PARIS — Ahead of their pending merger, Fiat Chrysler Automobiles and PSA Group have formed an emissions pool for light commercial vehicles that will allow them to combine sales for the purposes of meeting EU greenhouse gas reduction goals.
FCA is the manager of the pool, according to European Commission documents posted this week. It is an open pool, meaning that other automakers can join, with a deadline of Nov. 26.
Many automakers that sell in Europe have created or joined such pools in an effort to avoid heavy fines for not meeting the 2020-21 fleet emissions average, which is 95 grams of CO2 per km for passenger cars and 147 g/km for light commercial vehicles, most of which are diesel powered. PSA has introduced a range of battery-electric medium commercial vans this year.
PSA Group CFO Philippe de Rovira said Wednesday that the two automakers established the pool “on market price conditions” to avoid competition issues ahead of their pending merger. “We’ve made a contract at arm’s length,” he told analysts on PSA’s quarterly results call. Automakers are free to reach any financial arrangement according to European Commission regulations.
The FCA-PSA pool includes PSA Group as a whole and its Citroen, Peugeot and Opel brands. For FCA, the listed entities are FCA Europe, FCA US and the Alfa-Romeo brand.
EU regulators are examining the commercial van market share of the future combined company, to be called Stellantis. Earlier this week, Reuters reported that PSA’s proposed remedy of boosting sales of Toyota vans, which it builds under contract, would receive preliminary approval after being market tested.
The merger is expected to close by the end of the first quarter of 2021.
The creation of the pool could signal that PSA and FCA are confident that their light-commercial vehicle strategy will withstand antitrust scrutiny. The automakers have a joint venture, Sevel in southern Italy, that builds larger commercial vans, and Fiat…