Stellantis Agrees to California EV Rules It Long Opposed
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Stellantis NV, owner of the Jeep and Ram brands, has agreed to strict rules to boost electric cars set by California and adopted by several other U.S. states that the carmaker has previously blasted for handing rivals an unfair advantage.
The California Air Resources Board, which regulates emissions in the nation’s most populous state, said the agreement will see the automaker slash emissions through the 2026 model year. The company has also agreed to comply with state requirements that battery-electric and other zero-emission vehicles account for a growing share of auto sales in the state through 2030. The company also will spend $10 million on charging infrastructure in California and other states that follow its emission rules.
The pact marks a stunning about face for Stellantis, which, along with companies such as General Motors Co. and Toyota Motor Co., pushed back on the state’s emissions rules during the administration of former President Donald Trump. For California policymakers, it could serve as a bulwark in the event that Trump is re-elected in November.
Trump, who relentlessly criticizes President Joe Biden’s pro-EV policies, has said he would end what he calls the president’s “EV mandate.” On March 14, Trump’s campaign declared the former president had “saved the auto industry,” while Biden’s “insane EV mandates would completely destroy it.”
As part of the pact, Stellantis will comply with California’s electric car mandates even if the policy can’t be enforced “as a result of judicial or federal action,” according to a statement from Democratic Gov. Gavin Newsom’s office.
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“This agreement is a big deal in accelerating and advancing our efforts,” Newsom said in a conference call with reporters.
Stellantis now joins other automakers, including Ford Motor Co., BMW AG and Volkswagen AG, that reached similar agreements with the state, which it previously petitioned to void.
In October, Stellantis alleged that California “improperly adopted” those accords in 2019, which allowed the manufacturers to voluntarily increase the average fuel economy of their fleets to about 50 miles per gallon by the end of the 2026 model year. Stellantis said then it tried to join the deal but was rebuffed by CARB.
Stellantis CEO Carlos Tavares said the accord is “win-win solution that is good for the customer and good for the planet.”
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