Tuesday , May 18 2021

Tesla concludes a contract with Fiat Chrysler to gather a fleet for EU emissions

Tesla has reached a hundred million dollar agreement with Fiat Chrysler to gather its fleet in Europe to avoid a financial punishment.

The European Commission establishes an average need for CO2 emissions of 95 g / km in the fleet of car manufacturers next year.

This means that on average the car that the car sells during the year must be no more than 95 g per kilometer or be exposed to significant fines.

Of course, adding vehicles with zero emission, such as fully electric vehicles, to the blend can help cut the average considerably, but Fiat Chrysler is considered to be behind the industry when it comes to bringing fully electric vehicles to the market.

As with the ZEV mandate in California, where automotive manufacturers who are behind the sale of electric vehicles can buy loans from other car manufacturers with excess, the EU allows manufacturers to join their fleet in order to avoid fines.

Tesla has sent a call to car makers who could take advantage of his important N-emission car park in Europe, and according to the latest information on the European Commission website, Fiat Chrysler has taken them into account.

None of these companies have disclosed the financial details of the contract, but it is estimated that it is worth hundreds of millions of euros.

Electrek's Take

Tesla's sales of emission credits were extremely helpful in increasing its financial value over the years, but the impact is somewhat limited in the availability of loans and only a few markets that implement them.

This new system in Europe, which is a major market for Tesla, should have a greater impact.

It also comes in a long time because it is believed that Tesla is under a major financial crisis after the first close quarter of 2019.

However, Tesla should not expect to take too long because car makers do not like to send money to their competitors.

Although they are definitely behind the rest of the industry, Fiat Chrysler plans its own electric vehicle composition and will probably not need a Tesla fleet for several years.

But that is precisely the purpose of these regulations. The more EVs the better.

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