Hyperdrive
Fiat to Pool Cars With Tesla to Meet EU Emissions Targets on CO2
- Carmaker likely paying Tesla more than $560 million: Jefferies
- Fiat lags behind in race to meet new CO2 standard from 2020
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Fiat Chrysler Automobiles NV is pooling its fleet with Tesla Inc. to comply with stricter European Union rules on carbon-dioxide emissions, in a deal that’s likely to pay the U.S. electric-car leader hundreds of millions of dollars.
Tightening EU regulations that kick in next year could cost Fiat 2 billion euros ($2.2 billion) in potential fines in each of 2020 and 2021, according to Jefferies analyst Philippe Houchois. In a statement, Fiat said cooperating with Tesla will give it flexibility to find “the lowest-cost approach.”