Fiat Chrysler buys emission credits from Tesla, Toyota, and Honda

Fiat Chrysler Emissions Credits

Fiat Chrysler is lagging behind the competition in terms of fuel efficiency and the company recently purchased U.S. greenhouse gas emissions credits from rival automakers Toyota Motor, Tesla Motors, and Honda Motor, a government report released on Wednesday shows.

The Environmental Protection Agency said Wednesday that the Italian-American automaker has purchased almost 8.2 million megagrams of emissions credits. A megagram is equal to 1,000 kilograms and is calculated on emissions saved over legal requirements.

Trading in energy credits increased by nearly 400% in the 2014 model year.

Even without acquiring credits, Fiat Chrysler still would have been in compliance in the 2014 model year, the report said.

“We have made significant strides – often exceeding industry averages – in improving the performance of those types of vehicles most preferred by our customers,” the company said.

Fiat Chrysler said it earned credits for making improvements to air conditioning systems and other technological improvements.

The company purchased more than 8 million credits through the end of the 2014 model year, the report shows.

The new purchases include 5.5 million in credits from Toyota and Honda and about 1 million from Tesla.

At the end of the 2014 model year, Fiat Chrysler had a credit balance of 13.8 million.

This marks the first time that Toyota was willing to sell credits.