California, Stellantis strikes vehicle emissions deal

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 of greenhouse gas emissions over the lifetime of the agreement and will also allow our US 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’s rules.

California Governor Gavin Newsom said the partnership “with Stellantis will help California achieve our ambitious goals to drastically cut pollution and get cleaner cars on the roads.”

(Reporting by David Shepardson; editing by Jonathan Oatis)