Stellantis will continue purchasing carbon credits from a “pool” led by Tesla (TSLA.O) in 2025 to meet European Union CO2 emissions targets, despite a regulatory extension allowing compliance over a three-year period, the company’s European chief said.
Carmakers facing stricter EU emissions regulations have formed pools to offset their CO2 output, with companies that have lower electric vehicle (EV) sales purchasing credits from market leaders such as Tesla and Polestar. Stellantis, Europe’s second-largest automaker, has joined a Tesla-led pool that includes other manufacturers.
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While the European Commission recently relaxed compliance requirements, allowing automakers to meet their targets based on average emissions between 2025 and 2027 rather than just 2025, Stellantis’ Europe head Jean-Philippe Imparato confirmed the company will still rely on purchased credits. “I’ll use everything,” he said at an automotive event in Turin.
Stellantis’ current EV share in European sales stands at 14%, below the EUās 21% target. Imparato acknowledged the three-year compliance window “gives us some breathing space, but does not provide a solution.”
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The executive also announced that production of a new hybrid version of the Fiat 500 city car will begin at Stellantisā Mirafiori plant in Turin this November. The automaker aims for an annual production volume of 130,000 units, including both hybrid and fully electric versions of the model.