A group of some of the world’s largest car manufacturers want to “pool their CO2 emissions” in the European Union with Tesla this year to avoid huge EU fines.
This year, the total emissions of all new cars sold will have to drop from an average of 106.6 grams of CO2 per kilometer traveled to 93.6 grams, and most manufacturers are very far from that goal. Manufacturers should pay 95 euros for each extra gram per car sold, which in combination with millions of cars sold means huge fines.
According to documents published by the European Commission, Toyota, Ford, Mazda, Stellantis, Subaru and Leapmotor intend to create a ‘Super Group’ with Tesla. Together, these brands account for 33 percent of the total vehicle market and 30 percent share of the total electric car market in Europe.
Taking into account sales in 2024, Tesla would significantly reduce the excess average emissions for automakers within this group, bringing them to only about 4 grams of the target. The idea is to pay Tesla for the group’s excessive emissions and thus completely avoid EU fines, he reports Jutarnji.hr.
However, teaming up with Tesla does not mean that this group would certainly avoid penalties. The problem is the sale of electric vehicles. Tesla sold fewer vehicles in the EU in 2024 than in 2023, and a continuation of that trend would increase the total CO2 emissions of the entire group. Analysts also fear that this development could slow down plans to develop and introduce new electric vehicles from Toyota, Subaru and Mazda.
These are not the only car companies that have created a group for this reason. Mercedes-Benz’s emissions were 17.3 g above the target in 2024 and they faced fines of €1 billion. That is why for 2025, Mercedes and Smart teamed up with Volvo and Polestar, which are partially owned by Chinese companies. These four companies have an 8 percent market share and a 20 percent share in the electric vehicle market.
Several of the world’s biggest automakers have yet to announce similar plans for 2025, despite each of them currently exceeding their requested targets for this year. Among them are giants like VW, Honda, Hyundai, Kia, BMW, SAIC, Suzuki and the Renault Nissan Mitsubishi alliance.
Grouping does not mean that companies merge into one, but car manufacturers buy emission credits from other brands in order to reduce their fleet average.
Tesla, as a company that produces only electric cars, earns the most. According to Reutersnearly 3 percent of Tesla’s $72 billion revenue in the first nine months of 2024 comes from the sale of CO2 credits.
Analysts at UBS estimate that Tesla’s compensation could top one billion euros this year in Europe alone if it cashes in all of its excess emissions credits, reports Bloomberg.
The former president of the European Automobile Manufacturers Association and the current CEO of Renault, Luca De Meo, previously said that European car brands face total fines of up to 15 billion euros if they do not meet the targets for 2025, but now a large part of that money, instead of going to the EU coffers, would could end up on the account of Tesla and Chinese companies.
Izvor: Jutarnji.hr / Bloomberg
Photo: Autoblog.rs Archive / Tesla
Source: autoblog.rs
