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Can carmakers downsize their engines?

Heiko Lossie and Max-Morten Borgmann


10 February 2015


PA’s research, analysing the specific CO2 footprint of vehicle fleets in Europe, is featured in an article in German national news agency, dpa, which focuses on how carmakers are rethinking their engine sizes.

The article outlines how CO2 regulation within the EU is imposing strict limits on car emissions in the future, and apart from reducing vehicle weight, there is just one solution – engines which consume less fuel.

According to EU regulation, the average target for fleets is 95 grams CO2 per kilometre in 2021. PA regularly analyses the specific CO2 footprint of carmarkers in Europe and the most recent results reveal Toyota – with its advanced hybrid vehicles – will achieve its EU limit. In contrast, German carmakers might fall short on meeting their targets and face penalties in the realm of millions or even billions of euros.

There are two trends currently further hindering carmarkers in achieving their targets. The first being customers’ preferences towards bigger SUVs – with the downsides of heavy weight, poor air drag coefficient and higher fuel consumption. Secondly, the recent decrease in fuel price does nothing to hamper the trend towards larger vehicles.


This article has also been published in various German media, for example Handelsblatt, N24, Focus online, Börsen Zeitung.

PA Consulting Group in Germany

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