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EMISSIONS: Volkswagen Forecasts €1.5bn Loss Amid Stricter EU Emissions Rules

EMISSIONS
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Volkswagen anticipates a €1.5bn hit in 2025 due to stricter EU emissions standards, including potential penalties and reduced earnings from increased electric vehicle sales, it said, cited by Bloomberg.

  • From this year, EU regulations require average emissions from newly registered cars to be 15% lower in 2025 compared to 2021 levels.
  • And the EU will lower the cap on average emissions from new vehicle sales to 94 g/km in 2025 from 116 g/km previously.
  • The auto industry faces challenges with disappointing EV demand and competition from Chinese manufacturers, prompting calls for a review of EU emissions standards.
  • Renault CEO Luca De Meo estimates the 2025 rules could cost European carmakers €15bn.
  • As a result, companies with lower EV sales are planning to "pool" their emissions with leaders in the sector, buying credits to lower their overall averages, potentially saving hundreds of millions of euros in penalties.
  • Tesla stands to benefit from compensation for pooling EVs with manufacturers like Toyota, Stellantis, and Ford.
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Volkswagen anticipates a €1.5bn hit in 2025 due to stricter EU emissions standards, including potential penalties and reduced earnings from increased electric vehicle sales, it said, cited by Bloomberg.

  • From this year, EU regulations require average emissions from newly registered cars to be 15% lower in 2025 compared to 2021 levels.
  • And the EU will lower the cap on average emissions from new vehicle sales to 94 g/km in 2025 from 116 g/km previously.
  • The auto industry faces challenges with disappointing EV demand and competition from Chinese manufacturers, prompting calls for a review of EU emissions standards.
  • Renault CEO Luca De Meo estimates the 2025 rules could cost European carmakers €15bn.
  • As a result, companies with lower EV sales are planning to "pool" their emissions with leaders in the sector, buying credits to lower their overall averages, potentially saving hundreds of millions of euros in penalties.
  • Tesla stands to benefit from compensation for pooling EVs with manufacturers like Toyota, Stellantis, and Ford.