It looks as if a lot of car makers will have to raise prices of some models at least, to meet the cost of EU mega-fines tied to average CO2 emissions that are due to come into force in 2021. Phys.org reporting.
Big-name carmakers including Volkswagen and Fiat Chrysler face fines running into the billions for failure to meet tough new European carbon dioxide emissions limits slated for 2021, a study has found.
“Only four out of 11 carmakers are forecast to meet the EU 2021 CO2 emission target, with the rest facing significant fines,” researchers from British firm PA Consulting said in a statement Friday.
European Union nations agreed in 2014 that carmakers should limit CO2 emissions to 95 grammes per kilometre across their entire model range within seven years. The figure for 2015 stood at some 130 grammes per kilometre on average.
If the target is not met, the groups must pay fines of 95 euros ($114) per gramme over the limit, multiplied by the number of cars they sell in 2020. “Most carmakers will face penalties,” especially German manufacturers which often offer larger, more polluting engines, the study authors forecast.
“There is nothing less than a revolution facing the car industry and those manufacturers who fail to keep up face potential fines in the billions,” PA auto expert Thomas Goettle said.
Continued here.
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September 22, 2017 at 12:03PM
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