Since January 1, 2025, car manufacturers must reduce their carbon dioxide emissions by 15% compared to 2021, according to the regulation of the “coffee” (average corporate economy). From 2025 to 2029, set the maximum threshold that should not be exceeded for manufacturers, or 93.6 grams of CO2/km on average. Automobile manufacturers must follow the sales of their vehicles as close as possible. In fact, CO2 emissions depend on the models sold in Europe and, therefore, on the thermal distribution (gasoline or diesel), hybrid and electric.
Consortium strategies of certain manufacturers
First, most car manufacturers offer rechargeable hybrid and hybrid vehicles to reduce fuel consumption, which is good for consumers. In addition, they offer a variety of electric vehicles to reduce CO2 emissions. Then, the European Union authorizes manufacturers to associate with each other to buy “pollution rights” to “100% electric” vehicle manufacturers, such as Tesla or Polestar. As their vehicles do not emit CO2 when driving, they allow you to counteract the CO2 emissions of thermal or hybrid vehicles of other manufacturers.
A few days ago, the manufacturer Stellantis (including French brands Peugeot, Citroën and DS) joined Toyota, Ford, Mazda and Subaru manufacturers to form a consortium. Together, they represent about 30% of the European market with 3.05 million cars sold in 2024. According to sales of the first half of 2024, the average CO2 emissions of these manufacturers must be around 105 grams of CO2, throughout the entire anus. The association with Tesla would allow them to reach less than 95 grams of CO2 per kilometer, very close to the threshold of 93.6 grams. With technological improvements and a more favorable mixture, Stellantis, Toyota, Ford, Mazda and Subaru should go to the threshold and avoid paying fines to the European Union. Obviously, Tesla sells their rights to pollution and must be embolcasted around one billion euros of other consortium manufacturers.
For its part, Volvo sold 36% of electric vehicles in 2024. The manufacturer will be largely below the threshold and can sell CO2 credits. This is what it does with its Sister Polestar Company, 100% Electric, to the manufacturer Mercedes. Thanks to this agreement, Mercedes will reduce approximately 10 grams of CO2 its average to address its objective.
The solitary strategies of other manufacturers
The Renault group has its own forces. In the last quarter of 2024, the group sold 12% of 100% of electric vehicles. With the Renault 5, choice of the year, La Mégane, the picturesque, while waiting for the Renault 4, and for Dacia, the new spring, the electric offensive is substantial and with more accessible prices for consumers in the inhabitants of the city . The Renault group must approach 20% of electric vehicles and, while increasing their sales of hybrid vehicles (and a quarter of sales in 2024). Therefore, the Renault group is granted the means to reach the threshold established by the European Union to avoid a fine.
In terms of foreign manufacturers, the Munich Group BMW is progressing rapidly in the transition to electric vehicles, with 17% of its world sales in 2024. New electric models are being launched and new hybrid models are being launched cover the entire range. You are sure to achieve your CO2 goal. Finally, the VW group is in poor condition. Only 12% of their sales are electric vehicles and decreased slightly by 2024 compared to 2023. Without the consortium, the VW group must only have its own forces. With more than 3 million vehicles sold in Europe, the market leader can barely deprive himself of hundreds of thousands of thermal vehicles that run their factories … and increase their average CO2 emissions. A good CO2 seems inevitable for the German manufacturer.
Consequently, the majority of car manufacturers must be very close to the objective of CO2 by 2025, without having to sacrifice sales of thermal vehicles. For Tesla, Polestar or Volvo manufacturers, the sale of pollution rights is the previous investment reward and, therefore, more risky.
In conclusion, the fall in CO2 emissions decided by the European Union allows our automotive industry to win impulse against China, the world leader in electric vehicles and Tesla. In France, three battery factories leave the ground in Hauts-de-France, and an entire ecosystem is being born in the recycling of batteries.
With respect to possible fines, the European Union must be mild and drastically reduce the number of fines for the year 2025. The challenge is not to charge for car manufacturers. On the one hand, it is about encouraging manufacturers to invest in the ecological transition and, on the other hand, to reduce CO2 emissions thanks to vehicles that consumers can buy.
Finally, to preserve the European automotive sector, in particular SMEs, such as the United States (with the inflation reduction law), the minimum content of 70% of the European components must be established in electric cars sold in the continent. The common objective of Europeans is not to kill their automotive industry, but transform it at the same time as the ecological transition.
Source: BFM TV
