Five of Europe's Top 12 Car Makers Set to Miss 2021 CO2 Emissions Targets and Face Significant Financial Penalties, According to PA Consulting Group Analysis
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LONDON, November 29, 2016 --
Volkswagen, BMW, Hyundai-Kia, Fiat Chrysler, and General Motors are likely to miss their 2021 EU CO2 emissions targets. This will leave them facing large fines, according to PA Consulting Group's annual forecast of the top 12 European car manufacturers' performance against mandatory targets.
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Country performance
Analysis also shows stark variations in the level of CO2 emissions from European countries' car fleets. The UK is ranked eighth out of 11. At the top of the table is Norway which has the lowest level of emissions and the highest use of electric vehicles, making up 22% of new car sales in 2015. In contrast, Germany is ranked tenth with electric car sales of just 0.7%.
How car makers stack up
Peugeot Citroen has the lowest emissions rate and remains at the top of the table of car makers which reflects its early commitment to hybrid, plug-in hybrid and electric vehicles and its low fleet weight. Toyota is also on course to meet its target and comes in second, overtaking Renault-Nissan at number three. These three carmakers, along with Volvo, all look set to meet their individual emission targets in 2021.
Fiat Chrysler - previously on course to meet its 2021 target - has fallen from second to eighth place following Fiat's merger with Chrysler. The carmaker now has a significant number of big cars and SUVs, damaging its CO2 performance.
Volkswagen has fallen from eighth to ninth and BMW's forecast performance has worsened. It remains in eleventh place. While BMW's plug-in hybrid models have been more successful, they are currently not selling in big enough volumes to affect overall fleet emissions.
The EU is planning to fine manufacturers 95 Euros for every gram of CO2 above the company-specific target, multiplied by the number of cars they sell in 2020. It is estimated that BMW will need to budget around 350million Euros in penalty payments, Fiat Chrysler 600 million Euros and Volkswagen up to 1 billion Euros.
Thomas Göttle, automotive expert at PA Consulting Group, says: "Car manufacturers face considerable challenges in meeting their 2021 CO2 emissions targets. This is despite significant investments in hybrids and electric vehicles to try and improve their emissions performance. The problem is, these vehicles will come too late to have an impact on the rapidly approaching 2021 deadline. The challenge is further complicated by next year's changes to the testing regime.
"Carmakers must move beyond hybrids and make electric vehicles attractive to all of their customers. They need to radically reshape their vehicle portfolio now if they are to reduce and meet their emissions targets for 2021."
To download a copy of the report, visit http://www.paconsulting.com/CO2ranking
Notes to the editor
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SOURCE PA Consulting Group
