Explaining EU vehicle emissions targets: can OEMs avoid heavy fines?

CO2 emission reduction

The new average fleet targets that came into force in Europe on January 1st 2020 are having big impacts on vehicle development and technology, pushing OEMs to produce and sell more hybrids and EVs. But the rules are complex and varied by brands, volume and sales. Here we provide a ...

If carmakers’ vehicle fleets in the EU are not able to meet the new targets of 95 grams of CO2 per kilometre starting from this year, many will face stiff fines that could run into the billions of euros. That would take a painful bite out of already thinning margins across the sector both for carmakers and automotive suppliers.

OEMs have been preparing for the stricter targets for years, which will be the strictest in the world. Many have launched new hybrids, plug-in hybrid and battery electric vehicles to coincide with them. However, emissions data will be based upon actual registrations, not production – and there is simply no guarantee that consumers will purchase these models. 

What executives need to know to understand the rules? The regulations and terminology are not always easy to understand, but here is a useful explainer of key terms, as well as who is likely to be most affected.

We answer questions including:

How will the EU apply CO2 rules and targets?

How much will OEMs pay in fines?

How will CO2 rules be phased in?

How can OEMs pool or group their vehicles?

What are the exemptions and exceptions?

How will Brexit impact the regulations?

Who will be the winners and losers? 

Our full report, Climate Change vs. Carmakers,’ can be downloaded for a global analysis of changing CO2 emissions regulations.

This article is available to registered users only. 

To continue reading this article and others like it, please SIGN-IN or REGISTER FREE today.

Join us today for free

aIT Comp Tablet and print phone image 400px

Register free now to stay up-to-date with the latest industry developments, trends, and analysis, to find in-depth reports and intelligence and to connect with your peers.

Your free registration includes:

  • Access to our exclusive content
  • Weekly enewsletter
  • Option to save articles to a personal library
  • Ability to comment on articles
  • Special offers
  • Ability to manage your profile and communication preferences

Gain access to our exclusive content and features register today

Non-registered users are able to access two AIT exclusive articles per week. You have now used your allocation.
To continue reading this article and others like it, please SIGN-IN or REGISTER FREE today.