Stellantis Forges Emissions Accord With California, Pledges To Uphold 2030 Zero-Emissions Vehicle Sales Targets

In a significant development, automaker Stellantis STLA has struck an emissions agreement with the state of California. This comes after the company’s unsuccessful attempts to join a similar deal in 2019.

What Happened: Stellantis has committed to adhere to California’s zero-emissions, light-duty vehicle sales requirements through 2030, Reuters reported on Tuesday. This commitment stands even if the state cannot enforce its rules. Furthermore, Stellantis will not oppose California's authority under the Clean Air Act for its greenhouse gas emissions and zero-emission vehicle standards.

Previously, automakers like Ford, Honda, Volkswagen, and BMW had voluntarily agreed to similar emissions reductions with California in 2019, with Volvo Cars, owned by China’s Geely, joining soon after.

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In December, Stellantis challenged California’s refusal to allow it to join the agreement, citing that it had to cut some work in Michigan and Ohio at two SUV plants due to California emissions regulations.

Stellantis CEO Carlos Tavares said that the agreement “will avoid 10 to 12 million metric tons greenhouse gas emissions over the lifetime of the agreement and will also allow our U.S. customers to fully benefit from our advanced technologies.”

California Governor Gavin Newsom (D-Calif.) stated that the partnership “with Stellantis will help California achieve our ambitious goals to drastically cut pollution and get more clean cars on the roads.”

Why It Matters: The agreement between Stellantis and California is a critical step toward the state’s environmental goals. California has been at the forefront of pushing for stricter emissions standards, as evidenced by its request for EPA approval to ban gasoline-only vehicles by 2035. This move by Stellantis to join other automakers in the 2019 pact further solidifies the industry’s shift towards cleaner technology.

Moreover, the state’s collaboration with truck and engine manufacturers, including Stellantis, to achieve a 2045 zero-emission pledge underscores the collective effort to reduce air pollution and transition to zero-emission vehicles.

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