(Reuters) – Franco-Italian carmaker Stellantis expects to attain its European carbon dioxide (CO2) emissions targets this yr with out environmental credit purchased from Tesla, its CEO mentioned in an interview printed on Tuesday.

FILE PHOTO: The emblem of Stellantis, the world’s fourth-largest automaker which begins buying and selling in Milan and Paris after Fiat Chrysler and Peugeot maker PSA finalised their merger, is seen on a flag on the essential entrance of FCA Mirafiori plant in Turin, Italy, January 18, 2021. REUTERS/Massimo Pinca

Stellantis was fashioned by means of the merger of France’s PSA and Italy’s FCA, which spent about 2 billion euros ($2.40 billion) to purchase European and U.S. CO2 credit from electrical car maker Tesla over the 2019-2021 interval.

“With {the electrical} expertise that PSA dropped at Stellantis, we’ll autonomously meet carbon dioxide emission rules as early as this yr,” Stellantis boss Carlos Tavares mentioned within the interview with French weekly Le Level.

“Thus, we is not going to have to name on European CO2 credit and FCA will now not must pool with Tesla or anybody.”

California-based Tesla earns credit for exceeding emissions and gasoline economic system requirements and sells them to different automakers that fall quick.

European rules require all automobile producers to cut back CO2 emissions for personal automobiles to a median of 95 grams per kilometre this yr.

A Stellantis spokesman mentioned the corporate is in discussions with Tesla concerning the monetary implications of the choice to cease the pooling settlement.

“On account of the mixture of Groupe PSA and FCA, Stellantis will probably be ready to attain CO2 targets in Europe for 2021 with out open passenger automobile pooling preparations with different automakers,” he added.

Tesla’s gross sales of environmental credit to rival automakers helped it to announce barely higher than anticipated first-quarter income this week.

The following tightening of European rules will quickly be the topic of proposals from the European Fee. The 2030 goal could possibly be lowered to lower than 43 grams/km.

Reporting by Gilles Guillaume and Claude Chendjou; Writing by Lucinda Langlands-Perry; Modifying by David Goodman