TOKYO – Global automakers face 14. 5 billion euros ($ 17. 2 billion) fines from the European Union for failing to meet stricter new emissions standards, a prospect that led them to buy carbon credits from the manufacturer American electric vehicle Tesla.
Tesla sold $ 428 million in loans for the quarter ended June, 4 times more than last year, to generate 7% of the company’s revenue. Most of the sales come from a similar formula in California, but major automakers are looking to buy European credits.
The automaker expects emissions earnings to double this year from $ 594 million in 2019.
The updated EU Commercial Average Fuel Consumption Standards, or CAFE, will take full effect in 2021. Each automaker will have to reduce fleet average emissions to 95 grams of carbon dioxide based on the kilometer. for every gram that exceeds the threshold.
The new CAFE criteria are a relief of around 30% in car carbon dioxide emissions compared to previous targets set for 2015. However, 20 major car brands touted in the EU exceeded the limits updated last year, reports British researcher JATO Dynamics.
Another BRITISH knowledge company, PA Consulting, said thirteen automakers were about to pay a total of 14. 5 billion euros in fines until 2021.
Volkswagen is presenting itself as one of the leading infringers, with carbon dioxide emissions consistent with the predicted kilometer at an average of 109. 3 grams in 2021. This would result in a fine of around EUR 4. 5 billion, or a quarter of the uniform profit with that of the German company. Year.
Nissan Motor’s alliance, which includes his French wife Renault and Japanese automaker Mitsubishi Motors, faces a fine of approximately 130 billion yen ($1. 22 billion). Nissan already expects a net loss of 670 billion yen for the year ending March 2021.
Toyota Motor’s average emissions would only exceed the 95. 1 gram threshold, however the company’s higher sales volume in the EU would result in a fine of around 2. 2 billion yen.
The effect on will be reflected in the production costs. For Mazda Motor, each Mazda3 subcompact would incur up to 400,000 yen in additional expenses.
The EU offers non-compliant car manufacturers an option to fines. Manufacturers that exceed the block’s emissions criteria can purchase credits from other corporations that exceed the requirements, potentially paying less than they would pay in fines over the negotiated price.
Fiat Chrysler Automobiles and General Motors have made the purchase of Tesla issue credits. Fiat Chrysler, which has an estimated 2. 5 billion euros next year, is expected to buy 1. 8 billion euros in credits between 2020 and 2023.
Gasoline carmakers oppose EU regulations, which they say jeopardize their finances and threaten jobs.
The European Association of Automobile Manufacturers in March called on the European Commission to postpone the implementation of the new standards. The EU, which considers the most stringent needs in the fight against climate change, has not replaced its position.
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