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Tesla makes agreement with Fiat Chrysler to swim the fleet for EU emission requirements



Tesla has reached an agreement worth having hundreds of millions of dollars with Fiat Chrysler to merge their fleet together in Europe, with the aim of avoiding the latter's emission penalties.

The EU Commission is launching an average CO2 emission requirement of 95 g per kilometer in car manufacturers' fleets next year.

This means that cars sold by a car manufacturer during the year do not need to be more than 95 g per kilometer or they are subject to significant fines. [19659003] Of course, adding zero emission vehicles, like all electric cars, to the mix, can help bring the average down significantly, but Fiat Chrysler is seen as a lagoon in the industry in bringing all electric cars to market .

As with the California ZEV mandate, where automakers fall behind in the sale of electric vehicles, can buy credits from other automakers with a profit, the EU allows automakers to collect their fleet t to avoid fines.

Tesla sent out an invitation to automakers who could use their important zero-emission fleet in Europe, and according to an update on the EU Commission website, Fiat Chrysler took them on offer.

None of the companies revealed the financing of the agreement, but it is estimated to be worth hundreds of millions of euros.

Electrek's Take

Tesla's sale of emission credits has been very helpful in helping to boost the economy over the years, but the impact has been somewhat limited by the availability of credits and only a few markets that implement them.

Now, this new system in Europe, which is a big market for Tesla, will have a greater impact.

It also comes at a great time when Tesla is believed to be under a substantial cash crunch after a missing first quarter of 201

9.

Having said that, Tesla should not expect it to last too long because car manufacturers do not like to send money to those competitors.

Although they have definitely fallen behind the rest of the industry, Fiat Chrysler is planning its own series of electric vehicles, and they will probably not need Tesla's fleet in a few years.

But that is precisely the goal of these regulations. The more EV's, the better.


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