The Wall Street Journal reported on findings from PA Consulting Group's annual forecast of car manufacturers' performance against mandatory EU CO2 emissions targets. Results of PA's report suggest that Ford, BMW, Volkswagen, Fiat Chrysler and Peugeot Citroen will miss their 2021 targets, leaving them facing significant fines.
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The article notes that Ford would have to pay fines of $350 million, while Volkswagen would be hardest hit with a fine of €1.7 billion or 15% of expected 2017 profits.
Thomas Goettle, PA’s head of automotive, said that for the German car makers in particular, the fines would be less significant than the reputational hit. They will “do everything possible to avoid bad headlines."