Stellantis may deliver fewer ICE cars to California and other US states in light of new standards

Stellantis may also increase EV allocations to states, including California

by brad-anderson

May 26, 2023 at 7:43 p.m.

Stellantis could sell fewer gasoline-powered vehicles in US states that have adopted California emissions standards.

In a memo issued to US dealers, the auto conglomerate said 13 states have adopted California’s standards and another four will follow suit in the coming years. In addition to selling fewer gas-powered vehicles in these states, it can increase electric vehicle allocations.

“We will continue to make available to you all the models made for your line,” the memo said. “In some circumstances, we may be forced to allocate more vehicles with electrified powertrains to the states of California to meet the more stringent standards that apply to the states of California.”

Read: Stellantis to close UK plants unless Brexit deal is reviewed

In the note, seen in its entirety by ReutersStellantis adds that “you may choose not to advertise some trim lines in certain states at certain times,” noting that the changes could “affect your ability to order or receive shipments of certain vehicles from time to time, including to fulfill sold orders.” “.

The move isn’t a particularly big surprise, particularly since Stellantis is investing $35 billion in electric vehicles and will introduce 25 new ones by 2030.

News of Stellantis’s move comes shortly after the California Air Resources Board (CARB) requested a waiver from the Environmental Protection Agency (EPA) to approve its plan to ban the sale of new gasoline-powered passenger vehicles and diesel by 2035. Additionally, California intends to begin setting incremental annual rules for zero-emission vehicles in 2026.

A large number of US states plan to follow the lead of California’s electric vehicles. These include Rhode Island, Washington, Virginia, Vermont, Oregon, New York, and Massachusetts. California will require 35% of new cars sold in the state to be hydrogen-powered or plug-in hybrid electric vehicles by 2026. This proportion will then increase to 68% in 2030 and 100% in 2035.

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Stellantis could sell fewer gasoline-powered vehicles in U.S. states that have adopted California’s emissions rules."
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In a memo issued with dealers across the United States, the automotive conglomerate noted that 13 states have adopted California’s standards and that another 4 will do the same in the coming years. In addition to selling fewer gasoline-powered vehicles in these states, it may increase allocations of electrified vehicles."
  [2]=>
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“We will continue making available to you all models manufactured for your line makes,” the memo said. “In some circumstances, we may be compelled to allocate more electrified powertrain vehicles to California states in order to comply with the more stringent standards being enforced in the California States.”"
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Read: Stellantis Will Close UK Plants Unless Brexit Deal Revised"
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In the memo, viewed in full by Reuters, Stellantis adds that it “may choose not to advertise some trim lines in certain states at certain times” and noted that changes could “impact your ability to order or receive shipments of certain vehicles from time to time, including to fulfill sold orders.”"
  [5]=>
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The move doesn’t come as a particularly big surprise, particularly since Stellantis is investing $35 billion into EVs and will introduce 25 new ones by 2030."
  [6]=>
  string(481) "



News of Stellantis’ move comes shortly after the California Air Resources Board (CARB) requested a waiver from the Environmental Protection Agency (EPA) to approve its plan to ban the sale of new gasoline and diesel-powered passenger vehicles by 2035. In addition, California intends to start setting yearly rising zero-emission vehicle rules in 2026."
  [7]=>
  string(404) "



A host of U.S. states plan to follow California’s electric vehicle lead. These include Rhode Island, Washington, Virginia, Vermont, Oregon, New York, and Massachusetts. California will require 35% of new cars sold in the state to be plug-in hybrids EVs, or hydrogen-powered by 2026. This proportion will then rise to 68% in 2030 and 100% in 2035."
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