Chrysler’s parent company, Stellantis [STLA:US], has reached an emissions agreement with California after unsuccessfully attempting to join a prior deal made by other automakers in 2019, as reported by Reuters on March 19. Under this new agreement, Stellantis commits to complying with California’s zero-emissions vehicle sales requirements through 2030, even if enforcement becomes challenging. Additionally, the company agrees not to oppose California’s authority under the Clean Air Act regarding greenhouse gas emissions and zero-emission vehicle standards.

Stellantis CEO Carlos Tavares stated that this agreement would help avoid 10 to 12 million metric tons of greenhouse gas emissions and enable U.S. customers to benefit from advanced technologies. The deal allows Stellantis to align with other automakers in adhering to California’s regulations based on national sales. Governor Gavin Newsom praised the partnership, emphasizing its contribution to California’s goals of reducing pollution and promoting clean vehicle adoption.

Sources:

https://www.reuters.com/business/autos-transportation/california-stellantis-strike-vehicle-emissions-deal-2024-03-19/