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Majority of car makers set to miss 2021 EU CO2 targets

Fleet News reports on PA Consulting Group’s latest CO2 forecast. The article notes that Ford, BMW, Volkswagen, Fiat Chrysler, Peugeot Citroen including Opel/Vauxhall and Hyundai-Kia could miss their 2021 EU CO2 emissions targets.

PA warns that failure to hit the targets may leave them facing fines into the billions. PA’s 2017 ranking analysis also shows that only four out of 11 carmakers are forecast to meet the EU 2021 CO2 emission target, with the rest facing significant fines. The majority of carmakers will face penalties of £83 for every gram of CO2 above the limit, multiplied by the number of cars they sell in 2020. These fines could reach or rise to more than £800 million mark for carmakers.

Fleet News’ piece goes on to say that at the current rate, Volkswagen is expected to face the biggest fine, followed by Fiat Chrysler. The biggest fall from grace, according to PA’s report, is Peugeot Citroen, which was set to meet EU emissions targets, but turns red this year, following the merger with Opel and Vauxhall. This affects their forecast until 2021. In addition, German carmakers face higher penalties and are still suffering from bigger gaps in CO2 performance for 2021, primarily due to the decline of diesel in their portfolio without direct alternatives in place today.

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The article goes on to explain that at the other end of the scale, there have been some positive developments, with Volvo, Toyota, Renault-Nissan and Jaguar Land Rover expected to meet the EU emissions targets. There has been a huge change at the top of the table, with Volvo a new number one, up from seventh last year. This is based on their strategy to not sell any more cars with conventional combustion engines from 2019 onwards, which has resulted in a huge improvement in CO2 performance ahead of 2021.

The piece finishes noting that Jaguar Land Rover has turned from amber to green for the first time now for 2021, achieving their specific target based on good progress for CO2 performance in their fleet portfolio. Toyota remains number two, but also with significant improved CO2 performance for 2021.

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