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Manufacturers and CO2 limits: 14.65 billion euros fine

This article was first published in German on Automobilwoche

PA Consulting’s Michael Schweikl, an automotive expert, is quoted in an article in Automobilwoche. Car manufacturers face CO2 penalties of more than 14 billion euros, with VW, Daimler and BMW set to make almost half of the payments.

A new study by PA Consulting shows none of the 13 leading European car makers will be able to achieve 2021 targets, leaving them facing potential fines totaling 14.65 billion euros. The forecast predicts that Volkswagen Group will be hit by a 4.5 billion euros fine, Daimler just under one billion euros, and BMW around 750 million euros.

2018 was a step backwards for car manufacturers. After four years of steady CO2 reduction in their fleets, emissions climbed, PA says. The demand for SUVs and high-performance vehicles continued to increase in the past year and there is a lack of attractive vehicles with alternative drivetrains. To achieve the emissions targets, car makers in Europe would have to add an additional 2.5 million purely battery-electric vehicles by 2021 to achieve the emissions targets, which is practically impossible.

"Car manufacturers lack the time to reduce emissions quickly enough and to avoid fines," Michael Schweikl, an automotive expert at PA Consulting, told Automobilwoche. Sales, marketing and price strategies for the acceptance of low-emission vehicles are now vitally important.

Driving into a low emissions future: How can car makers look beyond 2021

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