Fiat and Tesla to join forces to comply with EU emissions laws
Tightening EU rules that come into force in 2020 could cost Fiat €2bn in potential fines in 2020 and again in 2021
Rome/Milan — Fiat Chrysler Automobiles is pooling its fleet with Tesla to comply with stricter EU rules on carbon-dioxide emissions, in a deal that is likely to pay the US electric-car leader hundreds of millions of dollars. Tightening EU regulations that come into force in 2020 could cost Fiat €2bn in potential fines in each of 2020 and 2021, according to Jefferies analyst Philippe Houchois. In a statement, Fiat said co-operating with Tesla will give it flexibility to find “the lowest-cost approach”. The Italian-American car maker is behind on meeting the new standard, and the so-called open pool option available at the EU allows vehicle makers to group their fleets together to meet the targets. Payments to Tesla, whose electric cars do not produce carbon dioxide emissions, may amount to more than €500m, according to Jefferies. Compliance has gotten harder for vehicle makers with a move by consumers toward petrol cars, which emit comparatively more carbon dioxide, since Volkswagen’...
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