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FCA CO2 strategy continues to mean pooling with other brands, report says – Roadshow

FCA is going to pool its emissions with its Chinese joint venture partner GAC, in addition to buying credits from Tesla.

FCA

Not long ago we reported that Fiat Chrysler was going to offset its emissions in Europe by buying a big ol' pile of emissions credits from Tesla. It looks as though this will be an ongoing global strategy for the brand.

Specifically, Automotive News Europe reports that FCA is going to pool its emissions with its Chinese joint venture partner Guangzhou Automotive, aka GAC, which you might remember from our Detroit Auto Show coverage. In China, the GAC-FCA partnership is responsible for building Jeeps in that market.

This is an interesting strategy, especially since FCA hasn't committed to building any zero-emissions vehicles in the immediate future. That means that these deals to share emissions won't be one-time arrangements.

"FCA is committed to reducing the emissions of all our products. At the same time, we will optimize the options for compliance that the regulations offer," a company spokesperson said in a statement. "After all, the whole point of a CO2 credit market is to leverage the most cost-effective ways to reduce overall GHG emissions in the market. The purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach."

This isn't for lack of technology though, according to FCA chairman John Elkann. "Just because you have the ability, you do not necessarily have to build products that will not be profitable," he said.

Weird flex, John, but OK.

Buying emissions credits is a standard practice across the car industry, and while we don't want to single FCA out for engaging in the practice, these recent moves with Tesla and GAC seem to be on a larger scale than we've seen before.

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