Fiat Chrysler has purchased 6.5 million megagrams of greenhouse gas emissions credits from Tesla, Toyota and Honda, Reuters has revealed. A megagram is equivalent to 1,000 kilograms and is calculated through an automaker’s previous emissions saved.
The EPA says FCA would have still been within compliance of government emissions standards in the 2014 model year if it did not purchase the credits. The automaker previously purchased 1.7 million megagrams of emissions credits from Tesla, Nissan and Honda and acquired another 6.5 million at the end of 2014 from Tesla, Honda and Toyota.
In total, FCA has bought 8.2 million megagrams of emissions credits from other automakers. The Italian-American company has been reluctant to invest heavily in hybrid and electrification technologies due to the cost of developing such vehicles and the low consumer demand which surrounds them, but says it has “made significant strides – often exceeding industry averages – in improving the performance of those types of vehicles most preferred by our customers.”
Ferrari N.V., which FCA spun off in an IPO earlier this year and will sell its remaining shares in early next year, acquired 175,000 emissions credits in 2014 and has also purchased an additional 265,000 credits.