New and tighter EU regulations will be introduced by the government regarding CO2 emissions from the next year.
Fiat Chrysler Automobiles is trying to gain the support from Tesla for which it has decided to pay hundreds of millions of euros to include all the electric vehicles manufactured by Tesla under its fleet. This will help FCA to escape from the heavy penalties for violating upcoming EU emission regulations. Through the fleet collaboration, the higher emission by FCA’s manufactured vehicles will be counterbalanced by Tesla’s zero emission vehicles, maintaining the figure to the approved level.
Last year’s average emission rate analyzed by Jato Dynamics was 120.5g for a kilometer; and according to UBS, the average emission rate per FCA vehicle was around 123g. The data revealed that with such emission rate carmaker would not be able to meet the target set in the coming EU regulations.
In the Year 2020, the EU will be setting an average emission rate of 95g CO2 per kilometer. To maintain this emission rate, FCA is trying to include zero emission Tesla vehicles under its fleet.
However, it has already been mentioned under EU rules that automakers are allowed to merge internally in order to balance the emission rates as per the target; but no one except FCA has agreed for the collaboration.
FCA is preparing to introduce its own manufactured electric and hybrid vehicles in the coming years, but currently, the company is lagging behind in this part as compared to its rivals. Therefore, without the agreement with Tesla, it will be near to impossible for FCA to survive in the UK automotive market.
This collaboration between FCA and Tesla is already declared on the European Commission website, in which it is mentioned that Tesla automobiles would be added up in FCA’s fleet of few brands that comprise Maserati, Jeep, and Alfa Romeo.