Stellantis Seeks to Strike Down Emissions Deal

Stellantis, the parent company of Chrysler, is trying to invalidate a 2019 emissions deal with rival automakers in California, citing a double standard that destabilizes its production schedules and jeopardizes the jobs of its 56,000 U.S. employees.

The California Framework Agreement, the automaker said, was developed secretly with some competitors, in direct violation of the California Administrative Procedure Act. The agreement excludes Stellantis, putting it at a competitive disadvantage, the automaker says.

Stellantis has petitioned the California Office of Administrative Law to overturn the California Air Resources Board agreement to "relieve Stellantis of the competitive disadvantages arising from our continuing exclusion and to preserve our ability to best serve our customers by fairly allocating our products to all states."

CARB intends to retroactively enforce greenhouse gas emissions standards for 2021 and 2022 model years against automakers, including Stellantis, according to Stellantis' filing. However, the automaker says the same regulations aren't being retroactively enforced against automakers in the voluntary agreement.

Ford, Honda, Volkswagen and BMW entered into the agreement to reduce vehicle emissions, and Volvo Cars, now owned by Geely of China, joined soon after, Reuters reported. Stellantis attempted to join the agreement later but was turned down, the news agency said.

Originally posted on Auto Dealer Today