Stellantis ends Calif. emissions dispute with $4.2M settlement, Ram recalls

Stellantis will pay $4.2 million to California over excess emissions following an investigation into some Ram vehicles.

Driving the news: The settlement comes after Stellantis installed a device that evaded emissions detection, according to the California Air Resources Board (CARB).

• As a result, several Ram models produced 55 more tons of greenhouse gases than was allowed. The affected vehicles include Ram ProMaster 1500s, 2500s and 3500s made between 2014 and 2016. All vehicles used diesel engines.

• Part of Stellantis’ settlement includes a $2 million payment to California’s Air Pollution Control Fund. The automaker has also agreed to recall the models in question to fix the issue.

Zooming in: While hardly an exception, Stellantis and CARB authorities have frequently collided over pollution.

• The brand previously settled with California in 2022 over excess emissions in (non-diesel) internal combustion engine (ICE) vehicles, agreeing to pay $5.6 million.

• Even prior to the merger that created Stellantis in 2021, Fiat-Chrysler also faced pressure from California authorities. The company paid $78 million to the state over an emissions investigation involving 100,000 diesel vehicles.

Looking ahead: California’s air pollution policies, embraced by some state legislatures and ridiculed by others, are some of the most aggressive.

• However, while these regulations have already forced automakers to change their approach to controlling emissions, they will face an uncertain road ahead following President-elect Donald Trump’s inauguration next month.

• Trump’s transition team has recommended that states be banned from implementing their own emissions policies.

• While California just received approval from the Environmental Protection Agency to ban ICE vehicles, it is likely facing a long battle with the incoming administration as well as the greater auto industry over its plan to combat pollution.

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