Stellantis announced on Wednesday that it might restrict shipments of gasoline vehicles to dealerships in states that have adopted California’s rigorous emissions regulations. In an internal communication to its dealers, the company highlighted the potential need to allocate fewer conventional gasoline-powered vehicles to California due to compliance obligations. Instead, it could prioritize supplying states that have not adopted the same emissions standards. This move by Stellantis underscores the challenges faced by automakers in navigating varying emission regulations across different regions.
The memo sent by Stellantis revealed that 13 states currently enforce emissions standards identical to those in California. In comparison, an additional four states plan to adopt similar measures in future model years. The California Air Resources Board (CARB), responsible for setting emissions rules within the state, refrained from immediate comment. Earlier this week, the board requested approval from the U.S. Environmental Protection Agency (EPA) for regulations that include a ban on the sale of gasoline-only vehicles by 2035 and a requirement for at least 80% electric-only models by that time.
The recently disclosed Stellantis policy, as the Delaware Business Journal reported, warned dealerships that limitations on gasoline vehicle shipments “may affect your ability to order or receive shipments of certain vehicles from time to time, including to fulfill orders sold.” Furthermore, Stellantis stated that it might choose not to advertise specific trimlines in certain states during certain periods, potentially impacting the availability of those trimlines for dealerships. A trimline refers to a particular version of a model, typically varying in features and price range.
Amidst these developments, Stellantis reaffirmed its commitment to electric vehicles (EVs). The company disclosed plans to invest $35 billion in supporting the introduction of 25 EV models by 2030. Stellantis also expressed its willingness to collaborate with California and another automaker, aiming to establish alternative emissions standards based on domestic sales. This proposal seeks to ensure a level playing field for Stellantis and its dealerships.
Fourteen states, including Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, as well as the Washington D.C. district, have adopted California’s CARB regulations.