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California, Stellantis strike vehicle emissions deal
Global Banking & Finance Review®
Company
By David Shepardson
WASHINGTON (Reuters) – Chrysler parent Stellantis and the state of California reached an agreement on emissions on Tuesday after the company unsuccessfully sought to join a deal that other automakers had struck with the state in 2019.
Under the agreement announced by the state and the company, Stellantis will comply with California’s zero-emissions, light-duty vehicle sales requirements through 2030 even if the state cannot enforce its rules.
In addition, the company will not oppose California’s authority under the Clean Air Act for its greenhouse gas emissions and zero-emission vehicle standards.
Ford, Honda, Volkswagen and BMW struck a voluntary agreement with California in 2019 on reducing vehicle emissions and Volvo Cars, owned by China’s Geely, joined soon afterward.
Stellantis in December challenged the state’s prior refusal to allow it to join the agreement, and said it had been forced to cut some work in Michigan and Ohio at two SUV plants, citing California emissions regulations.
Stellantis CEO Carlos Tavares said on Tuesday the agreement “will avoid 10 to 12 million metric tons greenhouse gas emissions over the lifetime of the agreement and will also allow our U.S. customers to fully benefit from our advanced technologies.”
The agreement will allow Stellantis to join other automakers in complying with California’s rules based on national sales.
Stellantis has been limiting shipments of gasoline-powered vehicles to dealers in states adopting California’s emissions rules and sales of plug-in electric vehicles to states adopting California rules.
California Governor Gavin Newsom said the partnership “with Stellantis will help California achieve our ambitious goals to drastically cut pollution and get more clean cars on the roads.”
(Reporting by David Shepardson; editing by Jonathan Oatis)
Emissions compliance refers to the adherence of companies to environmental regulations regarding the amount of pollutants they can emit into the atmosphere, often involving specific standards for greenhouse gases and other harmful substances.
Zero-emission vehicles (ZEVs) are vehicles that do not emit harmful pollutants from their exhaust. This category typically includes electric vehicles and hydrogen fuel cell vehicles, which are considered environmentally friendly alternatives to traditional gasoline-powered cars.
The California Air Resources Board is responsible for regulating air quality in California. It sets standards for vehicle emissions and oversees compliance with state and federal air quality laws.
Greenhouse gas emissions are gases that trap heat in the atmosphere, contributing to global warming and climate change. Common greenhouse gases include carbon dioxide, methane, and nitrous oxide.
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