Skip advert
Advertisement

Fiat pairs up with Tesla to avoid EU emission fines

Fiat Chrysler Automobiles to pay Tesla “hundreds of millions” of euros to share fleet CO2 emissions and meet tough EU targets

Fiat 500e

Fiat Chrysler Automobiles (FCA) is to pay Tesla “hundreds of millions” of euros to enable Tesla’s electric cars to count as part of FCA’s “pool” of vehicles for the purpose of CO2 emission measurement, thereby allowing FCA to meet stringent EU emission targets. 

Under the deal, first reported by the Financial Times, the Tesla Model 3, S and X will become part of FCA’s vehicle fleet for the purposes of counting carbon dioxide emissions, enabling FCA to more easily meet EU targets.

Advertisement - Article continues below

Best electric cars to buy 

European Union rules will require carmakers to post average CO2 emissions of 95g/km across all the cars they sell by 2020 and 2021. Cars from FCA, which owns Fiat and Alfa Romeo, as well as Ferrari, Maserati and Jeep, emitted 123g/km of CO2 on average last year, according to data cited by the Financial Times, meaning the 95g/km target is likely to be hard to hit within a year or two.

Carmakers who do not meet the fleet average targets will have to pay fines of €95 (roughly £82) for every g/km of CO2 over the 95g/km target each car they sell emits. Analysts cited by the Financial Times claim FCA could face fines of more than €2 billion by 2021 if the company’s fleet CO2 emissions aren’t reduced.

EU rules permit companies to “pool” their emissions with internal brands, meaning Volkswagen can share fleet-average emissions with SEAT, Skoda and Audi, and PSA brands (Peugeot, Citroen and Vauxhall) can do similarly. But external pools – where one company teams up with another – are also permitted, and the FCA-Tesla deal is believed to be the first of its kind.

A statement from FCA said the company is “committed to reducing the emissions of all our products” and that it intends to “optimize the options for compliance that the regulations offer”. FCA stressed that “the whole point of a CO2 credit market is to leverage the most cost-effective ways to reduce overall GHG [greenhouse gas] emissions in the market” and that a CO2 “purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest-cost approach.”

What do you think of Fiat pairing with Tesla to combat CO2 emissions? Let us know in the comments below...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

UK new car buyers love a Mercedes-Benz but Ford is favourite when used
Mercedes A-Class - front cornering
News

UK new car buyers love a Mercedes-Benz but Ford is favourite when used

Data from YouGov’s BrandIndex shows that Mercedes-Benz is a top choice with new car buyers, with used buyers favouring Ford
2 May 2024
Tesla slashes Supercharger membership cost with 42 sites now open to all EVs
Tesla Superchargers
News

Tesla slashes Supercharger membership cost with 42 sites now open to all EVs

Tesla has cut the costs of its Supercharger Membership, which grants access to lower charging rates, by £2 per month
19 Apr 2024
Fiat Doblo, Scudo and Ducato vans go on sale with 2024 style and tech updates
Fiat Doblo, Scudo and Ducato vans - front tracking
News

Fiat Doblo, Scudo and Ducato vans go on sale with 2024 style and tech updates

All three of Fiat’s vans are available with pure-electric power
25 Mar 2024
Fiat ‘Mega-Panda’ leads surprise concept car blitz that uncovers bold future model plans
Fiat concept city car
News

Fiat ‘Mega-Panda’ leads surprise concept car blitz that uncovers bold future model plans

Four other all-electric concept car models were revealed with wild styling
26 Feb 2024

Most Popular

No more EV! New BMW X3 gets petrol, diesel and PHEV power only
BMW X3 - front
News

No more EV! New BMW X3 gets petrol, diesel and PHEV power only

The all-new premium BMW X3 SUV has a sharp new look and cutting-edge tech, but no iX3 EV this time around
18 Jun 2024
Car Deal of the Day: £14,000 off a factory fresh, top-of-the-range Nissan Leaf
Nissan Leaf
News

Car Deal of the Day: £14,000 off a factory fresh, top-of-the-range Nissan Leaf

Nissan’s electric family hatchback with a huge discount is our Deal of the Day for 20 June
20 Jun 2024
Car Deal of the Day: 893bhp Lotus Eletre R super SUV for just £634 per month
Lotus Eletre - front
News

Car Deal of the Day: 893bhp Lotus Eletre R super SUV for just £634 per month

Our Car Deal of the Day for 18 June proves you can get hypercar power for family car money
18 Jun 2024