SHAME On WHO? Fiat Pays Tesla To Avoid EU Carbon Emissions Fines

According to the latest reports, some interesting business is going down in the European Union, Spies. That's because Fiat Chrysler Automobiles (FCA) and Tesla have come together in an interesting way.

Essentially, FCA knows the vehicles in its fleets will not meet the latest EU emissions. This translates into fines for FCA.

Tesla, on the other hand, has a zero-emissions fleet. In a rather creative way to raise money, Tesla has "opened up its pool (fleet)" so that any automaker can join its "open pool" and count their vehicles alongside Tesla's to offset its potential for fines.

In Tesla's defense that's one helluva way to bring in hundreds of millions of Euros into its coffers. One helluva capital raise. Although if you subscribe to Tesla's perspective that its' saving the world, clearly, this company is full of it.

FCA is simply pathetic for having to resort to this rather slimy tactic to get by.

That said, I've got to ask: SHAME on WHO? Who's dirtier for having done this deal?


**Special thanks to CANADIANCOMMENTS for tipping us off to this story



Italian carmaker Fiat Chrysler Automobiles NV (FCA) has agreed to pay electric carmaker Tesla Inc hundreds of millions of euros so that the vehicles of Tesla are counted in its fleet to avoid fines for violating new European Union emission rules, the Financial Times reported on Sunday.

The step will let the Italian carmaker offset carbon dioxide emissions from its cars against Tesla’s, by bringing down its average figure to a permissible level, the FT said.

The report did not mention further financial details of the specific amount that Fiat Chrysler has agreed to pay Tesla.
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MDarringer - 4/7/2019 10:29:29 AM

+6 Boost

If we are going to care about emissions, it should be illegal for this kind of fakery to exist.

Truthy - 4/7/2019 4:30:16 PM

+7 Boost

Absolutely! Another form of welfare.

TomM - 4/7/2019 7:45:50 PM

+2 Boost

I depends on what the law says.
The fact is - it has always been a Fleet Average from companies - and Companies have always traded with THEMSELVES to meet the standard. THis was never about individual cars on their own
So - the question is - what is different about two companies pooling their credits.
Obviously - this was meant to happen - if companies were not meant to do it - then they would not have allowed it in the law. I am surprised that Matt is taking the Socialists side on this one.

CANADIANCOMMENTS - 4/7/2019 10:31:48 AM

-2 Boost

I look at it this way, if the law allows firms in the EU to come together too pool their fleets to avoid fines, it sounds crazy on paper, but as the law is on the books, firms would be silly not to take advantage of it. If FCA is doing this, what is Aston Martin, Lamborghini and other supercar makers doing about these C02 regulations and associated fines? Or do they get a pass as their production volumes are so low?

MDarringer - 4/7/2019 11:10:09 AM

+5 Boost

Fundamentally in your argument, you are advocating for the appearance of compliance rather than actual compliance. Embedded in your argument is the reality that emissions are too tight already given that a diversity of product would not be possible with an everyone-must-pass stance. The ONLY reason this fakery exists is because of Liberal politicians who think you can solve everything by passing laws as if they are a magic wand.

Truthy - 4/7/2019 4:37:40 PM

+8 Boost

It is market manipulation. The government completely screwed this up with CAFE in the beginning. This allowed makers of small cars, mostly Japanese to use their credits to make big V8 engine cars (Lexus) while forcing US manufacturers to spend resources developing small cars that people did not want and discounting them at a loss to meet a number determined by politicians. The law of unintended consequences screwed US manufacturers.

CANADIANCOMMENTS - 4/7/2019 7:27:19 PM

-3 Boost

You can call it a slimey tactic if you want to. But if the tax returns of your sitting President are ever revealed, you will hear the same response. We followed the tax code and used the laws on the books to our best advantage to reduce the amount of tax /fines paid. If we paid less than you or, or nothing in some cases, it is because we are smarter and our accountants are smarter. Should tax loop holes exist? Nope. Should FCA be able to average down their fleet economy by pooling with another maker? Nope. But the law exists for now until it changes. You can't blame people for following it if they have the option.

