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Paying the penalty: How EU emissions targets could hit fleets

PA Consulting’s CO2 research is featured in an article about the impact of new EU emissions regulations on both carmakers and fleet operators.

The article discusses the current challenges faced by carmakers, including the potential fines for failing to meet new CO2 emissions targets. It goes on to explore the impact of these fines on fleet operators. It says that on the one hand, the fines will bring a much swifter rate of electrification on manufacturer fleets, but conversely there are concerns over supply of such vehicles – not helped by the impact of coronavirus.

It quotes PA’s CO2 emissions report which states that Europe’s top 13 carmakers will see fines of some €14.5bn (£12.7bn) on the 2021 targets, which tighten up the existing 2015 targets to 95g/km for cars and 147g/km for vans.

The article goes on to cite the specific fines various carmakers face, as reported by PA. Volkswagen could be fined as much as €4.5bn (£3.9bn), factoring in its high sales volume across Europe, while Renault-Nissan-Mitsubishi, Volvo and Jaguar Land Rover – which benefits from some exemptions as it sells fewer than the benchmark 300,000 units a year – look set to fall short. Even Toyota, with its experience in hybrid vehicles, is forecast to miss its target. As such, the scale of fines for many will be enough to further affect their profitability, the article surmises.

Read the full article in Fleet World

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

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