Tesla has reached a deal worth hundreds of millions of dollars with Fiat Chrysler to bundle its fleet in Europe to avoid the latter and avoid fines for emissions requirements.
The European Commission has introduced average CO2 emissions demand of 95 g per kilometer in the automakers' fleets next year.
This means that vehicles sold by an automaker during the year will not need to be on average more than 95 g per kilometer, or they will be subject to substantial fines.  Of course, the addition of emission-free vehicles such as all-electric vehicles can help reduce the average considerably, but Fiat Chrysler is considered a retardant in the industry when it comes to launching purely electric vehicles
] As with the ZEV mandate in California, where automakers lag behind in the sale of electric vehicles, the EU can lend to other car makers with surpluses, allowing the EU to bundle their fleets to avoid fines.
Tesla had issued an invitation to car manufacturers to use their significant zero-emission fleet in Europe, and Fiat Chrysler accepted the offer following an update on the European Commission's website.
Neither company has disclosed the deal's financial data, but it's estimated at several hundred million.
Tesla's sale of carbon credits has proven to be extremely useful in raising his financials over the years The impact has been somewhat limited by the availability of loans and few markets in which they have been implemented ,
Now, this new system in Europe, which is a big market for Tesla, should have a bigger impact.
It's also a great time as Tesla is likely to be in significant liquidity crisis after a lackluster first quarter in 201
Although Fiat Chrysler has definitely lagged behind the rest of the industry, he is planning his own electric vehicle lineup and is unlikely to need Tesla's fleet in a few years.
But that's exactly the goal of these regulations. The more EVs the better.
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