Workflow
Stellantis to Pay $4.2M Penalty for Exceeding Legal Emission Limit
STLAStellantis(STLA) ZACKS·2024-12-30 14:11

Stellantis Emissions Violations - Stellantis to pay 42milliontoCaliforniaAirResourcesBoardforvehiclesemittingpollutantsbeyondlegallimits[1]−Certainmodelsequippedwithunauthorizeddevicesreleasednearly55tonsofexcessnitrogenoxides[1]−Affectedvehiclesinclude2014−2016RamProMasterRam15002500and3500with30−literdieselengines[5]−StellantiswillrecallandmodifythesevehiclestomeetCalifornia′semissionsstandards[5]−Morethan4 2 million to California Air Resources Board for vehicles emitting pollutants beyond legal limits [1] - Certain models equipped with unauthorized devices released nearly 55 tons of excess nitrogen oxides [1] - Affected vehicles include 2014-2016 Ram ProMaster Ram 1500 2500 and 3500 with 3 0-liter diesel engines [5] - Stellantis will recall and modify these vehicles to meet California's emissions standards [5] - More than 2 million of the penalty will go to California's Air Pollution Control Fund [10] - Remaining 21milliontosupportprogramencouragingcargoshipstoslowdownduringpeakwhaleandozoneseasons[10]HistoricalEmissionsIssues−Stellantispaid2 1 million to support program encouraging cargo ships to slow down during peak whale and ozone seasons [10] Historical Emissions Issues - Stellantis paid 305 million civil fine in 2019 for illegal software in 2014-2016 Ram 1500 and Jeep Grand Cherokee vehicles [2] - Company recalled and repaired more than 100 000 vehicles spending around 800million[2]−In2022StellantisreachedpleadealwithJusticeDepartmentagreeingtopay800 million [2] - In 2022 Stellantis reached plea deal with Justice Department agreeing to pay 96 1 million in fines and forfeit 2036million[6]−In2021Stellantispaid203 6 million [6] - In 2021 Stellantis paid 5 6 million in California for non-compliant gasoline-powered vehicles [6] Auto Industry Stocks - Dorman Products Inc (DORM) Geely Automobile Holdings Limited (GELYY) and Blue Bird Corporation (BLBD) each sporting Zacks Rank 1 (Strong Buy) [7] - Zacks Consensus Estimate for DORM's 2024 sales and earnings suggests year-over-year growth of 3 66% and 51 98% respectively [4] - EPS estimates for DORM's 2024 and 2025 have improved 75 cents and 88 cents respectively in the past 60 days [4] - Zacks Consensus Estimate for BLBD's fiscal 2025 sales and earnings indicates year-over-year growth of 10 97% and 12 14% respectively [8] - EPS estimates for BLBD's fiscal 2025 have jumped 18 cents in the past 30 days [8] - Zacks Consensus Estimate for GELYY's 2024 sales and earnings calls for year-over-year growth of 51 88% and 216 67% respectively [9] - EPS estimates for GELYY's 2024 and 2025 have risen a penny and 12 cents respectively in the past 30 days [9]