Stellantis, the parent company of Chrysler, announced on Wednesday that it may limit shipments of gasoline-powered vehicles to dealers in states that have adopted California’s strict emissions rules. The company said that in order to comply with the more stringent standards, they may be forced to allocate fewer conventional gasoline engine vehicles to California states and more to other states that have not adopted the rules.
The California Air Resources Board, which sets emissions rules for the state, has asked the U.S. Environmental Protection Agency for approval for its rules adopted in August that would allow the state to ban the sale of gasoline-only powered vehicles by 2035 and require at least 80% electric-only models by then.
Stellantis is investing $35 billion to support the introduction of 25 electric vehicles by 2030 and has asked California about joining the agreement with other automakers that would allow Stellantis to comply with alternative California standards based on their nationwide sales. The company has previously been forced to pay federal penalties for not meeting U.S. fuel economy requirements.
The move by Stellantis is part of a larger trend of automakers transitioning to electric vehicles in order to meet emissions standards. It is yet to be seen how this will affect dealerships and consumers in the states that have adopted the California standards.