Stellantis, the automotive giant, has recently made a significant decision regarding its vehicle shipments to American states adhering to California Air Resources Board’s (CARB) stricter emissions regulations. The company has announced a halt in the shipment of vehicles solely powered by internal combustion engines (ICE) to 14 states that fall under CARB’s jurisdiction. These states include California, New York, Pennsylvania, and several others. However, customers in these states can still purchase internal combustion vehicles, but they must place an order as opposed to selecting from the dealer’s inventory.
Conversely, in states that follow emissions rules set by the federal government, Stellantis will not deliver electrified models to dealers unless a customer has already placed an order. Stellantis clarified this move, stating that it needs to adjust vehicle allocations between California and the federal states to ensure compliance with different standards. The company emphasized that this decision only acknowledges the reality of complying with varying emission standards in different regions.
It is important to note that Stellantis is not a member of the agreement reached between CARB and five other automakers in 2020. Under this agreement, CARB assesses compliance based on the average emissions of each automaker’s nationwide fleet. As Stellantis did not join the agreement initially, its emissions are currently measured only by the vehicles it sells in the states that have adopted CARB’s emissions standards. However, this unexpected decision by Stellantis has surprised some dealers.
Brian Maas, president of the California New Car Dealers Association, expressed his surprise, saying, “I think many of us expected when the CARB rules actually kick in in 2026 in a meaningful way that we’d have some allocation challenges. The fact that it’s happening [with Stellantis] in the middle of 2023 is a bit of a surprise.”
Consequently, dealers in Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Washington D.C. will have an abundance of Jeep 4xe models, thanks to the halted shipments. However, the situation may become more complex when fully electric vehicles like the Ram 1500 Revolution or the Dodge Charger Daytona SRT are introduced. Stellantis, nevertheless, assures its commitment to supporting its dealer network and meeting the consumers’ needs during this transitional period. The company also stresses the importance of establishing a program that allows compliance based on sales across all 50 states, seeking a fair and level playing field for both the company and its dealers.
As Stellantis takes this bold step in adjusting its vehicle allocations based on regional emissions standards, the automotive industry will closely observe the impact on dealers and consumer demand. The ultimate goal remains achieving a harmonized approach to emissions compliance throughout the United States.
