This is the fourth consecutive year that Fiat Chrysler has been ranked last for carbon dioxide emissions by the Environmental Protection Agency.
Fiat Chrysler has begun making plans to ensure the carbon dioxide emissions sharply decline in this next year.
Fiat is facing some tough competition with richer automakers who are already much ahead in ensuring that they sharply decrease their vehicles’ carbon emissions. Fiat Chrysler may be forced to stop production of some of their light-duty vehicles. It is ironic that it is these light-duty vehicles that actually provide the company with most of its revenue. To be precise, 90% of the total revenue is derived from these light-duty vehicles.
There are multiple mandates that could be a threat to Fiat’s existence as well. The mandate in California states that 15% of the total auto sales should be from non-emission cars. There are even fuel-economy mandates that require a vehicle engine to operate at 50 miles per gallon. Fiat has been struggling with fuel economy since 1975! The EPA which regulates CO2 emissions does not levy fines for vehicles that emit excessive carbon dioxide but, with the rate at which Fiat is making profits from their carbon emitting light-duty vehicles, they may have to think about a new strategy.