Fiat Flags a $2 Billion Credit Bill That Will Be a Boon to Tesla
(Bloomberg) -- Fiat Chrysler Automobiles NV entered into various agreements in the first quarter to secure emissions-related regulatory credits that will cost the company 1.8 billion euros ($2 billion) over the next three years.
Chief Financial Officer Richard Palmer didn't identify any of the companies Fiat Chrysler is buying credits from during the company's first-quarter earnings call Friday. The Italian-American automaker said last month it had reached a deal to pool its fleet with Tesla Inc.'s to comply with stricter European Union rules on carbon-dioxide emissions.
Without making dramatic changes to its fleet that would have hurt profit, Fiat Chrysler probably would have had to pay a fine of about 390 million euros, Chief Executive Officer Mike Manley said on the call. “The route that we've taken has dramatically reduced that number and we will achieve compliance,” he said.
Around the globe, automakers are increasingly required to sell a greater portion of electric and other non-polluting vehicles. If manufacturers don't sell enough of them in jurisdictions including the U.S., European Union and China, they have to purchase credits from competitors like Tesla to make up the difference.
More: Tesla analyst miffed Musk neglected to mention credit sales
--With assistance from Tommaso Ebhardt.
To contact the reporter on this story: Gabrielle Coppola in New York at gcoppola@bloomberg.net
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Dan Liefgreen, Chester Dawson
©2019 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
