Stellantis has made the decision to stop stocking gasoline vehicles in most CARB-compliant states, according to reports. These states are the ones that follow the emissions guidelines set by the California Air Resources Board (CARB), which have more stringent standards compared to the nationwide regulations. The company has stated that dealerships in these states will only receive gasoline vehicles if they have been specifically ordered by customers. Similarly, dealerships in other states will no longer receive plug-in vehicles without a customer order.
This means some dealerships will stop automatically receiving gasoline-only vehicles like non-hybrid Jeep Wranglers or Jeep Grand Cherokees from Stellantis. However, dealers in some CARB states still have vehicles allocated that have no electrified version, such as the Wagoneer. Simply put, CARB state customers will have to resort to placing an order if they want a new gas-only powered vehicle.
Stellantis began implementing allocation changes about two months ago. The company informed dealerships in April that CARB states would enforce stricter greenhouse gas standards retroactively from the 2021 model year, which is separate from the zero-emission vehicle sales requirements set to begin in 2026. Over 36% of the U.S. population resides in CARB states, and four more states plan to adopt California’s standards for future model years.
Dealerships in CARB states express concerns that customers might choose to purchase gasoline vehicles from out-of-state dealerships rather than wait for factory orders, potentially putting them at a disadvantage. Some dealerships are even exploring options to trade gasoline vehicles with neighboring states’ stores. Brian Maas, president of the California New Car Dealers Association, highlighted that the early implementation of changes by Stellantis caught many by surprise, according to AutoNews. He anticipates that consumers who desire gasoline Wranglers may go to nearby non-CARB states like Nevada or Arizona to make their purchases.
Stellantis justified the changes in allocation by explaining that the company is not part of the 2020 agreement between CARB and five other automakers, which applies to the 2021-2026 model years. Stellantis reportedly approached California to join the agreement shortly after its formation in January 2021 but was informed that new members were not being accepted. The automakers that signed the framework are allowed to meet the standards based on their nationwide average, while Stellantis and others must comply solely with the vehicles sold in CARB states. Stellantis emphasized its commitment to support its dealer network and seek a level playing field across all states.
The move by Stellantis reflects the increasing emphasis on electrified vehicles in California, where efforts are being made to significantly increase their presence on the roads. CARB regulations stipulate that zero-emission vehicles and plug-in hybrids should account for 35 percent of light-duty sales in the 2026 model year, with targets of 68 percent in 2030 and 100 percent in 2035. The changes made by Stellantis in response to these requirements illustrate the uncertainties faced by both dealerships and manufacturers during the ongoing transition to electric vehicles.
Dealerships in states affected by the changes are experiencing the challenges brought about by this transition. The lack of clear answers from the manufacturer reflects the ongoing learning process and adjustment required in this evolving landscape.
Source: AutoNews (Subscription Required)
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