Stellantis and California Partner to Drive Carbon Emissions Reduction Efforts
Stellantis partners with California to reduce carbon emissions, aiming to avoid 10-12 million metric tons of greenhouse gases in the U.S. Customers to benefit from access to plug-in hybrids and battery electric vehicles, with plans for more EV models. The partnership includes educational efforts, EV awareness campaigns, and funding for public EV chargers.
The partnership between Stellantis and the California Air Resources Board (CARB) underscores a strategic push within the automotive industry towards electrification and sustainability. The industry is undergoing a significant transformation and Stellantis's commitment to expanding its electric vehicle (EV) lineup is indicative of the broader market trend. The investment of over €50 billion in electrification and the target sales mix for BEVs in Europe and the United States by 2030 reflect a proactive approach to meeting regulatory demands and consumer preferences. These moves may influence investor confidence in Stellantis's ability to adapt to a low-carbon economy and may position the company favorably against competitors in terms of innovation and market share growth in the EV sector.
Stellantis's plan to introduce new BEV models and its partnership aimed at reducing carbon emissions could potentially impact stock performance by signaling to investors the company's commitment to long-term growth and regulatory compliance. Moreover, the collaboration with CARB and Veloz for EV awareness and infrastructure development is a strategic move that could enhance the company's brand image and customer loyalty, potentially translating into increased sales and market penetration.
The agreement between Stellantis and CARB is a testament to the evolving landscape of environmental policy and corporate responsibility. The projected reduction of 10-12 million metric tons of greenhouse gas emissions aligns with global efforts to mitigate climate change. This partnership may serve as a benchmark for other states and countries, promoting similar collaborations that could lead to stringent regulations affecting the automotive industry.
Stellantis's pledge to help disadvantaged communities access EVs and to invest in public EV charging infrastructure is a significant step towards environmental justice and equity. These initiatives may not only improve public perception but also encourage other corporations to adopt more sustainable and socially responsible practices. The long-term implications for the industry could include a shift in consumer demand towards companies that prioritize sustainability, potentially influencing market dynamics and investment patterns.
The emphasis on expanding charging infrastructure as part of the Stellantis-CARB partnership has implications for the energy sector, particularly utilities and renewable energy providers. The additional $10 million investment in public EV chargers by Stellantis indicates a growing market for energy services related to EVs. This could stimulate further investments in grid modernization and renewable energy sourcing to meet the anticipated increase in electricity demand from EVs.
Securing approximately 400 GWh of battery capacity and establishing six battery manufacturing plants demonstrates Stellantis's commitment to supply chain resilience and could encourage similar investments by other automakers. The energy sector may see increased demand for battery components and raw materials, influencing commodity prices and the strategies of mining companies. The ripple effects of such large-scale commitments to electrification could be extensive, impacting various subsectors within the energy industry.
03/19/2024 - 04:31 PM
Stellantis and California Partner to Drive Carbon Emissions Reduction Efforts
Agreement will avoid 10-12 million metric tons of greenhouse gases in the United States Customers across the U.S. will benefit from having full access to the five plug-in hybrids and two battery electric vehicles available now, with eight new battery electric vehicles coming this year Stellantis will continue its efforts that promote electric vehicle awareness, expand charging infrastructure and drive dealer readiness AMSTERDAM, March 19, 2024 – Stellantis today announced a partnership with the California Air Resources Board (CARB) demonstrating the Company’s resolve to achieve its industry-leading ambition to be carbon net zero by 2038, aligned with its Dare Forward 2030 strategic plan.
As part of the agreement with CARB, Stellantis pledged to expand its ongoing commitment to strengthen its electrification offensive through educational efforts for U.S. consumers and dealers on the benefits of electric vehicles (EV). This includes collaborating with Veloz, the leader in promoting EV awareness efforts, providing discounted EVs to organizations in disadvantaged communities, and building upon ongoing efforts and contributing an additional $10 million for the installation of public EV chargers.
“Together, we have found a win-win solution that is good for the customer and good for the planet,” said Stellantis CEO Carlos Tavares. “This agreement will avoid 10 to 12 million metric tons of greenhouse gas emissions over the lifetime of the agreement and will also allow our U.S. customers to fully benefit from our advanced technologies, including five plug-in hybrids and two pure electric vehicles. We remain as determined as ever to offer sustainable options across our brand portfolio and being a leader in the global decarbonization efforts.”
“This partnership with Stellantis will help California achieve our ambitious goals to drastically cut pollution and get more clean cars on the roads,” said California Governor Gavin Newsom. “The biggest and most influential companies in the world understand that this is how we can fight climate change together, and it’s another example of the private sector joining California to help millions of people get into clean vehicles.”
“California’s work with leading manufacturers is an example of the collaboration that will clean our air, combat climate change and improve health outcomes for residents in the state,” said CARB Chair Liane Randolph. “Importantly, industry collaboration helps accelerate the deployment of zero-emissions options that will make a more sustainable future possible.”
“California’s persistent air pollution and the growing threat of climate change require action and innovation, and our collaboration with Stellantis is an example of the industry partnerships that will further a clean air future,” said CARB Executive Officer Dr. Steven Cliff. “Collaborations like this ensures healthier air for Californians and certainty for manufacturers.”
Stellantis currently sells five plug-in hybrids in the U.S., including the number one selling Jeep® Wrangler 4xe, Jeep® Grand Cherokee 4xe, Chrysler Pacifica Hybrid, Dodge Hornet and Alfa Romeo Tonale. Two pure electric vehicles are also available – FIAT 500e and Ram ProMaster EV. The Company plans to introduce eight new BEV models this year in the U.S., as part of its planned offering of 48 BEV nameplates globally by end of 2024.
As part of its Dare Forward 2030 €50 billion in electrification over the decade and targets reaching a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. To achieve these sales targets, the Company is securing approximately 400 GWh of battery capacity, including support from six battery manufacturing plants in North America and Europe. Stellantis is on track to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions.
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About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep ® , Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com.
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The partnership aims to drive carbon emissions reduction efforts, avoiding 10-12 million metric tons of greenhouse gases in the U.S.
Customers will have full access to five plug-in hybrids and two battery electric vehicles currently available, with plans to introduce eight new battery electric vehicles this year.
Stellantis is committed to promoting electric vehicle awareness, expanding charging infrastructure, and driving dealer readiness to support EV adoption.
Stellantis has pledged an additional $10 million for the installation of public EV chargers and is investing over €50 billion in electrification over the decade.
