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With new lower CO2 average targets looming, Fiat Chrysler Automobiles (FCA) has entered into an agreement with Tesla that will see both parties pool their fleets to reduce the overall average. From 2020 new EU emissions limits will come down to an average of 95g/km of CO2 per fleet.
Previous reports suggest that FCA's average CO2 emissions were putting it at serious risk of not reaching the target set out, which would result in substantial fines.
To help it avoid the potentially large fines, FCA has reached an agreement with Tesla, said to be worth hundreds of millions of euros to pool fleets to reduce the average CO2 levels. These open pool agreements are permitted under current EU laws.
An official statement from FCA on the matter stated: "FCA is committed to reducing the emissions of all our products. At the same time, we will optimise the options for compliance that the regulations offer."
At the time of publishing Tesla has refused to comment on the matter.
Telsa has reportedly made over €800m in the last three years by selling its carbon credits to other manufacturers in the United States.
FCA is planning to introduce more than 30 electrified models by 2022 across its Chrysler, Fiat, Jeep, Maserati and Ram brands in an investment worth €9bn. Plug-in hybrid variants of the Jeep Renegade and Jeep Wrangler models will come in 2020 along with an all-new fully electric Fiat 500 model, which is due to debut at the next Geneva Motor Show.