Fiat to pool with Tesla to avoid EU fines

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Fiat Chrysler (FCA) say a plan they have agreed with Tesla will help them avoid paying fines for violating new European Union emissions rules.

Under the deal, first reported by the Financial Times, FCA will pay for the right to count Tesla's electric vehicles as part of the FCA fleet.

By pooling their vehicles, the Italian carmaker will be able to report a lower average emission figure.

Tesla has not confirmed the deal. It is not clear how much it is worth.

In a statement, FCA said it would “optimise the options for compliance the regulations offer”.

The carmaker continued: “FCA is committed to reducing the emissions of all our products... the purchase pool provides flexibility to deliver products our customers are willing to buy while managing compliance with the lowest cost approach.”

Last year FCA, which has been lagging behind rivals in the manufacture of electric vehicles, said it planned to spend €9bn (£7.75bn; $10.1bn) over four years to develop electric cars which complied with global emissions standards.

Under EU rules, carmakers can join with rival companies to form so-called open pools, but none had done so until now.

FCA applied to form an emissions pool with Tesla, and also Alfa Romeo, in February.

Toyota and Mazda have also applied to the EU to form an emissions pool, as have Citroen, Peugeot, and Opel.