On Tuesday, Stellantis, Chrysler’s parent company, and the state of California finalized an emissions agreement. This accord comes after Stellantis attempted to join an agreement between other automakers and the state in 2019, but it was unsuccessful.
As per the newly announced agreement between the state and Stellantis, the company will adhere to California’s zero-emissions standards for light-duty vehicle sales until 2030, even when the state lacks the authority to enforce these regulations.
Furthermore, the company will not contest California’s authority regarding its greenhouse gas emissions and zero-emission vehicle standards, as the Clean Air Act established.
In 2019, Ford, Honda, Volkswagen, and BMW voluntarily agreed with California to reduce vehicle emissions. Volvo Cars, a subsidiary of China’s Geely, later joined this agreement.
Also read: Stellantis will stick to EU’s 2035 ban on fossil fuel cars
Stellantis challenged the state’s previous denial of its request to participate in the agreement in December. Due to California’s emissions regulations, the company stated it had been compelled to reduce operations at two SUV plants in Michigan and Ohio.
On Tuesday, Carlos Tavares, CEO of Stellantis, said that 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.”
Stellantis has been limiting shipments of gasoline-powered vehicles to dealers in states that adopt California’s emissions regulations. In contrast, sales of plug-in electric vehicles are targeted at states with similar rules.
