Tesla Will Sell $500+ Million Worth of Vehicle Emissions Credits to Fiat Chrysler

Fiat Chrysler and Tesla have a deal where Tesla will sell carbon emission credits to Fiat Chrysler. The deal could be worth over $500 million to Tesla over 2 to 3 years. This will enable Fiat Chrysler to meet strict European vehicle emissions legislation.

Tesla qualifies for EU super-credits which allow a trade-off of electric car sales against ICE vehicles. Tesla has already sold $280 million dollars in 2017 in California.

Fiat Chrysler previously had an $8000 million fine in the USA for using software to falsely pass emission tests. Fiat Chrysler was looking at billions in EU fines without the Tesla deal.

Beginning in 2020, 95% of automotive fleet-wide emissions in the EU must average under 95g of CO2 per kilometer and have a fuel efficiency of about 57 mpg for internal combustion vehicles. In 2021, the vehicle full fleets must be compliant.

Fiat Chysler’s fleet is about 30 gram of CO2 per kilometer too polluting.

SOURCES- Wall Street Journal, Twitter
Written By Brian Wang, Nextbigfuture.com

9 thoughts on “Tesla Will Sell $500+ Million Worth of Vehicle Emissions Credits to Fiat Chrysler”

  1. No need to go to zero, there is a carbon budget based on the effects you think you can live with.

    The boat sailed, but still in sight of 2C above pre industrial levels with a probability of >66%. That objective equated to ~370ppm.

    Humans produce ~37billion tonnes of co2 per year, to prevent new accumulation we would need to reduce that by ~26billion tons.
    My money is still on not much is going to happen to change the status quo, excess emissions will continue until the worse case happens. Our only hope is some super duper tech will be created down the road to magically get rid of the excess co2 without cost.

  2. The linked story discusses a California lawsuit against FIAT just like the federal case against VW: cheating diesel emissions test

  3. Actually I’ve thought quite a bit about it since Volkswagen first flouted the oppressive emissions regulations and got fined. My thinking is that once emissions are reduced to a level where they are no longer harmful, there is no reason to drive that to zero and be uneconomical. The big gain was had with the first two orders of magnitude reduction in NOx, low sulfur fuel, and partially burnt hydrocarbons (catalytic converters, MFC, direct injection, computer control, etc). The air is good here in the United States – the problem is solved and we’re at a time of diminishing returns on more strict emissions. If you have a giant conglomerate that goes to the creative lengths of faking their way around emissions test, it shows that the tests and the requirements are unreasonable. They wouldn’t sell any cars if the car was a dog; if they complied with the regulations the car would be a gutless dog. it’s like ALARA (as low as reasonably achievable) driving up the cost of running nuke plants just because we can detect ever fainter traces of radiation. I know my argument isn’t airtight and I’m not going to waste any more time on it…

  4. In other words, Chrysler et al should be allowed to socialize the cost of their privatized profits. You feeloading types never fail to live up to my expectations.

  5. See, I read the article and take away from it another example of ‘out of control’ regulation.

  6. Love this system. ICE car producers end up directly subsidizing their EV producing competitors.  That is how it should be.

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