Stellantis will continue purchasing CO2 credits from a compliance pool led by Tesla in 2025 to meet European Union emissions reduction requirements. Despite the European Commission granting carmakers a three-year window to comply, Stellantis remains committed to leveraging all available options to avoid potential fines.
To address increasingly stringent regulations, automakers with lower electric vehicle (EV) sales have formed emission pools with leading players like Tesla and Polestar. Stellantis, Europe’s second-largest car manufacturer, joined the Tesla-led pool to offset its carbon footprint. The company’s European operations chief, Jean-Philippe Imparato, confirmed that Stellantis would make full use of the credit system this year.
Initially, EU regulators had planned for strict compliance with emissions targets in 2025. However, following pressure from European manufacturers, the Commission revised the policy, allowing compliance to be assessed over the 2025-2027 period instead of a single year. While this extension provides temporary relief, Stellantis acknowledges that it does not offer a long-term solution to the challenges of emissions compliance.
Currently, electric vehicles account for 14% of Stellantis’ European sales, falling short of the EU’s 21% target. The company recognizes the need to accelerate its electrification strategy to bridge this gap while continuing to explore credit purchases as a supplementary measure.
Alongside its emissions strategy, Stellantis is preparing to expand its hybrid lineup. Production of the new hybrid version of the Fiat 500 city car will begin at the Mirafiori plant in Turin this November. The automaker plans to produce 130,000 units annually, covering both hybrid and fully electric variants. This move aligns with Stellantis’ broader efforts to strengthen its electrified offerings while navigating regulatory pressures.
With the European automotive industry facing mounting emissions challenges, Stellantis is balancing regulatory compliance with strategic vehicle production. The company’s reliance on carbon credits highlights the ongoing transition toward a more sustainable fleet while underscoring the complexities of meeting regulatory demands. The coming years will be crucial as Stellantis continues investing in EV technology, adapting to shifting policies, and expanding its low-emission vehicle portfolio.
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