Stellantis, the automotive conglomerate, has announced that it may sell fewer gasoline-powered vehicles in US states that have adopted California’s emissions rules. In a memo issued to dealers across the country, Stellantis noted that 13 states have already adopted California’s standards and that another four will do so in the coming years. The company may increase allocations of electrified vehicles in these states to comply with the more stringent standards being enforced. Stellantis is investing $35 billion into EVs and will introduce 25 new ones by 2030.
Stellantis’ move comes after the California Air Resources Board (CARB) requested a waiver from the Environmental Protection Agency (EPA) to approve its plan to ban the sale of new gasoline and diesel-powered passenger vehicles by 2035. California intends to start setting yearly rising zero-emission vehicle rules in 2026. A host of other US states plan to follow California’s lead in promoting electric vehicles, including Rhode Island, Washington, Virginia, Vermont, Oregon, New York, and Massachusetts.
The memo issued by Stellantis also stated that it may choose not to advertise certain trim lines in certain states at certain times, and that changes could impact dealers’ ability to order or receive shipments of certain vehicles from time to time, including to fulfill sold orders. The move is not surprising given the trend towards electric vehicles and the increasing number of states adopting California’s emissions rules.
Stellantis is not alone in its shift towards electric vehicles. Other automakers, including General Motors, Ford, and Volkswagen, have also announced plans to invest heavily in EVs and phase out gasoline-powered vehicles. This shift is driven by a combination of factors, including government regulations aimed at reducing emissions and improving air quality, as well as consumer demand for more environmentally friendly vehicles.
The move towards electric vehicles is not without its challenges, however. One major obstacle is the lack of charging infrastructure, particularly in rural areas. This can make it difficult for consumers to make the switch to electric vehicles, as they may be concerned about running out of power on long trips or not being able to find a charging station when they need one.
Another challenge is the higher cost of electric vehicles compared to gasoline-powered vehicles. While the cost of EVs has been declining in recent years, they are still more expensive than traditional cars. This can make it difficult for some consumers to justify the higher upfront cost, even if they would save money on fuel and maintenance over the life of the vehicle.
Despite these challenges, the shift towards electric vehicles is likely to continue as governments around the world push for cleaner air and lower emissions. In addition, advances in battery technology and other areas are likely to make EVs more affordable and practical for a wider range of consumers. As a result, automakers that fail to invest in EVs risk being left behind in a rapidly changing market.
In conclusion, Stellantis’ announcement that it may sell fewer gasoline-powered vehicles in US states that have adopted California’s emissions rules is not surprising given the trend towards electric vehicles. Other automakers have also announced plans to invest heavily in EVs and phase out gasoline-powered vehicles. While there are challenges to the widespread adoption of EVs, including the lack of charging infrastructure and higher upfront costs, the shift towards electric vehicles is likely to continue as governments push for cleaner air and lower emissions.