MDarringer - 4/7/2019 9:39:19 PM

+7 Boost

So CommunistComments AKA AmericanWannabe do you support getting to the bottom of the extreme wealth of Pelosi, Feinstein, Schumer, Warren, and Waters to name but a few that could in NO WAY have amassed such a personal fortune from their reported income? You've been quiet on that so we're left to assume that your calls for justice are only aimed at politicians who are in the crosshairs of your bigoted hatred of them simply because you disagree with them and cannot tolerate freedom of speech. But then again, you've proven time and time again that you're a hypocrite.

CANADIANCOMMENTS - 4/8/2019 9:14:43 AM

0 Boost

@MD- I was drawing a line and showing the cases are parallel and the reasoning behind them will be the same. Both will say they used the law as it is and followed it to the letter to their own benefit. And their lawyers and accountants would back them up. It's easy to see if you look at it. But insulting people is more fun it seems on Autopsies. Onward we go...

Vette71 - 4/7/2019 10:41:53 AM

+7 Boost

That's how the regulations work. It's the same as electric companies buying credits from homeowners who install solar so that the electric companies can build and operate gas fired generating plants. Locally the environmentalists have forced the shut down of our nuke plant which generated 14% of state's electric power CO2 free,to be replaced by gas plants. That means the credit gravy train for solar homeowners goes on much longer than anticipated.

EVisNow - 4/7/2019 12:49:46 PM

-2 Boost

The pain of paying hundreds of millions of Euros to either Tesla or any other company that makes EVS, or even more to the government as fines, will drive FCA or other laggards to seriously develop EV to get off su h costs. As a public company, cost will drive FCA into this direction.
I would rather rule violators suffer stiff fines without other options, but it's free money for Tesla why not take it. The gravy train won't last because EU will continue to drive the emission limits lower and companies will have no choice but to build their own EVs.

Truthy - 4/8/2019 2:18:41 PM

+1 Boost

The point is, Tesla makes money off of this loophoe and tax subsidies, not making cars. With a level playing field, tesla sells dozens of cars annually.

Vette71 - 4/8/2019 8:53:10 PM

+1 Boost

Tesla via SolarCity also makes money off the electric company buying its solar credits. Indeed it was key part of the whole SolarCity cash flow model, which is why they focused their business on states where the laws support this.

hellowhatsyourname - 4/7/2019 3:16:11 PM

0 Boost

ALL of the OEMs are doing this in the US and everywhere else they can too

Foncool - 4/7/2019 6:44:21 PM

+9 Boost

And now you know the dirty little secret behind the Global Warming/Climate Change scam. It’s all about creating a market to sell carbon offset credits. Why do you think the EU, the Obama administration were pushing Cap and Trade, the Paris Climate Accord, it’s all a money grab. They are counting on the blind fanaticism of the true believers. Got to hand it to them they’ve figured out a way to sell Air, guess who pays for it in the end?

Truthy - 4/8/2019 2:21:21 PM

0 Boost

Actually, global warming is real and disconcerning. What "I invented the internet" = Gore did was over politize it. This created a reaction in the other direction.

MDarringer - 4/8/2019 9:04:46 PM

+1 Boost

Global warming is (1) not real and (2) debunked.

Foncool - 4/8/2019 10:14:24 PM

+1 Boost

“Actually, global warming is real and disconcerning.”

The truth of the matter is Truthy, Global Warming/Climate Change is just like everything else in the overall existence of life and nature in that it is a cyclical occurrence. Somethings have a large repeat cycle, others have a smaller cycle.

Have the polar ice caps melted before? Yes and they will refreeze and melt again. The thing that is really disconcerting is the arrogance of individuals that think their insignificance could actually effect nature on a planetary scale.

MDarringer - 4/7/2019 9:31:42 PM

+5 Boost

Amen, praise Jesus.

mini22 - 4/9/2019 7:31:54 PM

+1 Boost

I am amazed that the EU allows this loop hole to exist. That really does show it up as a scam. If the EU were serious it would not allow any company to link up with Tesla. They would have deal with this on their own merits. However I assume that because the EU is now so EV friendly and the fact that most car makers are getting into the EV game now they are allowing it. But if in fact that is the political slant of the EU then it should be a requirement that in order to team up with Tesla a company has to have a certain percentage of EV cars in the fleet to begin with.(The percentage yet to be determined). Well I guess if enough do it then its one way to keep Tesla going.