Stellantis reached a deal on March 19 with the California Air Resources Board (CARB) on emissions aligned with the state’s efforts to combat climate change.
Under the agreement, the maker of Chryslers and Jeeps will comply with California’s zero-emissions, light-duty vehicle sales requirements through 2030 and will not oppose California’s authority under the Clean Air Act for its greenhouse gas emissions and zero-emission vehicle standards.
Additionally, Stellantis pledged to expand its electrification offensive through educational efforts for U.S. consumers and dealers on the benefits of electric vehicles (EV). This includes collaborating with Veloz, the leader in promoting EV awareness efforts, providing discounted EVs to organizations in disadvantaged communities, and building upon ongoing efforts and contributing an additional $10 million for the installation of public EV chargers.
CEO Tavares: Win-Win Agreement
Stellantis CEO Carlos Tavares proclaimed the deal as a “win-win solution” that benefits both customers and the planet.
“This agreement will avoid 10 to 12 million metric tons of greenhouse gas emissions over the lifetime of the agreement and will also allow our U.S. customers to fully benefit from our advanced technologies, including five plug-in hybrids and two pure electric vehicles,” said Tavares in a press statement.
“We remain as determined as ever to offer sustainable options across our brand portfolio and being a leader in the global decarbonization efforts.”
Newsom Lauds Deal
The deal with Stellantis follows Ford, Honda, Volkswagen, and BMW voluntary agreement with California reached in 2019 on reducing vehicle emissions. Volvo joined soon afterward.
Stellantis in December 2023 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.
California Gov. Gavin Newsom offered the partnership with Stellantis will help the state achieve its goals to drastically cut pollution and get more clean cars on the roads.
“The biggest and most influential companies in the world understand that this is how we can fight climate change together, and it’s another example of the private sector joining California to help millions of people get into clean vehicles,” said Newsom.
Dare Forward 2030
Stellantis currently sells five plug-in hybrids in the U.S and two pure electric with plans to introduce eight new BEV models this year in the U.S., as part of its planned offering of 48 BEV nameplates globally by end of 2024.
Tavares noted the agreement with California aligns with its Dare Forward 2030 strategic plan of investing almost $55 billion in electrification over the decade. As part of the initiative, the company is targeting reaching a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.
