Stellantis says new strategy will eliminate buying emission credits from Tesla


Stellantis does not want to buy regulatory emissions credits from Tesla any longer, and a new mentality that was recently adopted by the automaker will force the company to put its money and its EV plans where its mouth is.

Stellantis brand Fiat Chrysler Automobiles (FCA) has been a long-standing buyer of Tesla’s emissions credits, which have been a tremendous help in the company not having to pay hefty fines for not reaching emissions goals on an annual basis.

Tesla also pooled its emissions ratings with FCA in 2019, but for the last few years, it has instead bought the credits Tesla has sold for a profit. Tesla has made nearly $9 billion from selling emissions credits to other automakers that have not been able to keep up with stricter standards.

However, Stellantis wants to completely phase out buying emissions credits from Tesla, and in an attempt to meet those goals without the help of others, the company is adopting a new mentality.

According to a report from Automotive News Canada, Stellantis CEO Carlos Tavares is against buying Tesla credits from here on out. Instead, Tavares wishes to expand its EV offerings and adjust its strategy on a monthly basis, which will help it “self-regulate.”

CEO of the Dodge and Ram offerings, which are also under the Stellantis umbrella, Tim Kuniskis, said that Tavares recently stated that he won’t allow the company “to ever buy a single credit.”

“It’s not even a topic of discussion. We don’t buy credits, we’re not buying credits, we’re not going to do that,” Kuniskis said. “Not having that mental safety blanket really forces you to self-regulate; it forces you to make the tough calls, and we literally adjust our plans on a monthly basis based on where we see the trajectory of compliance.”

Stellantis is doing whatever it can to accelerate its EV transition through some manufacturers. It is also doing away with old, high-emissions platforms and engines, and attempting to clean them up. For example, it will drop the HEMI engine in favor of the Hurricane family, which has better fuel economy and lower emissions.

For EVs, Stellantis developed the STLA platform, which vehicles such as the all-electric Jeep Wagoneer S will sit upon.

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Stellantis says new strategy will eliminate buying emission credits from Tesla


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