The credit system by the Environmental Protection Agency EPA) allows automakers, who comply with new fuel standards, to earn credits that will offset penalties for greenhouse gas emissions. Over the coming years, the EPA will have a tremendous impact on automobile manufacturers as they set higher standards.

Automakers who specialize on fuel efficient vehicles, such as Honda and Toyota, will face little difficulty. Automakers like Chrysler, who have almost no fuel efficient vehicles to begin with, will struggle. Chrysler faces a challenge because it specializes in large muscle cars, pickups, and minivans that aren’t the most fuel efficient.

As Chrysler continues to manufacture vehicles their customers love, the EPA will charge them heavy fines. Fortunately, there’s a short term solution. Toyota, for example, could sell credits to Chrysler – which would prevent Chrysler from paying EPA fines. Then again, Toyota may not want to sell its credits because it increases competition.

In order to compete with their rivals, Chrysler should create more fuel efficient cars. If not, Chrysler will face big fines in the upcoming years. This is no easy task of course, since developing electric vehicles can be very expensive and prove less profitable.

Do you think Chrysler will turn things around? 

Share your thoughts and leave a comment below! 

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