Asia > Eastern Asia > Japan > Carmakers face billions in European CO2 fines from 2021

Japan: Carmakers face billions in European CO2 fines from 2021

2017/09/23

Large-name carmakers inclunding 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 estimate 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," particularly German manufacturers which often offer larger, additional polluting engines, the study authors estimate.

"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.

Germany's BMW, Volkswagen and Daimler, US-based Ford, Italian-American Chrysler, France's PSA and South Korea's Hyundai will be unable to get their emissions under control by the deadline, according to the study.

The pill will be particularly bitter for Peugeot parent company PSA, which will only miss its targets because of its recent purchase of Germany's Opel from General Motors.

As the world's major carmaker and owner of Audi and Porsche, Volkswagen could suffer a 1.7-billion-euro penalty, while Brussels' bill for Fiat Chrysler could reach 1.2 billion, the forecasts suggest.

Sweden's Volvo, Japan's Toyota, Franco-Japanese Renault-Nissan and Jaguar Land Rover are all predicted to meet CO2 targets.

German carmakers have announced a flood of electric models for the coming years as emissions scandals have tarnished the image of diesel, which they had bet on to reduce the CO2 toll.

But the new technology will arrive too late on the market to spare the firms from hefty bills in 2021.

Related Articles
  • Japan policymakers soften fiscal pledges as election prospects loom

    2017/09/23 Senior Japanese policymakers on Friday said they may need to adjust calculations underlying the country's plans to trim spending, an indication the government could look to water down previous pledges to improve fiscal prudence. The statements are a nod to recent reports premier Shinzo Abe will delay the timing for conference fiscal reform goals to allow the scope to boost spending on education.
  • UNWTO: International tourism – strongest half-year results since 2010

    2017/09/09 Destinations worldwide welcomed 598 million international tourists in the initial six months of 2017, some 36 million additional than in the same period of 2016. At 6%, increase was well above the trend of recent years, making the current January-June period the strongest half-year since 2010. Visitor numbers reported by destinations around the world reflect strong request for international travel in the initial half of 2017, according to the new UNWTO World Tourism Barometer. Worldwide, international tourist arrivals (overnight visitors) increased by 6% compared to the same six-month period last year, well above the sustained and consistent trend of 4% or higher increase since 2010. This represents the strongest half-year in seven years.
  • There’s no doubt we lost our mojo - our way as an engineering company that made Honda Honda

    2017/09/08 The driver punched the air as his red and white Honda McLaren roared over the finish line. It was Suzuka, Japan, 1988, and Ayrton Senna had just become Formula One world champion for the initial time. The McLaren racing team and its engine maker, Honda Motor, were unstoppable that year, their drivers winning all but one of the 16 grand prix races. Off the track Honda had been tasting success, too. In the 1970s, its engineers had raised the bar for fuel efficiency and cleaner emissions with the CVCC engine. In the 1980s, as its engines were propelling Senna to multiple victories, the Civic and Accord cars were redefining the American family sedan. In 1997, Honda became one of the initial carmakers to unveil an all-electric battery car, the EV Plus, capable of conference California’s zero emission requirement.
  • Why Japanese workers aren’t as concerned about robots stealing their jobs

    2017/08/21 A culture that celebrates robots and a tradition of "lifetime employment" — retaining and retraining workers — created a muted debate. Thousands upon thousands of cans are filled with beer, capped and washed, wrapped into six-packs and boxed at dizzying speeds — 1,500 a minute, to be exact — on humming conveyor belts that zip and wind in a sprawling factory near Tokyo. Nary a soul is in sight in this picture-perfect image of Japanese automation.
  • Taro Kono starts well as Japan's foreign minister

    2017/08/15 Foreign Minister Taro Kono made his presence felt on his initial overseas trip since taking the position last week. In fluent English, Kono exchanged opinions with other foreign ministers and distinguished himself on several occasions, inclunding with an off-the-cuff counterargument to Chinese Foreign Minister Wang Yi. Although Kono has made a solid start, however, the diplomatic arena contains a lot of pending issues — and producing good results will not be easy.