£12bn fines for car giants
PA's automotive research on global car makers missing their CO2 emissions is featured in The Sunday Times.
The research explains that most car makers will miss the deadline of next year and will face huge fines. In order to limit the damage, car makers will be likely to slash sales of large vehicles and focus on selling smaller models instead.
The author of PA's report, Michael Schweikl, said: “All manufacturers are now set to miss their 2021 targets.”
He added: "Some of the fines will also have a “material impact on their profitability and reputation."
Th article explains that PA's research reveals that the car makers are expected to face fines worth €14.7bn.
Michael goes on to explain what the fines will mean for the car giants. He said: “They will optimise their sales portfolios, limiting high powered or big cars, and push sales of lower-emission ones. This could lead to smaller sales numbers but reduce the fines.”
Tim Lawrence, an automotive expert at PA Consulting, said: “There’s a big transition to go through from the existing combustion engines to the new technology. That’s going to cost money and that’s why they are all looking at partnering to share the [research and development] costs. They are very concerned about consumer adoption of electric vehicles.”