FCA looks at Chinese OEM to avoid emission fines
At Fiat Chrysler Automobiles’ annual meeting a few days ago, the company indicated that it may transfer emissions through its Chinese partner as it seeks to lower its fleet emissions in what is by far the world’s biggest car market. FCA is working closely with its Chinese partner Guangzhou Automobile (GAC) to balance its fleet in order to comply with emissions regulations in the market, CEO Mike Manley explained to shareholders at the meeting.
The plan follows FCA’s strategy in Europe to avoid fines for violating upcoming European Union CO2 reduction targets. The CEO confirmed that FCA has signed a ‘multi-year deal’ on emissions with Tesla in Europe. FCA has agreed to pay Tesla hundreds of millions of Euros to pool their vehicles and thereby offset CO2 emissions against Tesla’s electric cars in Europe and avoid EU fines.
In China, FCA has the possibility to transfer emissions through GAC and is looking into that option, Mike Manley went on to say. This kind of transfer is possible through a related parent company. GAC is considered a parent company to the FCA-GAC Chinese joint venture.