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Climate targets: Car manufacturers face fines of CO2 billions

PA Consulting’s research on CO2 emissions is featured in an article in Industrieanzeiger. The article explains that many car manufacturers are far away from reaching their CO2 targets, risking fines.

The article goes on to say that based on CO2 forecasts, the 13 leading car manufacturers in Europe are likely to miss their targets for 2021 and face penalties of 14.5 billion Euros. This reflects the annual forecast of car makers achieving the EU CO2 emissions targets, published by PA.

The article draws on PA’s research which finds that emissions have increased – mainly due to increased purchases of SUVs, the strong demand for powerful and heavier cars, the lack of low-emission options for sale and the preference for petrol engines after the diesel scandal. The research shows that some car makers could face penalties that would affect their profitability. Volkswagen could face a fine of up to 4.5 billion Euros due to its high sales volume across Europe. Previous top performers such as Renault-Nissan-Mitsubishi and Volvo are now likely to experience problems.

According to the analysis, car manufacturers in Europe would have to sell 2.5 million additional battery electric vehicles to achieve their goals, corresponding to an increase of 1,280% by 2021. However, bottlenecks in production capacity would make this more difficult, PA says.

Read the full article in German in Industrieanzeiger

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

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