Stellantis commenced the process of modifying allocations for the two groups of states roughly two months ago. In April, the automaker informed dealers that the CARB states were retroactively enforcing more stringent greenhouse gas standards for the 2021 model year. It’s important to note that these standards are distinct from the zero-emission sales requirements set to take effect in 2026.
According to 2023 Census Bureau estimates, approximately 36 percent of the U.S. population resides in the 14 CARB states. Additionally, four other states are set to adopt the California standards for future model years.
Dealers in the CARB states are expressing concerns that they might face a disadvantage if consumers choose to cross state lines to purchase gasoline vehicles from other dealerships instead of waiting for a factory order. Some dealers are actively engaging in trades for gasoline vehicles with neighboring stores in adjacent states.
“When the CARB rules were initially scheduled to come into effect in 2026, we expected to encounter some allocation challenges,” explained Brian Maas, president of the California New Car Dealers Association. “However, it is surprising that we are experiencing this situation [with Stellantis] in the middle of 2023. If customers desire gasoline-powered Wranglers, they will likely head to Reno, Vegas, or Phoenix to acquire them.”
Last month, Kelleher, the owner of David Dodge-Chrysler-Jeep-Ram, did not receive any gasoline-only Wranglers, but received 80 plug-in models. In previous years, he typically received 40 gasoline models and 15 of the 4xe variant on a monthly basis.
Although the states near Kelleher’s dealership near Philadelphia are part of the CARB framework, he anticipates that dealers in western Pennsylvania may lose customers to Ohio or West Virginia, where Stellantis still allocates gasoline vehicles.
Brian Heney, CEO of Kelly Automotive Group in Massachusetts (a CARB state), mentioned that many customers have grown accustomed to ordering new vehicles and waiting for their arrival. In an email, Heney stated, “While we are being impacted by this change, we are finding ways to assist our customers and retain their loyalty. Nevertheless, we have observed that some Wrangler customers have less patience when it comes to waiting, particularly during the warmer months. We will closely monitor how this affects our business and local customers as we move forward into the summer.”
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
