Stellantis has recently made a significant announcement regarding the shipment of vehicles powered solely by internal combustion engines (ICE). The company has decided to halt the shipment of these vehicles to 14 American states that adhere to the more stringent emissions regulations established by the California Air Resources Board (CARB).
Under this new policy, customers in these states can still purchase ICE vehicles. However, Stellantis will only send ICE vehicles to these states if an order has been placed, eliminating the option for customers to choose an ICE-powered model from outstanding dealer inventory.
Conversely, in states that follow emissions rules set by the federal government, Stellantis will not ship electrified models to dealers unless a customer has already placed an order. This move aims to ensure compliance with the California states’ and federal government’s different emissions standards.
In a statement to Automotive News, Stellantis clarified their decision, stating, “The communication to our dealers simply acknowledges the reality that we may need to adjust vehicle allocations among the California and Federal states to ensure that Stellantis complies with different standards in the California states.”
This decision by Stellantis is likely a result of the company not being a member of the agreement reached between CARB and five other automakers in 2020. Under this agreement, CARB considers the average emissions of the nationwide fleet of these automakers when assessing compliance with its rules. Since Stellantis did not join the agreement initially, its emissions are only measured based on the vehicles it sells in states adopting the CARB emissions standards.
However, the decision has surprised some dealers. Brian Maas, President of the California New Car Dealers Association, commented, “I think many of us expected when the CARB rules kick in meaningfully in 2026, we’d have some allocation challenges. The fact that it’s happening in the middle of 2023 is a bit of a surprise.”
Consequently, dealers in states such as Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Washington D.C., are receiving an abundance of Jeep® 4xe models.
“We’ve learned how to sell these, and they’re not that difficult to sell,” stated David Kelleher, a dealership employee in Pennsylvania. However, he added, “That being said, I still have customers that want gas.”
“We will continue to support our dealer network as they work to meet the needs of our consumers during this time, and we will continue to seek a level playing field for our company and our dealers,” affirmed Stellantis. “The ultimate solution rests with a program that allows compliance based on sales in all 50 states.”