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Car manufacturers facing ‘massive’ CO2 fines

Research claims top vehicle firms are failing to hit limits on carbon dioxide, putting them at risk of heavy penalties

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Nearly two-thirds of top car manufacturers are facing ‘massive’ CO2 fines, according to new research.

A PA Consulting study, due to be released today, has found that eight out of 13 of the major brands selling new cars in Europe are on course to fail new emissions standards to be imposed from 2021, amid warnings they have been too slow to develop cleaner, alternatively-fuelled vehicles.

Manufacturers have a set target to hit by then, with the Europe-wide goal of an average of 95g/km of CO2. Firms face a €95 (circa £85) fine for every gram of carbon dioxide by which they exceed their personalised limits, multiplied by the number of cars produced by the manufacturer and registered in the EU in the previous year.

The research says that the following companies affected are all at risk of failing to hit their targets:

  • Volkswagen Group (VW, Audi, SEAT, Skoda, Porsche, Bentley, Lamborghini)
  • Groupe PSA (Peugeot, Citroën, DS Automobiles, Vauxhall),
  • Fiat Chrysler (Fiat, Alfa Romeo, Abarth, Jeep, Maserati)
  • Hyundai (Hyundai, Kia)
  • BMW (BMW, Mini, Rolls-Royce)
  • Ford
  • Mazda
  • Daimler (Mercedes-Benz, Smart)
   

The consultancy also claims that Volkswagen Group would be hit with the biggest fine of up to €1.4 billion (circa £1.2bn), while Groupe PSA is at risk of a €600 million (circa £535.2m) penalty.

22% growth of electrified vehicles is not fast enough

Data from the Society of Motor Manufacturers and Traders (SMMT) show year-to-date growth of 22% in alternatively-fuelled vehicles, against an overall market that is 7% down on the same time last year. However, this rate of growth will not be sufficient to achieve the required results by 2021.

Novermber 2018 AFV registrations
Electric and hybrid new car registrations for November 2018 (Source: SMMT)

The Europe-wide collapse in diesel sales has been welcomed by air quality campaigners, but it is having a negative effect on car manufacturers’ attempts to reduce CO2 outputs as diesel engines produce less CO2 than petrol engines (at least in artificial laboratory conditions).

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Stuart Masson
Stuart Massonhttps://www.thecarexpert.co.uk/
Stuart is the Editorial Director of our suite of sites: The Car Expert, The Van Expert and The Truck Expert. Originally from Australia, Stuart has had a passion for cars and the automotive industry for over thirty years. He spent a decade in automotive retail, and now works tirelessly to help car buyers by providing independent and impartial advice.

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