Stellantis Prioritizes Electric and Hybrid Vehicles in CARB States
Stellantis, the parent company of brands such as Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Ram, has reportedly stopped allocating gasoline-only vehicles to the fourteen states that have agreed to adhere to the emission standards set by the California Air Resources Board (CARB). This move is in line with the stricter greenhouse gas standards enforced by CARB retroactively to the 2021 model year. The allocation changes began about two months ago and prioritize powertrains based on how restrictive the local emissions standards are.
CARB standards exceed federal standards but have been embraced by coastal regions and are beginning to influence how the industry does business. About 36 percent of the US population lives in the 14 CARB states, according to 2023 Census Bureau estimates. Four additional states are adopting the California standards for future model years.
Dealerships situated in non-CARB states can no longer get models like the Wrangler 4xe and other plug-ins without a customer order. Meanwhile, dealerships in CARB states worry that they will be at a disadvantage if consumers start crossing state lines to buy gasoline vehicles from another store’s inventory rather than wait for a factory order. Some are working to trade for gasoline vehicles with stores in adjacent states.
Why is Stellantis bothering to comply with CARB standards if it doesn’t have to? Speculatively speaking, there’s money to be made if customers have to special order the vehicles they want. It may likewise help dealers push plug-in vehicles that might not be getting the right kind of love in other states and will undoubtedly provide a wealth of useful marketing data before certain regulations become mandatory.
EV fans seem willing to wait on the model they desire, but someone just seeking reliable transportation is less likely to do so and will frequently opt for something inexpensive that’s already on the lot. If you’re living in a CARB-aligned state, that model is now more likely to feature some form of electrification and presumably retail for more than what’s waiting for your peers in neighboring regions.
The states that currently follow emissions guidelines set by the California Air Resources Board are Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington. Those areas will no longer be issued combustion-only trims for models that offer a hybrid or all-electric alternative. Expect to see surging Jeep 4xe sales.
While the government is playing a significant role here, there’s nothing formally prohibiting Stellantis from conducting business as usual. Californian rules requiring automakers to sell a certain percentage of zero-emission vehicles weren’t supposed to come into play until 2026, and some of the states backing the CARB proposals don’t have any firm backing behind the scheme. Voters don’t typically have a say in these sorts of regulations beyond electing the person that signs off. Even the California Air Resources Board itself is composed primarily of members appointed by the state’s governor, who then make decisions about how to regulate automobiles.
In conclusion, Stellantis has stopped allocating gasoline-only vehicles to CARB states and prioritizes powertrains based on how restrictive the local emissions standards are. This move is in line with the stricter greenhouse gas standards enforced by CARB retroactively to the 2021 model year. Dealerships situated in non-CARB states can no longer get models like the Wrangler 4xe and other plug-ins without a customer order. While there’s nothing formally prohibiting Stellantis from conducting business as usual, complying with CARB standards may help dealers push plug-in vehicles that might not be getting the right kind of love in other states and will undoubtedly provide a wealth of useful marketing data before certain regulations become mandatory.
