland, the charging network in crap. People that can afford electric cars live in appartements, but they are not allowed to install chargers in their garages.

    • europeon

      Hear, hear!

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