Fiat Chrysler to spend $2 billion on CO2 fines and credits

Eoin Hudson News

TL;DR: despite plans for nearly $700 million a year in compliance spending, Fiat Chrysler Automobiles (FCA) is still at risk of incurring a $780 million fine from the EU in 2021.
Hyperproof summary: this is a powerful illustration of how you can’t simply spend your way to compliance. The efficiency, scalability, and ultimately, the efficacy of your compliance programs and management are fundamental to achieving a return on your investment in them.
Here’s the breakdown of FCA’s expenditures and efforts, based on a statement by CFO Richard Palmer:

    • $2 billion spend on regulatory credits over three years, 2019-21 through deals with carmakers like Tesla.
    • $134 million in compliance costs in Europe, the Middle East and Africa—which will increase next year—would’ve been closer to $436 million without the above spend.
    • $670 million in cash outlays last year, between credits and compliance payments, will rise “moderately” this year.

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