Currently reading: FCA and Tesla agree deal to beat EU emissions regulations
European Tesla sales will improve Fiat Chrysler Automobiles’ fleet CO2 average via new loophole

Fiat Chrysler Automobiles has agreed a deal with Tesla to help avoid paying fines for exceeding new European Union emissions limits.

FCA, whose brands include Alfa Romeo, Fiat, Jeep and Maserati, will pay for the right to count Tesla’s electric vehicles as part of its fleet, under an ‘open pool’ option allowed by EU regulations. Under EU rules, the average emissions of a firm’s new car fleet in 2021 must be 95g/km or less, down from the current 130g/km.

The EU fleet averages are based on cars sold. While Tesla remains a minor player in Europe in terms of total car sales, its EVs could have a significant impact on FCA’s total fleet average because they don’t emit any CO2.

The European Commission website shows that FCA formed the pool with Tesla on 25 February. Neither firm has commented on how much FCA is paying Tesla, but the Financial Times, which first reported the story, said it totalled “hundreds of millions of euros”.

In a statement, FCA said the deal would “optimise the options for compliance that the regulations offer”. It added: “FCA is committed to reducing the emissions of all our products. The purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach.”

FCA has recently begun a major push towards electrification, unveiling a number of Jeep and Alfa Romeo plug-in hybrid models at last month’s Geneva motor show, along with the electric Fiat Centoventi concept. The firm is also developing a new electric Fiat 500, although this is not due to arrive until next year.

Tesla has yet to comment on the deal but, because it only produces electric cars that don’t emit any CO2, it would not have been affected by the EU regulations. The firm currently sells the Model S and Model X in Europe, with the Model 3 recently arriving in selected markets. 

Read more

All-new electric Fiat 500 to launch at Geneva 2020​

Tesla prices change again as Standard Range Model S axed​

Fiat Chrysler to settle diesel emissions lawsuits worth $650m​


Latest business news

Hydrogen tech fuel cell
Johnson Matthey makes just three of the 1000 parts in a hydrogen fuel cell but they're worth 20% of the fuel cell's value
Analysis: Will Johnson Matthey's hydrogen gamble pay off?
volkswagen project trinity autocar render front quarter
Thomas Schafer says VW needs more 'lighthouse' cars like the Trinity (Autocar render)
New Volkswagen CEO Schafer to make brand "loved" again
Toyota factory 2022
Toyota may pull out of UK manufacturing entirely if concessions are not made in post-2030 emissions regulations
What does the 2030 combustion ban mean for UK Toyota factories?

Read our review

Car review

The most affordable Tesla yet is tempting on the face of it, so should you yield or resist?

Join the debate

Add a comment…
digidata 18 May 2019


Thanks for sharing this information

Python Training in Pune

digidata 18 May 2019


Thanks for sharing this information

Python Training in Pune

Citytiger 10 April 2019

I see

the Tesla fanboys have gone very quiet all of a sudden, why is that?

Then again I see the anti Brexit pro EU mob have also gone quiet as well, very strange.. 

In the words of Delia Smith, "come on, where are you"