Auto manufacturer Stellantis recently announced a partnership with the California Air Resources Board (CARB) in an effort to achieve its goal to be carbon net zero by 2038, aligned with its Dare Forward 2030 strategic plan.
In its agreement with CARB, Stellantis pledged to expand its ongoing commitment to strengthen its electrification plans through educational efforts for U.S. consumers and dealers on the benefits of electric vehicles (EV). The manufacturer’s plans include collaborating with Veloz, which promotes EV awareness efforts, providing discounted EVs to organizations in disadvantaged communities, and building upon ongoing efforts and contributing an additional $10 million for public EV charger installation.
“Together, we have found a win-win solution that is good for the customer and good for the planet,” Stellantis CEO Carlos Tavares said in a statement. “This agreement will avoid 10 to 12 million metric tons of greenhouse gas emissions over the lifetime of the agreement and will also allow our U.S. customers to fully benefit from our advanced technologies, including five plug-in hybrids and two pure electric vehicles. We remain as determined as ever to offer sustainable options across our brand portfolio and being a leader in the global decarbonization efforts.”
“This partnership with Stellantis will help California achieve our ambitious goals to drastically cut pollution and get more clean cars on the roads,” California Governor Gavin Newsom said in a release. “The biggest and most influential companies in the world understand that this is how we can fight climate change together, and it’s another example of the private sector joining California to help millions of people get into clean vehicles.”
Stellantis currently sells five plug-in hybrids in the U.S., including the Jeep Wrangler 4xe, Jeep Grand Cherokee 4xe, Chrysler Pacifica Hybrid, Dodge Hornet and Alfa Romeo Tonale. It also offers two pure electric vehicles – FIAT 500e and Ram ProMaster EV. The manufacturer plans to introduce eight new BEV models this year in the U.S., as part of its planned offering of 48 BEV nameplates globally by end of 2024.
Additionally, Stellantis announced it plans to invest more than $63 billion in vehicle electrification over the decade as part of its part of its Dare Forward 2030 strategic plan. The company will aim to reach 100 percent passenger car battery electric vehicle (BEV) sales mix in Europe and 50 percent passenger car and light-duty truck BEV sales mix in the United States by 2030.
To achieve these sales targets, Stellantis is securing approximately 400 GWh of battery capacity, including support from six battery manufacturing plants in North America and Europe. Stellantis is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
“California’s work with leading manufacturers is an example of the collaboration that will clean our air, combat climate change and improve health outcomes for residents in the state,” said CARB Chair Liane Randolph. “Importantly, industry collaboration helps accelerate the deployment of zero-emissions options that will make a more sustainable future possible.”
How California’s EV mandates could impact national ones
While Stellantis and CARB celebrated its newfound partnership, there’s concerns about how this deal impacts U.S. customers, according to a recent Wall Street Journal Editorial Board opinion column. Concerns revolve around the fact that CARB aims to rid California of new gas-powered car sales by 2035, meanwhile the Clean Air Act waiver from the Environmental Protection Agency (EPA) allows the state to set its own greenhouse gas emissions standards — and other states are permitted to follow them.
“While California is waiting on the EPA to extend its waiver through 2035, its EV mandate is already creating headaches for car companies,” The Wall Street Journal Editorial Board wrote.
Stellantis noted last year that it was forced to deliver less gas-powered vehicles to California and approximately a dozen other states that adopted its rules, The Wall Street Journal reports. Additionally, the manufacturer said CARB retaliated against it when it supported former President Trump’s rollback of former President Obama’s emissions standards and California’s EPA waiver.
During its legal battle with the Trump Administration, CARB reached deals with Ford, BMW, Honda, Volvo and Volkswagen that put its competition, including Stellantis, at a “regulatory disadvantage.” The deal — the manufacturers voluntarily follow California’s mandate and don’t take part in any trade-association legal challenges to it. In return, CARB lowered the auto makers’ EV quotas and penalties for non-compliance. Manufacturers could also contribute to a state “trust account” to “promote electrification and reduce GHG emissions” in place of paying heavier fines.
Manufacturers who accepted the deal saw their bet pay off when President Biden restored California’s waiver, while those who did not now find themselves at a regulatory disadvantage, The Wall Street Journal reports.
When Stellantis wanted to partake in this deal, CARB wouldn’t permit it—until the auto maker filed a petition with the state Office of Administrative Law that accused CARB of operating an “underground regulatory scheme” and violating its First Amendment rights.
Now, California and Stellantis have agreed to the aforementioned deal that requires the manufacturer to abide by California’s EV mandate even if it is blocked by a court or a future Trump Administration. Stellantis will get the same regulatory flexibility other auto makers enjoy in return.
“The biggest losers of this ‘partnership’ with California will be Americans across the country who will have fewer gas-powered options,” The Wall Street Journal Editorial Board wrote. “California is imposing its EV mandate nationwide by using regulation to take auto makers hostage. Mr. Newsom may not be running for President in November, but he already acts as if he governs the country.”
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