Stellantis Is Withholding Gas-Only Cars From CARB-Compliant States | The Morning Shift

An interesting phenomenon is playing out at Stellantis dealers across the country. Those in the 14 states that comply with California Air Resources Board guidelines stopped being allocated gas-only versions of some models, like the Jeep Grand Cherokee and Wrangler, back in April. Customers in such markets can still get those vehicles, but they must be specifically ordered. Meanwhile, dealers in non-CARB states are facing the opposite scenario: they’re only receiving pure-ICE versions of nameplates with optional hybrid powertrains.

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Why? A Stellantis representative told Automotive News that it’s part of an initiative to “direct vehicles to the markets where they’re needed to meet the varying emissions requirements.” Some franchises are understandably a little concerned about the consequences of the strategy, so much so that they’re trading inventory across state lines to make up the difference. From the article:

Dealers in the CARB states worry they’ll be at a disadvantage if consumers start crossing state lines to buy gasoline vehicles from another store’s inventory rather than wait for a factory order. Some are working to trade for gasoline vehicles with stores in adjacent states.

“I think many of us expected when the CARB rules actually kick in in 2026 in a meaningful way that we’d have some allocation challenges,” said Brian Maas, president of the California New Car Dealers Association. “The fact that it’s happening [with Stellantis] in the middle of 2023 is a bit of a surprise. … People are going to go to Reno and Vegas and Phoenix to get ICE Wranglers, if that’s what they want.”

[David] Kelleher, who owns [Pennsylvania] David Dodge-Chrysler-Jeep-Ram, received no gasoline-only Wranglers last month and 80 plug-ins. Last year, he typically got 40 gasoline models and 15 of the 4xe each month.

All the states close to Kelleher’s store near Philadelphia are part of the CARB framework, but he said dealers in western Pennsylvania could lose customers to Ohio or West Virginia, where Stellantis is still allocating gasoline vehicles.

Brian Heney, CEO of Kelly Automotive Group in Massachusetts, a CARB state, said many customers have grown accustomed to ordering new vehicles and waiting for them to arrive. “While we are being impacted by this move, we are finding ways to assist our customers, and keep them in our family,” Heney said in an email. “We do find that some Wrangler customers have less patience for waiting, however, in the warm weather months and will see how this affects our business and our local customers moving forwards into the summer.”

As Jalopnik understands, affected Stellantis dealerships in CARB states are still being allocated ICE-only vehicles for which no electrified version exists, like the Wagoneer. Yet in the case of the two-row Grand Cherokee, a bread-and-butter seller, only the $62,000 4xe model is automatically shipped to dealers in such territories.

We had a hint this was playing out back in May when Mopar Insiders shared an internal communication to its dealer network, which warned that these measures “may affect [dealers’] ability to order or receive shipments of certain vehicles from time to time, including to fulfill orders sold.” Stellantis also reportedly mentioned this initiative would be reflected in advertising decisions as well, as it makes little sense to market certain trims and configurations of vehicles that aren’t regularly stocked on showroom lots.

While CARB rules mandate that manufacturers must sell an increasing percentage of electrified cars year-on-year beginning in 2026, a Stellantis spokesperson clarified to Jalopnik that there are other emissions controls prompting the automaker to take action now. The home of Jeep, Dodge and Ram just so happens to be facing upwards of $200 million in civil penalties due to subpar corporate average fuel economy over the 2018 and 2019 model years, so perhaps recent events have compelled the company to move with urgency.

Update June 16, 2023, 3:10 p.m. ET: This story has been updated with new insight from Stellantis personnel that other factors, besides the impending CARB regulations, have influenced the change in dealer allotment.