In the discussion about electric vehicles, there’s a term that creates a lot of confusion for someone just learning about them. Certain EV models like the Chevrolet Spark EV, Ford Focus EV, Fiat 500e, Honda Fit EV and Toyota RAV4 EV are referred to as “compliance cars.” Exactly what does that mean?
The term compliance car comes from vehicle emissions mandates passed in certain states – namely California, Oregon and Maryland, though others are considering similar legislation. Laws in these states require vehicle manufacturers to sell a certain percentage of vehicles that are classified as zero emissions vehicles – basically, they don’t pollute the air at all. If a manufacturer cannot reach the state’s mandate for such vehicles, they are not allowed to sell vehicles OF ANY TYPE in that state.
So, in order to be compliant with the state’s emissions laws, some major manufacturers have chosen to create one or more electric vehicle models that are sold in those states only, in order to be able to sell all their other gas-powered models. Often the vehicles are electric versions of a gas-powered model they already sell, which is true in the case of both the Spark EV and the 500e.
The president of Fiat famously asked consumers in a press conference to simply not buy the Fiat 500e, as he claimed the company loses about $14,000 per vehicle sold. In fact, many companies claim they lose money on these models, but they do so I order to keep selling all of their vehicles in those areas.
(Interestingly, I’ve read reviews of the electric and gas versions of the Chevy Spark and Fiat 500. In both cases, the electric version was rated significantly higher than the gas-powered versions!)
Here’s a story by ThoughtCo, that explains it in a bit more detail:
https://www.thoughtco.com/what-is-a-compliance-car-85648