Stellantis, Toyota, Ford, Mazda, and Subaru plan to pool carbon emissions with US EV manufacturer Tesla in an effort to fulfill stringent European carbon reduction targets, in accordance with official EU documentation.
Others, including Volvo, Polestar, and Smart, are set to pool emissions with Mercedes-Benz.
Missing the targets by even one percentage point could incur fines of €300 million ($312 million) under the EU’s 2025 Corporate Average Fuel Economy (CAFE) standards.
Because of this pooling arrangements have now turn out to be a high-priority, with industry expert Matthias Schmidt noting that “securing pools has moved from a non-descript back office to the CEO making the calls between various partners.”
In line with Reuters, Stellantis has confirmed the group’s participation, citing the necessity to fulfill 2025 targets while continuing to develop low-emission cars. The group has previously said it must increase EV sales in Europe from the present 12% to 21% by 2025.
Schmidt observed that Stellantis, a former Tesla pooling partner, has returned despite previous claims it could meet targets independently while Ford has openly struggled to ramp up BEV production
He added that Volkswagen is more likely to form pools with Chinese partners while BMW, nevertheless, insists it can meet targets without forming pools.
Manufacturers wishing to affix the open pool must submit their full application by no later than February 5, and must sign a non-disclosure agreement and supply the pool manager with details about their CO2 emissions to permit assessing whether there may be a risk for the pool not to fulfill its targets and their ability to cover any potential excess emissions premium.
In December, Luca de Meo, president of the European Automobile Manufacturers’ Association (ACEA) and CEO of Renault Group, urged European lawmakers to take motion within the face of depressed EV adoption: “And not using a clear political statement by the European Commission by the tip of 2024, as also urged by the German, French, Italian and other European governments, the auto industry risks losing as much as €16 billion in investment capability by either paying penalties, reducing production, pooling with foreign competitors or selling electric vehicles at a loss.
“Waiting for the beginning of the Commission’s Strategic Dialogue on the longer term of the automotive industry or for the 2026 review of the CO2 laws isn’t an option, welcome and obligatory as each could also be. Manufacturers need clarity now to finalise compliance strategies, making pooling arrangements and other provisions for 2025.”
For Tesla, any revenues from pooling agreements may provide a cushion amid macroeconomic pressures. Tesla delivered 512,250 vehicles in Q4, barely missing its 1.8 million annual goal, raising concerns about its ability to navigate tightening market conditions and global uncertainty.
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