That sum "is the type of benefit we will probably get by no longer participating in the pooling agreement with Tesla in Europe", he told analysts and investors.
"Clearly, one of the key benefits of the merger for the business is that we are compliant in the extended EU without any need to resort to the use of credits or of pooling arrangements," he added.
Several regions including China, the US and Europe allow carmakers to meet emissions rules by purchasing "credits" from groups that sell cleaner vehicles.
Selling credits to rivals has been a financial lifeline for Tesla, often accounting for much or all of the group's profitability, while its core business of selling electric cars struggles to break even.
Tesla made US$518 million selling credits in the last quarter, while reporting a net profit of US$438 million. The company made close to US$1.6 billion selling credits across the world during 2020 alone.
Under European emissions rules, carmakers had to lower the average CO2 output of their fleet to 95 grammes per km by last year, or face heavy fines.
One concession allowed to carmakers is the ability to "pool" with cleaner rivals, allowing laggards to meet the rules by paying more environmentally friendly groups to team up.
Ford last year pooled with Volvo Cars, whose hybrids allowed the group to pass its goals, while Volkswagen pooled with the electric brand MG.
PSA passed its CO2 rules last year due to a higher mix of electric and plug-in hybrid models.
While FCA was far behind PSA in electric models, its European sales were modest compared with its larger North American operations.
Palmer was speaking after Stellantis reported its first quarterly results as a merged group, with revenues up 14 per cent to €37 billion, due in part to higher overall volumes and despite a worsening impact from the global microchip shortage.
Written by: Peter Campbell and David Keohane
© Financial Times
