Fiat Chrysler Automobiles has said it will pay electric carmaker Tesla close to €2bn to help it meet tough new emissions targets and has reported a 29 per cent drop in first-quarter profits.
The company will purchase credits from Tesla to help it hit carbon dioxide goals and avoid large fines in the US and Europe, at an estimated cost of €1.8bn.
Carmakers across Europe are striving to meet a 2020 EU target of average car CO2 emissions of 95g per kilometre. In 2018, average emissions were 120.5g per kilometre, according to data supplier Jato Dynamics.
Fiat Chrysler aimed to meet this target without the need for credits from 2022, banking on a strategy of making its own cleaner vehicles, as well as hybrid and pure electric models, said chief executive Mike Manley.
About 80 per cent of FCA’s CO2 compliance would come from purchasing credits from Tesla in 2020, falling to around 15 per cent in 2021 as the company’s sale of battery and hybrid vehicles grew, he said.
--Financial Times
Submitted May 04, 2019 at 03:42PM by elemental_pineapple http://bit.ly/2J0ioYF
