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A turning point for Europe's car makers: new CO2 targets for new cars

This article was first published in German as a podcast on SWR 2

Michael Schweikl, PA Consulting's automotive expert, has been interviewed on SWR 2 Radio about PA Consulting’s research on CO2 emissions.

The environment is becoming an important issue for the European automotive industry. CO2 emission limits for new cars are coming into force in the EU in 2021 – 95g of CO2/km on average with specific targets for each car maker depending on their average fleet weight. To comply with this, the manufacturers need to sell more cars with alternative engines; otherwise they would face penalties in billions.

A recent study by PA Consulting sees car makers missing their targets in 2021 and, as a result, facing the total of 14.5 billion euros in penalties. Volkswagen is the most impacted one, with a potential 4.5 billion euros fine. In contrast, Toyota is running a different strategy with its portfolio, which has already included hybrid vehicles for many years, so it faces the lowest penalty out of all major manufacturers.

Michael discusses the consistent strategy implementation of German car makers: “Hybrids and electric vehicles need to become more available within showrooms. Daimler, for example, is facing increasing CO2 emissions, triggered by bigger and heavier cars – changes in portfolio should be the answer in the short-term”.

Overall, a collaboration between various stakeholders – car makers, governments, consumers – is required. This includes fostering new technologies and charging infrastructure, which could be funded by the penalties that car makers are currently facing.


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

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