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Creative accounting with CO2 emissions

PA Consulting’s latest research into CO2 emissions targets is featured in a story by NRC, a Dutch national newspaper.

The story reports on the deal between Fiat Chrysler Automobiles (FCA) and Tesla to pool ‘dirty’ cars with ‘clean’ cars to avoid European CO2 fines.

The article mentions PA’s latest research, showcasing which car makers will have problems complying with European rules in two years’ time. The best performing company is Volvo, which will bring down CO2 emissions to 13 grams per kilometre on average by 2021. Also, Toyota and Renault-Mitsubishi-Nissan are expected to comply.

However, Fiat-Chrysler is seen as ‘a bad example’. The Italian-American car makers had ‘no electrification strategy up to 2018’ and is not expected to comply to European norms, as is the American company Ford. The Japanese car manufacturer Mazda, the French PSA (Peugeot-Citroen) and the German Volkswagen are in trouble. The fines (95 euros per gram above the target multiplied with the number of cars sold) will add up. PA calculated that Fiat-Chrysler will have to pay 700 million euros in fines by 2021. Volkswagen could be fined 1.4 billion euros because it sells so many cars in Europe.

Read the full article in Dutch.

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