Stellantis CEO’s Firm Stand: No More Buying Credits, Goodbye HEMI V8s
Stellantis Will No Longer "Buy A Single Credit"...
In a bold move reflecting a significant shift in strategy, Stellantis CEO Carlos Tavares has declared an end to the era of purchasing emissions credits, a decision with far-reaching implications for the company’s iconic HEMI V8 engines.
For years, Stellantis, formerly Fiat Chrysler Automobiles (FCA), relied on buying emissions credits from Tesla to meet regulatory standards and avoid hefty fines. However, Tavares has drawn a line in the sand, stating that Stellantis will no longer “buy a single credit.” This signals a new direction for the company, one where it aims to self-regulate and accelerate its electric vehicle (EV) transition.
Speaking on the matter, Dodge // Ram CEO Tim Kuniskis emphasized Tavares’ unwavering stance during a recent interview, stating, “It’s not even a topic of discussion. We don’t buy credits, we’re not buying credits, we’re not going to do that.” Kuniskis highlighted the pressure this places on Stellantis to make tough decisions and adapt its plans dynamically, with monthly adjustments based on compliance trajectories.
“This is a game-changer for us. Not having that mental safety blanket really forces you to self-regulate; it forces you to make the tough calls,” Kuniskis added. “We literally adjust our plans on a monthly basis based on where we see the trajectory of compliance.”
The financial impact of this decision is substantial. Stellantis has been a significant buyer of Tesla’s emissions credits. Automotive News reports that Tesla made nearly $9 billion from selling such credits to other automakers, including FCA, over the last few years. This move from purchasing credits represents a fundamental shift in Stellantis’ financial strategy.
This seismic shift directly affects Chrysler, Dodge, Jeep®, and Ram enthusiasts, particularly those enamored with the legendary HEMI V8 engines. Kuniskis noted that without the fallback of purchasing credits, Stellantis has been compelled to reassess its powertrain strategy, leading to the discontinuation of the beloved HEMI V8 in favor of cleaner, more efficient alternatives like the Hurricane family.
“The decision to drop the HEMI engine wasn’t easy. We understand the emotional connection our customers have with it. But we have to move forward, and that means embracing new technologies,” Kuniskis explained.
“Ram is a good example of that,” Kuniskis continued. “We would still be selling and building the ancient iron block HEMI V8 that everyone loved. Knowing we are going into this environment forced us into a space where we had to develop a whole new powertrain strategy.”
Yet, questions linger about the feasibility of solely relying on EVs to offset V8 production, especially amidst sluggish EV sales and shifting market dynamics. Competitors like Ford, which opted to continue V8 production, and General Motors (GM), which invested $918 million into a new V8 and is reevaluating its EV strategy, added complexity to the landscape.
Indeed, Stellantis finds itself at a pivotal juncture, with Tavares’ resolute stance setting the tone for the company’s future trajectory. As Kuniskis hinted, Stellantis’s strategy remains fluid, subject to ongoing evaluation and adaptation, perhaps even influenced by broader geopolitical factors such as the outcome of the U.S. Presidential Election.
According to sources close to MoparInsiders.com, the HEMI engine won’t be totally gone from the Stellantis portfolio. The current 6.4-liter HEMI® V8 in the Ram Heavy Duty trucks will remain as the lone HEMI option.
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