Published: Tue, April 09, 2019
Markets | By Otis Pena

FCA to pool Carbon dioxide emissions with Tesla to hit European Union target

FCA to pool Carbon dioxide emissions with Tesla to hit European Union target

Adding a few battery electric vehicles to the fleet, at least in a mathematical sense, will help a great deal to curb emissions.

The Italian automaker will leverage Tesla's zero-emission fleet in Europe to register lower than average emission figures.

The company declined to comment on a Financial Times report April 7 that it is paying Tesla hundreds of millions of euros for the arrangement. According to sources, it will pay hundreds of millions of euros to Tesla for the arrangement.

To meet the strict emissions standards, the rules allow carmakers to pool models within their own groups, or form "open pools" with other carmakers.

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This is also the final date for the United Kingdom to take steps to enable European Parliament elections to take place on May 23. A deal on an extension is expected to be agreed when European leaders gather in Brussels tomorrow evening.

Fiat Chrysler Automobiles (FCA) has struck a deal with Tesla Inc. to conform to tighter European Union emission regulations.

Under EU regulations, auto makers can join fleets together to meet the targets.

The carmaker continued: "FCA is committed to reducing the emissions of all our products. the purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach".

It could also be a significant boost to Tesla's finances, pulling in a major fee for allowing its vehicles to be used to help meet one of its great rivals meet its production targets. This being a very popular model for the manufacturer across the pond, it will allow FCA to reduce the average its fleet produces of Carbon dioxide per km below the 95-gram mark, thus making the company compliant with European norms for 2020. FCA is now readying the second-generation Fiat 500 2.0 for the European market, and it has confirmed that the model would be powered entirely by electricity. Currently, the entire fleet runs on pure petrol or diesel engines - FCA doesn't offer any hybrid or pure electric models, though it has promised an all-electric version of its next Fiat 500, as well as plug-in hybrid models of the Jeep Renegade and Compass.

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