Stellantis NV (NYSE:STLA) has announced a cut in workforce at its Jeep manufacturing facilities in Detroit and Toledo, attributing the decision to California’s tough emissions requirements.
What Happened: As reported by Bloomberg on Dec. 7, 2023, Stellantis is reducing Jeep production due to anticipated fewer sales of gasoline-powered cars, particularly in states aligning with California’s emissions standards. The automaker complained to California’s regulators, asserting that the state’s rules put it at a competitive disadvantage.
Automakers are currently resisting the Biden administration’s efforts to boost fuel efficiency and accelerate the shift to electric vehicles. The auto industry argues that these stringent norms may lead to fines worth billions of dollars.
Stellantis claims that California wrongly approved a 2019 pact between state regulators and four automakers, which allowed these manufacturers to voluntarily augment their average fuel economy to approximately 50 miles per gallon by 2026.
Despite its slower shift to ...