FCA Falling Behind on CO2 Emissions in U.S.

Fiat Chrysler Automobiles NV risks falling short of federal emission and fuel economy standards over the next few years because it sells too many big trucks and not enough small cars, Bloomberg News reports.

FCA ranked last between 2011 and 2014 in carbon dioxide emissions, according to the Environmental Protection Agency. In 2014, FCA averaged CO₂ emissions of 428 grams per mile compared with 302 g/mi for market leader Mazda Motor Corp. CO₂ emissions are directly related to fuel efficiency for vehicles that burn carbon-based fuel.

At the same time, current U.S. standards dictate a 50% jump to 54.5 mpg in average fuel economy for carmakers by 2025. Missing its target could result in fines against FCA as great as $55 per vehicle for every 1-mpg shortfall.

FCA has been slow to embrace hybrid and electric powertrain technologies that could help lower emissions and improve its fuel economy average.

Instead, the company has been offsetting its emissions shortfall mainly by buying credits from other carmakers that have surpassed their own targets. Over the past five years, FCA has purchased six times more credits than the next-largest buyer, according to EPA.

But experts tell Bloomberg those credits are becoming scarcer and more expensive. Analyst Maryann Keller tells the news service that FCA lacks the resources to meet future emission requirements. Her gloomy assessment: “It’s not a company that can survive in its present form.”