Monday, July 15, 2024
NewsStellantis to Change its Strategy in 14 States because of CARB

Stellantis to Change its Strategy in 14 States because of CARB

  • Stellantis is not stocking any ICE-powered models in 14 states.

  • Only direct orders can be delivered.

  • 4xe models from the Jeep lineup will be popular in those 14 states.


 

It’s a trend that’s sure to gain momentum over the coming months and years. With the tightening of North American vehicle emission standards, electrified or purely electric vehicles will take precedence over purely combustion-powered vehicles.

This is already the case with Stellantis vehicles, which no longer ship vehicles equipped with powertrains that run exclusively on gasoline… to some states. According to Automotive News, Stellantis, which includes the Jeep, Dodge, Ram, Chrysler, Fiat, Alfa Romeo and Maserati brands, will no longer be sending purely combustion-powered vehicles to 14 US states where emissions standards are the same as in California. In other words, these 14 other states follow the rules put forward by CARB (or the California Air Resources Board).

This decision would even be premature, as automakers are not required to comply with these rules, i.e. to sell a certain percentage of zero-emission vehicles, until 2026. This concentration of plug-in hybrid models – think Jeep Wrangler 4xe and Jeep Grand Cherokee 4xe – also affects dealerships in states that don’t have to meet CARB standards. According to the Automotive News report, dealerships in states that don’t meet CARB standards can no longer order PHEVs without a direct order from the consumer.

What’s clear is that this division of the US territory into CARB and non-CARB states will affect not only automakers’ business models, but also car dealerships, at least in the short and medium term.

Stellantis began modifying allocations for the two groups of states around two months ago. In April, the automaker informed its dealers that CARB member states were implementing stricter greenhouse gas standards, retroactive to the 2021 model year. These standards are distinct from the minimum sales requirements for zero-emission vehicles that will begin in 2026.

At the time of writing, almost 36% of the US population lives in the 14 CARB states, while four other states are currently working to adopt California’s standards. In these CARB states, dealerships will have to rely more heavily on a fleet rich in electrified powertrains. As for the other (non-CARB) states, it will be very difficult to obtain electrified models, as manufacturers will be concentrating mainly on states with stricter standards.

In short, this new reality is likely to be commonplace in a few months’ time, and it won’t just apply to vehicles from the giant Stellantis.

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