What's Happening?
Stellantis, under the leadership of Carlos Tavares, has been shifting away from its popular V-8 cars in the U.S., including the Dodge Durango Hellcat. The California Air Resources Board (CARB) has set its own emissions standards, which are followed by 17 other states and Washington, DC. As a result, Dodge cannot sell the Durango R/T or SRT Hellcat in these CARB states. The Durango GT with a 5.7-liter Hemi remains available nationwide, while the R/T 392 and SRT Hellcat are restricted to non-CARB states. Stellantis had previously moved away from V-8s but has recently reintroduced them following changes in fuel-economy regulations under the Trump Administration.
Why It's Important?
The restrictions imposed by CARB highlight the ongoing tension between state-level environmental regulations and federal policies. For Stellantis, this means navigating complex regulatory landscapes to market its vehicles. The inability to sell certain models in CARB states could impact sales and market strategy, especially as the company attempts to reintroduce V-8 engines. This situation underscores the challenges automakers face in balancing consumer demand for powerful engines with regulatory compliance aimed at reducing emissions.
What's Next?
Stellantis is working with CARB to explore opportunities to sell the Durango R/T 392 and Hellcat models in all states. As production of the Durango SRT Hellcat Jailbreak begins later in the year, the company aims to open orders for the Durango R/T 392. The outcome of these negotiations could influence future sales strategies and regulatory approaches for Stellantis and other automakers facing similar challenges.
