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EU: Tesla makes deal with Fiat Chrysler to avoid emission fines

 |  April 7, 2019

Tesla has reached a deal reportedly worth hundreds of millions of dollars with Fiat Chrysler (FCA) to pool their fleet together in Europe for the purpose of the latter avoiding emission requirement fines, reported the financial times.

The move will allow FCA to offset CO2 emissions from its cars against Tesla’s, lowering its average figure to a permissible level. From next year, the EU’s target for average CO2 emissions from cars is 95g per kilometer.

In 2018, average emissions were 120.5g per kilometer, according to data supplier Jato Dynamics. FCA averaged 123g last year, according to UBS, which said the carmaker had the “highest risk of not meeting the target.”

Under EU rules, carmakers are allowed to pool emissions internally, allowing Volkswagen, for example, to offset VW, Seat, and Skoda emissions against those from Porsche and Audi cars. The rules allow rival companies to form so-called open pools but until now none have agreed to do so.

“For Europe, this is the first time that completely separate manufacturers have pooled their emissions together as a commercially viable compliance strategy,” said Julia Poliscanova, a senior director at Transport & Environment, a green-energy lobby and research group. “Once you’ve set up a pool, it is valid for several years.”

Full Content: Financial Times

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