European automakers
have to meet tough
EU emissions targets
in 2020 and 2021, or face
billions in fines if they fail.
But CO2 emissions
per vehicle have been
in a rising trend,
because consumers
have been rejecting
fuel-efficient diesel cars,
and buying more SUVs.
In 2020, CO2 must be cut
to 95 grammes per kilometre
for 95% of cars, from the
current 120.5g average
(100% of the cars by by 2021)
A further 15% cut in CO2
emissions is required by 2025,
extending to 37.5% by 2030.
Automakers will be forced
to sell far more electric cars,
challenging their profitability.
The cost of the
needed technology
is not something
customers want to
pay extra for.
Sales of electric cars
will need to triple, to 6%
of the market by 2021,
as rechargeable hybrids
surge fivefold to a 5%
market share, the
German engineering
firm FEV Consulting
estimates.
Fines of 95 euros ($105)
per car, per excess gram
of CO2, quickly adds up.
Automakers can't mandate
what the customer buys.
Fines could total
25 billion euros in 2021
if the current sales mix
did not change.
PSA’s CEO Carlos Tavares
said “I’d be surprised if we
didn’t see a few bankruptcies,
considering the amplitude
of the coming change.”
Deleting less efficient models
and engines is threatening
automotive jobs, already
squeezed by the shift
to electric vehicles.