Topline
Stellantis—the automaker behind Chrysler, Jeep, Dodge and Ram—agreed to comply with a California policy requiring two-thirds of new cars to be zero-emission or electric by 2030, potentially insulating the strict rule from challenges if former President Donald Trump returns to office and reprises his efforts to reverse California emissions standards.
Key Facts
Stellantis will cut emissions through the 2026 model year under the agreement, effectively avoiding the production of 12 million additional metric tons of greenhouse gas emissions, according to a statement from California Gov. Gavin Newsom’s office.
The automaker will also comply with California’s requirement to have zero-emission and plug-in hybrid vehicles comprise 68% of new light-duty vehicle sales by 2030, even if the California Air Resources Board can’t enforce the standards due to judicial or federal challenges.
Stellantis will also invest $4 million to produce public charging stations in California’s rural areas and its federal, state and county parks, in addition to another $6 million investment in other states that have adopted California’s emissions standards.
Stellantis, the fourth-largest automaker in the world, joins Ford, Honda, Volkswagen and BMW in agreeing to the emissions standards—all of which joined nearly four years ago.
Surprising Fact
Stellantis once resisted the California emissions deal after it was introduced as a voluntary agreement in 2019. The company said last year it tried to join other automakers in agreeing to the standards, but was rejected, and later petitioned against California. The company argued the standards gave competitors unfair advantages by allowing them to increase the full economy of their vehicles by about 50 miles per gallon by the 2026 model year, according to Bloomberg.
Key Background
With Stellantis now on board with the emissions agreement, the standards are bolstered against challenges that may come from a second Trump administration if the former president wins the election this year. Trump has openly pushed back against electric vehicle and greenhouse gas initiatives, believing them to be too restrictive on businesses. The former president has also said large car companies are too quick to “give into” electric vehicles, saying such automakers are “either stupid or they’re gutless.” While in office, Trump tried to take away California’s special permission to set its own emissions rules that are stricter than federal standards, a move reversed by President Joe Biden.
Further Reading
California Approves Ban On Gas-Powered Cars By 2035 (Forbes)
Stellantis, California Trump-Proof EV Sales Rules With Pact (Bloomberg)